Exhibit 99
PRESS RELEASE OF PROVIDENT NEW YORK BANCORP
Exhibit 99
| | |
| FOR IMMEDIATE RELEASE | | Stock Symbol: PBNY |
| October 23, 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: 27.1% INCREASE IN YEARLY EPS TO $0.61 AND
30.8% QUARTERLY EPS TO $0.17.
MONTEBELLO, NY – October 23, 2008 – Provident New York Bancorp (Nasdaq-Global Select Market: PBNY), the parent company of Provident Bank, today announced fourth quarter results for the fiscal year ended September 30, 2008. Net income for the quarter was $6.5 million, or $0.17 per diluted share, compared to net income of $5.1 million, or $0.13 per diluted share for the fourth quarter of fiscal 2007. For the year ended September 30, 2008, net income was $23.8 million or $0.61 per diluted share, compared to $19.6 million or $0.48 per diluted share in fiscal 2007. This represents increases of 21.1% and 27.1% respectively, over the year ended September 30, 2007.
Highlights for the quarter include:
| • | | Net interest margin on a fully tax-equivalent basis was 4.16% for the fourth quarter of fiscal 2008, as compared to 3.72% for the fourth quarter of fiscal 2007, and 4.04%, which represents a 12 basis point increase over the linked quarter ended June 30, 2008. |
| • | | The Company achieved 16% and 12% deposit growth over fiscal year-end 2007 and the third quarter of fiscal 2008, respectively. Transaction accounts of $820.8 million have grown 56% since September 30, 2007 due in large part to short-term seasonal municipal deposits of $242 million. |
| • | | Loans grew $93.5 million or 5.7% over year-end 2007, mainly in the Commercial sector. |
| • | | Non-interest expense increased by 2.4% compared to the fourth quarter of 2007 while revenues (net interest income plus non-interest income) grew 13.6%. |
| • | | The quarter’s efficiency ratio continued to improve from 70.1% in the fourth quarter of fiscal 2007 to 63.2% in the current quarter. |
| • | | Net charge-offs for the quarter were $1.0 million, compared to $812,000 for the linked quarter, and $910,000 for the fourth quarter of fiscal 2007. |
President’s Comments
George Strayton, President and CEO, commented: “I’m pleased to report that through the challenging economic environment, our proven business model continued to perform well. Provident’s earnings were up significantly. Our ongoing disciplined management of interest expense and asset quality, coupled with our loan growth, enabled us to finish the year with a net interest margin over 4%. In
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| Provident New York Bancorp Press Release cont. | | 7 |
keeping with the best interests of our customers and shareholders, Provident does not originate sub prime residential mortgage loans and did not hold any GSE preferred stock that needs to be written down. With our commercial loan growth up 8.3%, coupled with small business charge-offs ,we increased loan loss provisions over the previous year by $5.4 million to improve Loan Loss Reserves at 1.33% of total loans. In addition, solid fee income, coupled with greater expense control, led to an improvement in our efficiency ratio of 645 basis points compared to year-end 2007. In short, Provident’s conservative, community based approach to full-service banking and lending has enabled us to avoid the problems experienced by many large, national banks and Wall Street firms. We continue to be a solid bank with strong capital and asset quality”.
Net Interest Income and Margin
Fourth quarter fiscal 2008 compared with fourth quarter fiscal 2007
Net interest income was $25.5 million for the fourth quarter of fiscal 2008, a $3.3 million increase from the same quarter of fiscal 2007. The net interest margin on a tax-equivalent basis was 4.16% for the fourth quarter of fiscal 2008, compared to 3.72% for the prior year’s fourth quarter. Due to decreases in the federal funds target rate, the yield on loan balances declined 93 basis points. For the same period, the cost of interest-bearing deposits decreased 114 basis points to 1.54% and the cost of borrowings decreased 129 basis points to 3.5%. The tax-equivalent yield on investments increased 25 basis points compared to the same quarter in 2007.
