Exhibit 99
| | |
 |
| |
| FOR IMMEDIATE RELEASE | | Stock Symbol: PBNY |
| April 25, 2008 | | Traded on NASDAQ Global Select Market |
PROVIDENT BANK CONTACT:
Paul A. Maisch, EVP & Chief Financial Officer
Miranda Grimm, VP & Controller
845.369.8040
PROVIDENT NEW YORK BANCORP REPORTS SECOND QUARTER RESULTS 18%
INCREASE IN QUARTERLY EPS.
MONTEBELLO, NY – April 25, 2008 – Provident New York Bancorp (Nasdaq-Global Select Market: PBNY), the parent company of Provident Bank today announcedsecond quarter results for the fiscal year ending September 30, 2008. Net income for the quarter was $5.1 million, or $0.13 per diluted share, compared to net income of $4.4 million, or $0.11 per diluted share for the second quarter of fiscal 2007. On a year-to-date basis net income was $11.0 million, or $0.28 per diluted share for fiscal 2008, an increase of 21.4% and 27.3% respectively over the same period for fiscal 2007.
Highlights for the quarter include:
| • | | Net interest margin on a fully tax equivalent basis was 3.89% for the second quarter of fiscal 2008, as compared to 3.50% for the second quarter of fiscal 2007 and 3.74% for the linked quarter ended December 31, 2007. |
| • | | The Company experienced deposit growth over both fiscal year end 2007 and the first quarter of fiscal 2008. |
| • | | Expense control has held increases to non-interest expense under 2% on a quarterly comparison, and as a result the efficiency ratio continues to improve from 73.2% in March 2007 to 65.3%. |
| • | | Net charge-offs for the quarter were $1.9 million and the provision for loan losses was $3.0 million as the Company experienced a slowing of loan payments, mainly from the small business sector. |
| • | | The Company realized net gains on the sale of available for sale securities of $1.0 million. |
| • | | The Company repurchased a total of 147,514 shares at a cost of $1.9 million under its current stock repurchase program. |
President’s Comments
George Strayton, President and CEO commented: “I am pleased to report that earnings per share increased 18% on a quarter-to-quarter basis and 27% on a year-to-date basis despite taking steps to increase our loan loss reserves by $1.0 million after charge-offs of $1.9 million for the quarter. The additional provisions taken and level of charge-offs reflect a more aggressive approach to credit risk management in a slowing economy. Net interest margin, a principal driver of earnings, was up 6.5% on a year-to-year basis, even after the increased loan loss provisions. This reflects our core margin growth and earnings strength in the current interest rate environment. During the quarter, we, increased municipal deposit transaction accounts by 77%, commercial and industrial loans by 4% and operating expense by 1.9%.”
| | |
| Provident New York Bancorp Press Release cont. | | 2 |
Net Interest Income and Margin
Second quarter of fiscal 2008 compared with second quarter of fiscal 2007
Net interest income was $23.2 million for the second quarter of fiscal 2008, a $2.8 million increase from the same quarter of fiscal 2007. The net interest margin on a tax equivalent basis was 3.89% for the second quarter of fiscal 2008, compared to 3.50% for the prior year’s second quarter. Due to decreases in the federal funds target rate and the prime rate, the yield on loan balances declined 48 basis points. For the same period, the cost of interest bearing liabilities decreased 57 basis points to 2.82%. The tax equivalent yield on investments increased 39 basis points compared to the same quarter in 2007.
Second quarter fiscal 2008 compared with linked quarter ended December 31, 2007
Net interest income increased $867,000 from the quarter ended December 31, 2007. The net interest margin increased 15 basis points from 3.74% for the quarter ended December 31, 2007. As a result of the recent reductions in the federal funds target rate, the yield on average interest earning assets decreased by 22 basis points compared to the quarter ended December 31, 2007. The cost of average interest bearing liabilities decreased 45 basis points from the quarter ended December 31, 2007.
Year-to-date comparison fiscal 2008 to fiscal 2007
On a year-to-date basis net interest income increased $5.5 million for the six-month period ended March 31, 2008 as compared to the same period in 2007 with the tax equivalent net interest margin increasing from 3.39% to 3.82%.