Fourth quarter fiscal 2008 compared with linked quarter ended June 30, 2008
Net interest income increased $1.3 million from the quarter ended June 30, 2008. The tax-equivalent net interest margin increased 12 basis points from 4.04% for the quarter ended June 30, 2008. As a result of the recent reductions in the federal funds target rate, the tax-equivalent yield on average interest-earning assets decreased by 3 basis points compared to the quarter ended June 30, 2008. The cost of average interest-bearing liabilities decreased 19 basis points from the same linked quarter end. We attribute a substantial portion of this decrease to a continuing disciplined approach to pricing interest-bearing deposits.
Year-to-date comparison of fiscal 2008 to fiscal 2007
For the year ended September 30, 2008, net interest income increased $10.6 million compared to 2007, with the tax-equivalent net interest margin increasing from 3.57% to 3.96%.
Non-Interest Income
Fourth quarter fiscal 2008 compared with fourth quarter fiscal 2007
Non-interest income increased 7.9% to $5.3 million from the fourth quarter of fiscal 2007. Deposit service charges and fees increased $290,000 or 9.8%.
Fourth quarter fiscal 2008 compared with linked quarter ended June 30, 2008
Non-interest income increased 5.6% mainly due to deposit service charges and fees. All categories of non-interest income except gains on securities increased over the linked quarter. There were no sales of securities during the fourth quarter of 2008.
Year-to-date comparison of fiscal 2008 to fiscal 2007
Non-interest income increased 6% compared to the full year 2007. Excluding security gains, the largest increases were seen in deposit service charges and fees and investment management fees. Declines were seen in title insurance fees, bank owned life insurance (due to a death benefit received in 2007) and “other” non-interest income (due to an IRS interest refund and receipt of fees applicable to exiting the student loan business in 2007). Gains on the sale of investment securities increased substantially in 2008 as the Company recorded a $983,000 gain.
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| Provident New York Bancorp Press Release cont. | | 8 |
Non-Interest Expense
Fourth quarter fiscal 2008 compared with fourth quarter fiscal 2007
Non-interest expense increased 2.4% over the fourth quarter of fiscal 2007. The primary reason for the increase was compensation and employee benefits. Partially offsetting this were lower costs due to the maturity of the Company’s first-step ESOP loan in December 2007 and advertising and promotion expense. Compensation and employee benefits increased due to employee related benefits, higher incentive expense and additional employees hired, as the Company added resources to its municipal bank business and opened a branch location in Tarrytown, Westchester County, N.Y. Occupancy expense increased as the Company invested in branch relocations in 2008.
Fourth quarter fiscal 2008 compared with linked quarter ended June 30, 2008
On a quarter-to-quarter basis, non-interest expense increased by 2.9% with increases seen in compensation and benefits, ATM / debit card and occupancy expense, which were offset by declines in advertising and promotion, professional fees, and data and check processing.
Year-to-date comparison of fiscal 2008 to fiscal 2007
Non-interest expense increased by $910,000, or 1.2%, over year-to-date 2007, primarily due to compensation and benefits, and occupancy expense from increases in rental costs and the costs of branch relocations and closures. These categories were partially offset by decreases in stock based compensation (the ESOP loan maturity), professional fees, and advertising and promotion.
Income Taxes
The Company’s effective tax rate was 29.7% for the fourth quarter of fiscal 2008, compared to 31.5% for the same period last year. The decrease was due to increased investment in tax-exempt securities and the maturity of the first-step ESOP loan, which was primarily non-deductible expense. The Company’s effective tax rate for the linked quarter ended June 30, 2008 was 28.8%. The effective tax rate for fiscal year 2008 was 29.4% compared to 30.4% for fiscal 2007.
Key Balance Sheet Changes at September 30, 2008 vs. September 30, 2007
| | • | | Gross loans grew $93.5 million to $1.7 billion, largely due to an 8.3% increase in commercial loans and a 2.5% increase in residential mortgage loans. |
| | • | | Securities increased $2.3 million to $834.7 million, as the Company maintained collateral for municipal deposits. |
| | • | | Period-end deposits increased $276 million at September 30, 2008, as compared to September 30, 2007, primarily due to increases in transaction accounts of $294.5 million or 56%, of which $242.3 million is due to short-term seasonal municipal deposits. |
Capital
Capital decreased $5.9 million from September 30, 2007 to $399.2 million at September 30, 2008, due to purchases of treasury stock. Treasury stock repurchases were minimal during the fourth quarter of fiscal 2008 and totaled 1.6 million shares for the 2008 fiscal year, at a cost of $20.2 million. These purchases were partially offset by increases in the Company’s retained earnings of $14.3 million and stock based compensation vesting of $5.1 million. A decline in other comprehensive income (loss) of $5.4 million, added to the overall decrease in capital. As of September 30, 2008, 1,165,901 shares remain available for repurchase under the Company’s current stock repurchase program. Capital ratios remained strong with a Tier 1 capital ratio exceeding 8%.
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| Provident New York Bancorp Press Release cont. | | 9 |
Credit Quality
Net charge-offs for the quarter were $1.0 million compared to $812,000 in the prior linked quarter and $910,000 for the quarter ended September 30, 2007. Net charge-offs for the full year were $4.5 million or 0.27% of the average loan portfolio, compared to $1.8 million or 0.12% for the year ended September 30, 2007. Losses continue to be concentrated in the credit-scored community business loan portfolio. Net charge-offs in the community business loan portfolio for the fourth quarter were $996,000 on average outstandings of $102.8 million. During the quarter the Company provided $2.1 million in loan loss provisions, which was $1.1 million in excess of net charge-offs. This resulted in an increase in the allowance for loan losses to $23.1 million, or 1.33% of loans outstanding, and 137% of non-performing loans. The primary reasons for increasing the allowance for loan losses were growth in the commercial and industrial and construction loan portfolios and the general economic slowdown. For the year ended September 30, 2008, provisions for loan losses were $7.2 million compared to $1.8 million for the year ended September 30, 2007. Nonperforming loans increased $2.6 million in the fourth quarter to $16.9 million compared to June 30, 2008, primarily in the area of real estate development.
Additional Information
The Company does not hold any preferred stock of either FNMA or FHLMC (Fannie Mae or Freddie Mac) and currently has 120 shares (with an original cost of less than $1,000) of FNMA common stock. The Company holds $30 million in Federal Home Loan Bank short-term debentures in its securities portfolio and holds $605.1 million in mortgage backed securities issued by FHLMC and FNMA and approximately $12.8 million in private label CMO pass through securities.
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.
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| Provident New York Bancorp Press Release cont. | | 10 |