Non-Interest Income
Second quarter of fiscal 2008 compared with second quarter of fiscal 2007
Non-interest income increased $848,000 compared to the second quarter of fiscal 2007. Deposit service charges and fees increased $277,000, or 9.9%, partially offsetting a decline in title insurance fees associated with a lower level of residential mortgage loan originations. Fiscal 2007 also included $295,000 in income related to student loan originations, a business the Company exited in March 2007. The Company recorded $961,000 in net security gains for the second quarter of 2008, compared to $4,000 for the same quarter in 2007.
Second quarter fiscal 2008 compared with linked quarter ended December 31, 2007
Non-interest income increased $794,000 mainly due to an increase in deposit service charges and the aforementioned net securities gain, partially offset by lower title insurance fees.
Year-to-date comparison fiscal 2008 to fiscal 2007
Non-interest income increased 7.8% compared to the same period in 2007. The largest increases were seen in deposit fees and service charges and gain on sale of securities categories. Declines were seen in title insurance fees, bank owned life insurance, which was affected in the comparison by a death benefit received in 2007 and other income, which was affected by a sale of premises and income from student loan originations in fiscal 2007.
Non-Interest Expense
Second quarter of fiscal 2008 compared with second quarter of fiscal 2007
Non-interest expense increased $353,000 or 1.9% over the second quarter of fiscal 2007 mainly in the area of compensation and benefits, which included increases in 401K benefits, employee related insurance, additional employees to emphasize new business lines and performance increases for the second quarter of 2008 and occupancy expense. These increases were offset by decreases in stock-based compensation primarily due to the expiration of the Company’s first step ESOP in fiscal 2007 and professional fees.
| | |
| Provident New York Bancorp Press Release cont. | | 3 |
Second quarter fiscal 2008 compared with linked quarter ended December 31, 2007
On a quarter-to-quarter basis non-interest expense increased $802,000, or 4.4%, mainly due to compensation and benefits, annual merit increases and seasonal adjustments in accounting for vacation pay, occupancy and office operations and data processing expense due to increased telecommunication costs. Office operations were affected by costs of $215,000 associated with the closing of our Bardonia office, which is expected to generate cost savings in future periods.
Year-to-date comparison fiscal 2008 to fiscal 2007
Non-interest expense increased by $551,000, or 1.5%, over year-to-date 2007 primarily in the areas of compensation and benefits and occupancy expense from indexed increases in rental costs and costs associated with the Bardonia office closing of $325,000. Mostly offsetting these increases were declines in stock-based compensation, due to the maturity of the first step ESOP loan, professional fees and amortization of intangible assets.
Income Taxes
The company’s effective tax rate was 28.1% for the second quarter of fiscal 2008, compared to 30.8% for the same period last year. This decrease was due to increased investment in tax-exempt securities as compared to the prior period and the expiration of the first step ESOP which was primarily non-deductible expense. The Company’s effective tax rate for the linked quarter ended December 31, 2007 was 30.7%. The effective tax rate for year-to-date 2008 was 29.5% compared to 29.4% for fiscal 2007.
Key Balance Sheet Changes at March 31, 2008 vs. September 30, 2007
| | • | | Gross loans grew $15.6 million to $1.7 billion, largely due to a 1.1% increase in commercial loans and a 1.0% increase in Residential mortgage loans. |
| | • | | Securities increased $4.8 million to $837.3 million, due to increases in the market valuation of available for sale securities. |
| | • | | Period end deposits increased $8.4 million at March 31, 2008 as compared to September 30, 2007, primarily due to increases in business and municipal categories, as deposits moved into lower-yielding accounts, which in turn has benefited net interest income. |
Capital
Capital increased over September 30, 2007 levels due to increases in the Company’s net income after dividends and unrealized gain on the securities portfolio, more than offsetting purchases of treasury stock. Treasury stock repurchases during the second quarter of fiscal 2008 totaled 147,514 shares and 1,264,314 shares fiscal year-to-date, at a cost of $1.9 million and $5.9 million, respectively. As of March 31, 2008, approximately 1,472,000 shares remain available for repurchase under the Company’s current stock repurchase program.