Provident New York Bancorp and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION
(unaudited, in thousands, except share and per share data)
| | | | | | | | | | | | |
| | | September 30,
2008 | | | September 30,
2007 | | | June 30,
2008 | |
Assets: | | | | | | | | | | | | |
Cash and due from banks | | $ | 125,810 | | | $ | 47,291 | | | $ | 46,208 | |
Total securities | | | 834,701 | | | | 832,443 | | | | 818,603 | |
Loans held for sale | | | 189 | | | | — | | | | — | |
Loans: | | | | | | | | | | | | |
One- to four-family residential mortgage loans | | | 513,381 | | | | 500,825 | | | | 510,832 | |
Commercial real estate, commercial business and construction loans | | | 969,432 | | | | 895,233 | | | | 936,567 | |
Consumer loans | | | 248,740 | | | | 242,000 | | | | 240,452 | |
| | | | | | | | | | | | |
Total loans, gross | | | 1,731,553 | | | | 1,638,058 | | | | 1,687,851 | |
Allowance for loan losses | | | (23,101 | ) | | | (20,389 | ) | | | (22,001 | ) |
| | | | | | | | | | | | |
Total loans, net | | | 1,708,452 | | | | 1,617,669 | | | | 1,665,850 | |
Federal Home Loan Bank stock, at cost | | | 28,675 | | | | 32,801 | | | | 31,823 | |
Premises and equipment, net | | | 36,716 | | | | 30,079 | | | | 34,625 | |
Goodwill | | | 160,861 | | | | 161,154 | | | | 160,861 | |
Other amortizable intangibles | | | 8,329 | | | | 11,041 | | | | 8,966 | |
Bank owned life insurance | | | 47,650 | | | | 40,818 | | | | 47,135 | |
Other assets | | | 32,988 | | | | 28,803 | | | | 36,483 | |
| | | | | | | | | | | | |
Total assets | | $ | 2,984,371 | | | $ | 2,802,099 | | | $ | 2,850,554 | |
| | | | | | | | | | | | |
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Liabilities: | | | | | | | | | | | | |
Deposits | | | | | | | | | | | | |
Demand deposits | | $ | 487,890 | | | $ | 363,731 | | | $ | 384,381 | |
NOW deposits | | | 332,904 | | | | 162,537 | | | | 199,681 | |
| | | | | | | | | | | | |
Total transaction accounts | | | 820,794 | | | | 526,268 | | | | 584,062 | |
Savings | | | 335,986 | | | | 346,430 | | | | 351,431 | |
Money market deposits | | | 306,504 | | | | 277,793 | | | | 300,919 | |
Certificates of deposit | | | 525,913 | | | | 563,193 | | | | 539,308 | |
| | | | | | | | | | | | |
Total deposits | | | 1,989,197 | | | | 1,713,684 | | | | 1,775,720 | |
Borrowings | | | 566,008 | | | | 661,242 | | | | 635,596 | |
Mortgage escrow funds and other | | | 30,008 | | | | 22,084 | | | | 38,097 | |
| | | | | | | | | | | | |
Total liabilities | | | 2,585,213 | | | | 2,397,010 | | | | 2,449,413 | |
Stockholders’ equity | | | 399,158 | | | | 405,089 | | | | 401,141 | |
| | | | | | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 2,984,371 | | | $ | 2,802,099 | | | $ | 2,850,554 | |
| | | | | | | | | | | | |
Shares of common stock outstanding at period end | | | 39,815,213 | | | | 41,230,618 | | | | 39,839,335 | |
Book value per share | | $ | 10.03 | | | $ | 9.82 | | | $ | 10.07 | |
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| Provident New York Bancorp Press Release cont. | | 11 |
Provident New York Bancorp and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Unaudited, in thousands, except share and per share data)
| | | | | | | | | | | | | | | | | |
| | | Quarter Ended September 30, | | | Quarter
Ended
June 30, 2008 | | Year to Date Ended September 30, | |
| | | 2008 | | 2007 | | | | 2008 | | 2007 | |
Interest and dividend income: | | | | | | | | | | | | | | | | | |
Loans and loan fees | | $ | 26,532 | | $ | 29,092 | | | $ | 25,630 | | $ | 107,633 | | $ | 109,940 | |
Securities | | | 9,656 | | | 9,340 | | | | 9,774 | | | 38,779 | | | 39,264 | |
Other earning assets | | | 518 | | | 603 | | | | 662 | | | 2,570 | | | 2,422 | |
| | | | | | | | | | | | | | | | | |
| | | 36,706 | | | 39,035 | | | | 36,066 | | | 148,982 | | | 151,626 | |
Interest expense: | | | | | | | | | | | | | | | | | |
Deposits | | | 5,449 | | | 9,454 | | | | 6,187 | | | 28,344 | | | 36,439 | |
Borrowings | | | 5,720 | | | 7,338 | | | | 5,691 | | | 25,298 | | | 30,449 | |
| | | | | | | | | | | | | | | | | |
Total interest expense | | | 11,169 | | | 16,792 | | | | 11,878 | | | 53,642 | | | 66,888 | |
| | | | | | | | | | | | | | | | | |
Net interest income | | | 25,537 | | | 22,243 | | | | 24,188 | | | 95,340 | | | 84,738 | |
Provision for loan losses | | | 2,100 | | | 600 | | | | 1,400 | | | 7,200 | | | 1,800 | |
| | | | | | | | | | | | | | | | | |
Net interest income after provision for loan losses | | | 23,437 | | | 21,643 | | | | 22,788 | | | 88,140 | | | 82,938 | |
Non-interest income: | | | | | | | | | | | | | | | | | |
Deposit fees and service charges | | | 3,246 | | | 2,956 | | | | 3,100 | | | 12,429 | | | 11,434 | |
Net gain on sales of securities | | | — | | | (11 | ) | | | 22 | | | 983 | | | (8 | ) |
Title insurance fees | | | 300 | | | 326 | | | | 274 | | | 919 | | | 1,181 | |
Bank owned life insurance | | | 515 | | | 431 | | | | 455 | | | 1,832 | | | 2,044 | |
Investment management fees | | | 770 | | | 715 | | | | 750 | | | 3,012 | | | 2,821 | |
Other | | | 475 | | | 501 | | | | 423 | | | 1,867 | | | 2,373 | |
| | | | | | | | | | | | | | | | | |
Total non-interest income | | | 5,306 | | | 4,918 | | | | 5,024 | | | 21,042 | | | 19,845 | |
Non-interest expense: | | | | | | | | | | | | | | | | | |
Compensation and benefits | | | 10,109 | | | 8,973 | | | | 9,245 | | | 37,045 | | | 33,490 | |
Stock-based compensation plans | | | 916 | | | 1,420 | | | | 973 | | | 3,809 | | | 5,706 | |
Occupancy and office operations | | | 3,125 | | | 2,765 | | | | 3,090 | | | 12,434 | | | 11,436 | |
Advertising and promotion | | | 710 | | | 1,212 | | | | 933 | | | 3,338 | | | 4,237 | |
Professional fees | | | 751 | | | 851 | | | | 813 | | | 3,339 | | | 3,833 | |
Data and check processing | | | 638 | | | 672 | | | | 646 | | | 2,551 | | | 2,621 | |
Amortization of intangible assets | | | 611 | | | 716 | | | | 636 | | | 2,599 | | | 3,039 | |
ATM/debit card expense | | | 524 | | | 516 | | | | 456 | | | 1,936 | | | 1,881 | |
Other | | | 2,115 | | | 1,920 | | | | 2,163 | | | 8,449 | | | 8,347 | |
| | | | | | | | | | | | | | | | | |
Total non-interest expense | | | 19,499 | | | 19,045 | | | | 18,955 | | | 75,500 | | | 74,590 | |
Income before income tax expense | | | 9,244 | | | 7,516 | | | | 8,857 | | | 33,682 | | | 28,193 | |
| | | | | | | | | | | | | | | | | |
Income tax expense | | | 2,749 | | | 2,368 | | | | 2,551 | | | 9,904 | | | 8,566 | |
| | | | | | | | | | | | | | | | | |
Net income | | $ | 6,495 | | $ | 5,148 | | | $ | 6,306 | | $ | 23,778 | | $ | 19,627 | |
| | | | | | | | | | | | | | | | | |
Per common share: | | | | | | | | | | | | | | | | | |
Basic earnings | | $ | 0.17 | | $ | 0.13 | | | $ | 0.16 | | $ | 0.61 | | $ | 0.48 | |
Diluted earnings | | | 0.17 | | | 0.13 | | | | 0.16 | | | 0.61 | | | 0.48 | |