Credit Quality
The provision for loan loss was $3.0 million for the quarter ending March 31, 2008, compared to $400,000 for the quarter ending March 31, 2007, and $3.7 million and $800,000 for the six-month periods ended March 31, 2008 and 2007 respectively. Net charge offs were $1.9 million and $401,000 for the quarters ending March 31, 2008 and 2007, respectively, and $2.7 million and $738,000 for the six-month periods ending March 31, 2008 and 2007, respectively. During the quarter, net charge-offs increased to $1.9 million, or 46 basis points of average loans outstanding, from $764,000 in the linked quarter, which was 19 basis points of average loans outstanding. Net charge-offs were $401,000, or 10 basis points of average loans outstanding for the second quarter of fiscal
| | |
| Provident New York Bancorp Press Release cont. | | 4 |
2007. The primary cause of increased losses was the performance of the credit-scored small business loan portfolio, reflecting weakened economic conditions. Net charge-offs for the quarter for this portfolio were $1.1 million of the approximately $100 million of the average small business loans outstanding. The remainder of the charge-offs resulted from analysis of individual commercial impaired loans, while residential and consumer loan portfolios did not account for a significant portion of losses. In light of weaker economic conditions and recent loss experience in the portfolios, we increased the provision for loan losses for the quarter ended March 31, 2008 to $3 million, which is $1.1 million in excess of the net charge-offs for the quarter. This compares to provision for loan losses of $700,000, for the prior linked quarter, and $400,000 for the quarter ended March 31, 2007. Non-performing assets increased $6.3 million from September 30, 2007 and $4.2 million from December 31, 2007, primarily due to deterioration in credit quality seen in the commercial sector of the Company’s loan portfolio. Our asset coverage ratios remain strong at March 31, 2008 with our ratio of allowance to total loans at 1.29% and 158% of non-performing loans.
Note:
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.
Headquartered in Montebello, New York, Provident Bank is an independent full-service community bank. Provident Bank operates 33 branches that serve the Hudson Valley region and Bergen County, New Jersey. The bank offers a complete line of commercial, retail and investment management and trust services. Visit the Provident Bank web site atwww.providentbanking.com.
| | |
| Provident New York Bancorp Press Release cont. | | 5 |
Provident New York Bancorp and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION
(unaudited, in thousands, except share and per share data)
| | | | | | | | |
| | | March 31,
2008 | | | September 30,
2007 | |
Assets: | | | | | | | | |
Cash and due from banks | | $ | 44,627 | | | $ | 47,291 | |
Total securities | | | 837,268 | | | | 832,443 | |
Loans: | | | | | | | | |
One- to four-family residential mortgage loans | | | 505,727 | | | | 500,825 | |
Commercial real estate, commercial business and construction loans | | | 905,425 | | | | 895,233 | |