Dividends declared | | | 0.06 | | | 0.05 | | | | 0.06 | | | 0.24 | | | 0.20 | |
Weighted average common shares: | | | | | | | | | | | | | | | | | |
Basic | | | 38,589,361 | | | 40,101,720 | | | | 38,719,917 | | | 38,907,372 | | | 40,782,643 | |
Diluted | | | 38,893,860 | | | 40,543,035 | | | | 39,110,353 | | | 39,226,641 | | | 41,266,816 | |
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| Provident New York Bancorp Press Release cont. | | 12 |
Selected Financial Condition Data:
| | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | |
| (in thousands except share and per share data) | | 09/30/08 | | | 06/30/08 | | | 03/31/08 | | 12/31/07 | | 09/30/07 | |
| | | (In thousands) | |
End of Period | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 2,984,371 | | | $ | 2,850,554 | | | $ | 2,823,506 | | $ | 2,799,342 | | $ | 2,802,099 | |
Loans, gross (1) | | | 1,731,553 | | | | 1,687,851 | | | | 1,653,638 | | | 1,655,437 | | | 1,638,058 | |
Securities available for sale | | | 791,688 | | | | 777,161 | | | | 801,784 | | | 780,714 | | | 794,997 | |
Securities held to maturity | | | 43,013 | | | | 41,442 | | | | 35,484 | | | 35,573 | | | 37,446 | |
Bank owned life insurance | | | 47,650 | | | | 47,135 | | | | 41,680 | | | 41,252 | | | 40,818 | |
Goodwill | | | 160,861 | | | | 160,861 | | | | 161,214 | | | 161,154 | | | 161,154 | |
Other amortizable intangibles | | | 8,329 | | | | 8,966 | | | | 9,633 | | | 10,324 | | | 11,041 | |
Other non-earning assets | | | 67,318 | | | | 71,108 | | | | 63,906 | | | 58,033 | | | 58,882 | |
Deposits | | | 1,989,197 | | | | 1,775,720 | | | | 1,722,101 | | | 1,672,538 | | | 1,713,684 | |
Borrowings | | | 566,008 | | | | 635,596 | | | | 664,115 | | | 686,508 | | | 661,242 | |
Equity | | | 399,158 | | | | 401,141 | | | | 408,163 | | | 401,923 | | | 405,089 | |
Average Balances | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 2,867,613 | | | $ | 2,822,885 | | | $ | 2,813,448 | | $ | 2,780,360 | | $ | 2,783,640 | |
Loans, gross: | | | | | | | | | | | | | | | | | | |
Real estate- residential mortgage | | | 513,016 | | | | 510,383 | | | | 500,930 | | | 499,915 | | | 500,261 | |
Real estate- commercial mortgage | | | 552,930 | | | | 528,308 | | | | 530,267 | | | 537,440 | | | 539,618 | |
Real estate- construction & land development | | | 159,698 | | | | 150,900 | | | | 153,816 | | | 152,615 | | | 144,615 | |
Commercial and industrial | | | 244,537 | | | | 229,122 | | | | 219,782 | | | 210,425 | | | 205,832 | |
Consumer loans | | | 241,776 | | | | 240,488 | | | | 243,552 | | | 243,456 | | | 238,073 | |
Loans total (1) | | | 1,711,957 | | | | 1,659,201 | | | | 1,648,347 | | | 1,643,851 | | | 1,628,399 | |
Securities (taxable) | | | 629,322 | | | | 653,292 | | | | 661,947 | | | 644,336 | | | 660,937 | |
Securities (non-taxable) | | | 183,115 | | | | 177,933 | | | | 168,968 | | | 164,144 | | | 156,328 | |
Total earning assets | | | 2,535,187 | | | | 2,503,004 | | | | 2,494,913 | | | 2,467,655 | | | 2,458,422 | |
Non earning assets | | | 332,426 | | | | 319,881 | | | | 318,535 | | | 312,705 | | | 325,218 | |
Non-interest bearing checking | | | 379,679 | | | | 357,515 | | | | 370,843 | | | 357,246 | | | 348,466 | |
Interest bearing NOW accounts | | | 198,621 | | | | 189,629 | | | | 169,187 | | | 143,396 | | | 165,166 | |
Total transaction accounts | | | 578,300 | | | | 547,144 | | | | 540,030 | | | 500,642 | | | 513,631 | |
Savings (including mortgage escrow funds) | | | 371,499 | | | | 364,763 | | | | 342,412 | | | 348,670 | | | 380,749 | |