Consumer loans | | | 242,486 | | | | 242,000 | |
| | | | | | | | |
Total loans, gross | | | 1,653,638 | | | | 1,638,058 | |
Allowance for loan losses | | | (21,413 | ) | | | (20,389 | ) |
| | | | | | | | |
Total loans, net | | | 1,632,225 | | | | 1,617,669 | |
Federal Home Loan Bank stock, at cost | | | 32,953 | | | | 32,801 | |
Premises and equipment, net | | | 33,504 | | | | 30,079 | |
Goodwill | | | 161,214 | | | | 161,154 | |
Other amortizable intangibles | | | 9,633 | | | | 11,041 | |
Bank owned life insurance | | | 41,680 | | | | 40,818 | |
Other assets | | | 30,402 | | | | 28,803 | |
| | | | | | | | |
Total assets | | $ | 2,823,506 | | | $ | 2,802,099 | |
| | | | | | | | |
Liabilities: | | | | | | | | |
Deposits | | | | | | | | |
Demand deposits | | $ | 369,165 | | | $ | 377,393 | |
NOW deposits | | | 158,978 | | | | 148,875 | |
| | | | | | | | |
Total transaction accounts | | | 528,143 | | | | 526,268 | |
Savings | | | 341,210 | | | | 346,430 | |
Money market deposits | | | 300,836 | | | | 277,793 | |
Certificates of deposit | | | 551,912 | | | | 563,193 | |
| | | | | | | | |
Total deposits | | | 1,722,101 | | | | 1,713,684 | |
Borrowings | | | 664,115 | | | | 661,242 | |
Mortgage escrow funds and other | | | 29,127 | | | | 22,084 | |
| | | | | | | | |
Total liabilities | | | 2,415,343 | | | | 2,397,010 | |
Stockholders’ equity | | | 408,163 | | | | 405,089 | |
| | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 2,823,506 | | | $ | 2,802,099 | |
| | | | | | | | |
Shares of common stock outstanding at period end | | | 40,086,491 | | | | 41,230,618 | |
Book value per share | | $ | 10.18 | | | $ | 9.82 | |
| | |
| Provident New York Bancorp Press Release cont. | | 6 |
Provident New York Bancorp and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(unaudited, in thousands, except share and per share data)
| | | | | | | | | | | | | | | |
| | | Quarter Ended March 31, | | Quarter Ended
December 31,
2007 | | Year to Date Ended March 31, |
| | | 2008 | | 2007 | | | 2008 | | 2007 |
Interest and dividend income: | | | | | | | | | | | | | | | |
Loans and loan fees | | $ | 26,840 | | $ | 26,663 | | $ | 28,631 | | $ | 55,471 | | $ | 52,951 |
Securities | | | 9,799 | | | 9,974 | | | 9,550 | | | 19,349 | | | 20,474 |
Other earning assets | | | 726 | | | 628 | | | 664 | | | 1,390 | | | 1,179 |
| | | | | | | | | | | | | | | |
| | | 37,365 | | | 37,265 | | | 38,845 | | | 76,210 | | | 74,604 |
Interest expense: | | | | | | | | | | | | | | | |
Deposits | | | 7,785 | | | 8,829 | | | 8,923 | | | 16,708 | | | 17,963 |
Borrowings | | | 6,339 | | | 7,968 | | | 7,548 | | | 13,887 | | | 16,478 |
| | | | | | | | | | | | | | | |
Total interest expense | | | 14,124 | | | 16,797 | | | 16,471 | | | 30,595 | | | 34,441 |
| | | | | | | | | | | | | | | |
Net interest income | | | 23,241 | | | 20,468 | | | 22,374 | | | 45,615 | | | 40,163 |
Provision for loan losses | | | 3,000 | | | 400 | | | 700 | | | 3,700 | | | 800 |
| | | | | | | | | | | | | | | |
Net interest income after provision for loan losses | | | 20,241 | | | 20,068 | | | 21,674 | | | 41,915 | | | 39,363 |
| | | | | |
Non-interest income: | | | | | | | | | | | | | | | |
Deposit fees and service charges | | | 3,061 | | | 2,784 | | | 3,022 | | | 6,083 | | | 5,630 |
Net gain on sales of securities | | | 961 | | | 4 | | | 0 | | | 961 | | | 4 |
Title insurance fees | | | 76 | | | 281 | | | 269 | | | 345 | | | 547 |
Bank owned life insurance | | | 428 | | | 407 | | | 434 | | | 862 | | | 1,181 |
Investment management fees | | | 729 | | | 726 | | | 763 | | | 1,492 | | | 1,348 |
Other | | | 498 | | | 703 | | | 471 | | | 969 | | | 1,230 |
| | | | | | | | | | | | | | | |
Total non-interest income | | | 5,753 | | | 4,905 | | | 4,959 | | | 10,712 | | | 9,940 |
| | | | | |
Non-interest expense: | | | | | | | | | | | | | | | |
Compensation and benefits | | | 9,061 | | | 8,142 | | | 8,630 | | | 17,691 | | | 15,951 |
Stock-based compensation plans | | | 924 | | | 1,477 | | | 996 | | | 1,920 | | | 2,853 |
Occupancy and office operations | | | 3,294 | | | 3,011 | | | 2,925 | | | 6,219 | | | 5,844 |
Advertising and promotion | | | 828 | | | 874 | | | 867 | | | 1,695 | | | 1,757 |
Professional fees | | | 892 | | | 1,079 | | | 883 | | | 1,775 | | | 2,068 |
Data and check processing | | | 694 | | | 639 | | | 573 | | | 1,267 | | | 1,291 |
Amortization of intangible assets | | | 662 | | | 774 | | | 690 | | | 1,352 | | | 1,577 |
ATM/debit card expense | | | 455 | | | 451 | | | 501 | | | 956 | | | 894 |
Other | | | 2,114 | | | 2,124 | | | 2,057 | | | 4,171 | | | 4,260 |
| | | | | | | | | | | | | | | |
Total non-interest expense | | | 18,924 | | | 18,571 | | | 18,122 | | | 37,046 | | | 36,495 |
| | | | | |
Income before income tax expense | | | 7,070 | | | 6,402 | | | 8,511 | | | 15,581 | | | 12,808 |
Income tax expense | | | 1,987 | | | 1,970 | | | 2,617 | | | 4,604 | | | 3,765 |
| | | | | | | | | | | | | | | |
Net income | | $ | 5,083 | | $ | 4,432 | | $ | 5,894 | | $ | 10,977 | | $ | 9,043 |
| | | | | |
Per common share: | | | | | | | | | | | | | | | |
| | | | | |
Basic earnings | | $ | 0.13 | | $ | 0.11 | | $ | 0.15 | | $ | 0.28 | | $ | 0.22 |
Diluted earnings | | | 0.13 | | | 0.11 | | | 0.15 | | | 0.28 | | | 0.22 |
Dividends declared | | | 0.06 | | | 0.05 | | | 0.06 | | | 0.12 | | | 0.10 |
| | | | | |
Weighted average common shares: | | | | | | | | | | | | | | | |
Basic | | | 38,847,528 | | | 41,144,852 | | | 39,469,995 | | | 39,160,462 | | | 41,156,998 |
Diluted | | | 39,225,319 | | | 41,671,701 | | | 39,805,026 | | | 39,545,316 | | | 41,705,300 |
| | |
| Provident New York Bancorp Press Release cont. | | 7 |
Selected Financial Condition Data:
(in thousands except share and per share data)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | |
| | | 03/31/08 | | 12/31/07 | | 09/30/07 | | | 06/30/07 | | | 03/31/07 | |
| | | (In thousands) | |
End of Period | | | | | | | | | | | | | | | | | |
Total assets | | $ | 2,823,506 | | 2,799,342 | | $ | 2,802,099 | | | $ | 2,782,801 | | | $ | 2,801,365 | |
Loans, gross (1) | | | 1,653,638 | | 1,655,437 | | | 1,638,058 | | | | 1,613,841 | | | | 1,560,393 | |
Securities available for sale | | | 801,784 | | 780,714 | | | 794,997 | | | | 794,949 | | | | 844,271 | |
Securities held to maturity | | | 35,484 | | 35,573 | | | 37,446 | | | | 41,416 | | | | 52,080 | |
Bank owned life insurance | | | 41,680 | | 41,252 | | | 40,818 | | | | 40,387 | | | | 39,954 | |
Goodwill | | | 161,214 | | 161,154 | | | 161,154 | | | | 161,154 | | | | 159,813 | |
Other amortizable intangibles | | | 9,633 | | 10,324 | | | 11,041 | | | | 11,782 | | | | 12,556 | |
Other non-earning assets | | | 63,906 | | 58,033 | | | 57,282 | | | | 67,115 | | | | 72,987 | |
Deposits | | | 1,722,101 | | 1,672,538 | | | 1,713,684 | | | | 1,748,827 | | | | 1,740,305 | |
Borrowings | | | 664,115 | | 686,508 | | | 661,242 | | | | 595,411 | | | | 618,643 | |
Equity | | | 408,163 | | 401,923 | | | 405,089 | | | | 402,318 | | | | 412,638 | |
| | | | | |
Average Balances | | | | | | | | | | | | | | | | | |
Total assets | | $ | 2,813,448 | | 2,780,360 | | $ | 2,783,640 | | | $ | 2,779,780 | | | $ | 2,786,727 | |
Loans, gross: | | | | | | | | | | | | | | | | | |
Real estate- residential mortgage | | | 500,930 | | 499,915 | | | 500,261 | | | | 489,998 | | | | 470,741 | |
Real estate- commercial mortgage | | | 530,267 | | 537,440 | | | 539,618 | | | | 541,364 | | | | 535,178 | |
Real estate- construction & land development | | | 153,816 | | 152,615 | | | 144,615 | | | | 123,774 | | | | 111,671 | |
Commercial and industrial | | | 219,782 | | 210,425 | | | 205,832 | | | | 197,493 | | | | 181,204 | |
Consumer loans | | | 243,552 | | 243,456 | | | 238,073 | | | | 232,508 | | | | 242,464 | |
Loans total | | | 1,648,347 | | 1,643,851 | | | 1,628,399 | | | | 1,585,137 | | | | 1,541,258 | |
Securities (taxable) | | | 661,947 | | 644,336 | | | 660,937 | | | | 695,016 | | | | 765,255 | |
Securities (non-taxable) | | | 168,968 | | 164,144 | | | 156,328 | | | | 149,125 | | | | 140,987 | |
Total earning assets | | | 2,494,913 | | 2,467,655 | | | 2,458,422 | | | | 2,441,036 | | | | 2,461,371 | |
Non earning assets | | | 318,535 | | 312,705 | | | 325,218 | | | | 338,744 | | | | 325,356 | |
Non-interest bearing checking | | | 370,843 | | 357,246 | | | 360,705 | | | | 348,698 | | | | 341,016 | |
Interest bearing NOW accounts | | | 169,187 | | 143,396 | | | 152,926 | | | | 160,187 | | | | 153,105 | |
Total transaction accounts | | | 540,030 | | 500,642 | | | 513,631 | | | | 508,885 | | | | 494,121 | |
Savings (including mortgage escrow funds) | | | 342,412 | | 348,670 | | | 380,749 | | | | 383,955 | | | | 368,171 | |
Money market deposits | | | 267,310 | | 259,931 | | | 266,714 | | | | 256,541 | | | | 250,347 | |
Certificates of deposit | | | 561,935 | | 581,204 | | | 585,115 | | | | 589,733 | | | | 600,956 | |
Total deposits | | | 1,711,687 | | 1,690,447 | | | 1,746,209 | | | | 1,739,114 | | | | 1,713,595 | |
Total interest bearing deposits | | | 1,340,844 | | 1,333,201 | | | 1,385,504 | | | | 1,390,416 | | | | 1,372,579 | |
Borrowings | | | 675,150 | | 665,380 | | | 612,274 | | | | 593,467 | | | | 637,472 | |
Equity | | | 405,326 | | 403,146 | | | 401,617 | | | | 409,528 | | | | 411,611 | |
Other comprehensive income / (loss) (SFAS 115), reflected in stockholders’ equity | | | 5,638 | | 1,477 | | | (3,917 | ) | | | (4,696 | ) | | | (5,583 | ) |
| | | | | |
Selected Operating Data: | | | | | | | | | | | | | | | | | |
| | | | | |
Condensed Tax Equivalent Income Statement | | | | | | | | | | | | | | | | | |
Interest and dividend income | | $ | 37,365 | | 38,845 | | $ | 39,035 | | | $ | 37,986 | | | $ | 37,265 | |
Tax equivalent adjustment* | | | 918 | | 880 | | | 832 | | | | 807 | | | | 756 | |
Interest expense | | | 14,124 | | 16,471 | | | 16,792 | | | | 15,655 | | | | 16,797 | |
| | | | | | | | | | | | | | | | | |
Net interest income (tax equivalent) | | | 24,159 | | 23,254 | | | 23,075 | | | | 23,138 | | | | 21,224 | |
Provision for loan losses | | | 3,000 | | 700 | | | 600 | | | | 400 | | | | 400 | |
| | | | | | | | | | | | | | | | | |
Net interest income after provision for loan losses | | | 21,159 | | 22,554 | | | 22,475 | | | | 22,738 | | | | 20,824 | |
Non-interest income | | | 5,753 | | 4,959 | | | 4,918 | | | | 4,988 | | | | 4,905 | |
Non-interest expense | | | 18,924 | | 18,122 | | | 19,045 | | | | 19,050 | | | | 18,571 | |
| | | | | | | | | | | | | | | | | |
Income before income tax expense | | | 7,988 | | 9,391 | | | 8,348 | | | | 8,676 | | | | 7,158 | |
Income tax expense (tax equivalent) | | | 2,905 | | 3,497 | | | 3,200 | | | | 3,240 | | | | 2,726 | |
| | | | | | | | | | | | | | | | | |
Net income | | $ | 5,083 | | 5,894 | | $ | 5,148 | | | $ | 5,436 | | | $ | 4,432 | |
| | | | | | | | | | | | | | | | | |
| (1) | Does not reflect allowance for loan losses of $21,413, $20,325, $20,389, $20,699 and $20,435. |
| * | Tax exempt income assumed at a 35% federal rate. |
| | |
| Provident New York Bancorp Press Release cont. | | 8 |
| | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | |
| | | 03/31/08 | | | 12/31/07 | | | 09/30/07 | | | 06/30/07 | | | 03/31/07 | |
Performance Ratios (annualized) | | | | | | | | | | | | | | | | | | | |
Return on Average Assets | | | 0.73 | % | | 0.84 | % | | | 0.73 | % | | | 0.78 | % | | | 0.64 | % |
Return on Average Equity | | | 5.04 | % | | 5.80 | % | | | 5.09 | % | | | 5.32 | % | | | 4.37 | % |
Non-Interest Income to Average Assets | | | 0.82 | % | | 0.71 | % | | | 0.70 | % | | | 0.72 | % | | | 0.71 | % |
Non-Interest Expense to Average Assets | | | 2.71 | % | | 2.59 | % | | | 2.71 | % | | | 2.75 | % | | | 2.70 | % |
Operating Efficiency | | | 65.3 | % | | 66.3 | % | | | 70.1 | % | | | 69.7 | % | | | 73.2 | % |
| | | | | |
Analysis of Net Interest Income | | | | | | | | | | | | | | | | | | | |
Yield on: | | | | | | | | | | | | | | | | | | | |
Loans | | | 6.63 | % | | 7.00 | % | | | 7.18 | % | | | 7.15 | % | | | 7.11 | % |
Investment Securities- Tax Equivalent | | | 5.19 | % | | 5.12 | % | | | 4.94 | % | | | 4.87 | % | | | 4.80 | % |
Earning Assets- Tax Equivalent | | | 6.17 | % | | 6.39 | % | | | 6.43 | % | | | 6.37 | % | | | 6.26 | % |
Cost of: | | | | | | | | | | | | | | | | | | | |
Interest Bearing Deposits | | | 2.34 | % | | 2.66 | % | | | 2.70 | % | | | 2.60 | % | | | 2.61 | % |
Borrowings | | | 3.78 | % | | 4.50 | % | | | 4.76 | % | | | 4.50 | % | | | 5.07 | % |
Interest Bearing Liabilities | | | 2.82 | % | | 3.27 | % | | | 3.33 | % | | | 3.16 | % | | | 3.39 | % |
Net Interest Tax Equivalent: | | | | | | | | | | | | | | | | | | | |
Net Interest Rate Spread- Tax Equivalent Basis | | | 3.35 | % | | 3.12 | % | | | 3.10 | % | | | 3.21 | % | | | 2.88 | % |
Net Interest Margin- Tax Equivalent Basis | | | 3.89 | % | | 3.74 | % | | | 3.72 | % | | | 3.80 | % | | | 3.50 | % |
| | | | | |
Capital Information Data | | | | | | | | | | | | | | | | | | | |
Tier 1 Leverage Ratio- Bank Only | | | 8.14 | % | | 8.22 | % | | | 8.07 | % | | | 8.16 | % | | | 8.55 | % |
Tier 1 Risk-Based Capital- Bank Only | | | 215,420 | | | 215,920 | | | | 212,497 | | | | 212,906 | | | | 224,694 | |
Total Risk-Based Capital- Bank Only | | | 236,833 | | | 236,245 | | | | 232,886 | | | | 233,605 | | | | 245,129 | |
Tangible Capital Consolidated | | | 237,316 | | | 231,186 | | | | 233,662 | | | | 230,175 | | | | 240,269 | |
Tangible Capital as a % of Tangible | | | | | | | | | | | | | | | | | | | |
Assets Consolidated | | | 8.95 | % | | 8.80 | % | | | 8.88 | % | | | 8.75 | % | | | 9.14 | % |
Shares Outstanding | | | 40,086,491 | | | 40,125,457 | | | | 41,230,618 | | | | 41,666,538 | | | | 42,376,905 | |
Shares Repurchased Per Stock | | | | | | | | | | | | | | | | | | | |
Repurchase Program | | | 147,514 | | | 1,116,800 | | | | 460,490 | | | | 757,500 | | | | 354,400 | |
Basic weighted common shares outstanding | | | 38,847,528 | | | 39,469,995 | | | | 40,101,720 | | | | 40,722,093 | | | | 41,144,852 | |
Diluted common shares outstanding | | | 39,225,319 | | | 39,805,026 | | | | 40,543,035 | | | | 41,223,958 | | | | 41,672,245 | |
Per Common Share: | | | | | | | | | | | | | | | | | | | |
Basic Earnings | | $ | 0.13 | | | 0.15 | | | $ | 0.13 | | | $ | 0.13 | | | $ | 0.11 | |
Diluted Earnings | | | 0.13 | | | 0.15 | | | | 0.13 | | | | 0.13 | | | | 0.11 | |
Dividends Paid | | | 0.06 | | | 0.06 | | | | 0.05 | | | | 0.05 | | | | 0.05 | |
Book Value | | | 10.18 | | | 10.02 | | | | 9.82 | | | | 9.66 | | | | 9.74 | |
Tangible Book Value | | | 5.92 | | | 5.76 | | | | 5.67 | | | | 5.52 | | | | 5.67 | |
| | | | | |
Asset Quality Measurements | | | | | | | | | | | | | | | | | | | |
Non-performing loans (NPLs): non-accrual | | | 9,014 | | | 6,053 | | | | 3,509 | | | | 3,956 | | | | 4,840 | |
Non-performing loans (NPLs): still accruing | | | 4,536 | | | 3,317 | | | | 3,749 | | | | 3,716 | | | | 3,484 | |
Non-performing assets (NPAs) | | | 13,688 | | | 9,507 | | | | 7,397 | | | | 8,377 | | | | 8,411 | |
Net Charge-offs | | | 1,912 | | | 764 | | | | 910 | | | | 136 | | | | 401 | |
Net Charge-offs as % of average loans (annualized) | | | 0.46 | % | | 0.19 | % | | | 0.22 | % | | | 0.03 | % | | | 0.10 | % |
NPLs as % of total loans | | | 0.82 | % | | 0.57 | % | | | 0.44 | % | | | 0.48 | % | | | 0.53 | % |
NPAs as % of total assets | | | 0.48 | % | | 0.34 | % | | | 0.26 | % | | | 0.30 | % | | | 0.30 | % |
Allowance for loan losses as % of NPLs | | | 158 | % | | 217 | % | | | 281 | % | | | 270 | % | | | 245 | % |
Allowance for loan losses as % of total loans | | | 1.29 | % | | 1.23 | % | | | 1.26 | % | | | 1.28 | % | | | 1.31 | % |