Money market deposits | | | 302,205 | | | | 311,120 | | | | 267,310 | | | 259,931 | | | 266,714 | |
Certificates of deposit | | | 539,269 | | | | 545,413 | | | | 561,935 | | | 581,204 | | | 585,115 | |
Total deposits and mortgage escrow | | | 1,791,273 | | | | 1,768,440 | | | | 1,711,687 | | | 1,690,447 | | | 1,746,209 | |
Total interest bearing deposits | | | 1,411,594 | | | | 1,410,925 | | | | 1,340,844 | | | 1,333,201 | | | 1,385,504 | |
Borrowings | | | 655,281 | | | | 629,325 | | | | 675,150 | | | 665,380 | | | 612,274 | |
Equity | | | 402,314 | | | | 405,692 | | | | 405,326 | | | 403,146 | | | 401,617 | |
Other comprehensive income / (loss) (SFAS 115), reflected in stockholders’ equity | | | (5,892 | ) | | | (2,708 | ) | | | 5,638 | | | 1,477 | | | (3,917 | ) |
Selected Operating Data: | | | | | | | | | | | | | | | | | | |
Condensed Tax Equivalent Income Statement | | | | | | | | | | | | | | | | | | |
Interest and dividend income | | $ | 36,706 | | | $ | 36,066 | | | $ | 37,365 | | $ | 38,845 | | $ | 39,035 | |
Tax equivalent adjustment* | | | 951 | | | | 929 | | | | 918 | | | 880 | | | 832 | |
Interest expense | | | 11,169 | | | | 11,878 | | | | 14,124 | | | 16,471 | | | 16,792 | |
| | | | | | | | | | | | | | | | | | |
Net interest income (tax equivalent) | | | 26,488 | | | | 25,117 | | | | 24,159 | | | 23,254 | | | 23,075 | |
Provision for loan losses | | | 2,100 | | | | 1,400 | | | | 3,000 | | | 700 | | | 600 | |
| | | | | | | | | | | | | | | | | | |
Net interest income after provision for loan losses | | | 24,388 | | | | 23,717 | | | | 21,159 | | | 22,554 | | | 22,475 | |
Non-interest income | | | 5,306 | | | | 5,024 | | | | 5,753 | | | 4,959 | | | 4,918 | |
Non-interest expense | | | 19,499 | | | | 18,955 | | | | 18,924 | | | 18,122 | | | 19,045 | |
| | | | | | | | | | | | | | | | | | |
Income before income tax expense | | | 10,195 | | | | 9,786 | | | | 7,988 | | | 9,391 | | | 8,348 | |
Income tax expense (tax equivalent)* | | | 3,700 | | | | 3,480 | | | | 2,905 | | | 3,497 | | | 3,200 | |
| | | | | | | | | | | | | | | | | | |
Net income | | $ | 6,495 | | | $ | 6,306 | | | $ | 5,083 | | $ | 5,894 | | $ | 5,148 | |
| | | | | | | | | | | | | | | | | | |
| (1) | Does not reflect allowance for loan losses of $23,101, $22,001, $21,413, $20,325 and $20,389 |
| * | Tax exempt income assumed at a 35% federal rate |
| | |
| Provident New York Bancorp Press Release cont. | | 13 |
| | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | |
| | | 09/30/08 | | | 06/30/08 | | | 03/31/08 | | | 12/31/07 | | | 09/30/07 | |
Performance Ratios (annualized) | | | | | | | | | | | | | | | | | | | | |
Return on Average Assets | | | 0.90 | % | | | 0.90 | % | | | 0.73 | % | | | 0.84 | % | | | 0.73 | % |
Return on Average Equity | | | 6.42 | % | | | 6.25 | % | | | 5.04 | % | | | 5.80 | % | | | 5.09 | % |
Non-Interest Income to Average Assets | | | 0.74 | % | | | 0.72 | % | | | 0.82 | % | | | 0.71 | % | | | 0.70 | % |
Non-Interest Expense to Average Assets | | | 2.71 | % | | | 2.70 | % | | | 2.71 | % | | | 2.59 | % | | | 2.71 | % |
Operating Efficiency | | | 63.2 | % | | | 64.9 | % | | | 65.3 | % | | | 66.3 | % | | | 70.1 | % |
| | | | | |
Analysis of Net Interest Income | | | | | | | | | | | | | | | | | | | | |
Yield on: | | | | | | | | | | | | | | | | | | | | |
Loans | | | 6.25 | % | | | 6.30 | % | | | 6.63 | % | | | 7.00 | % | | | 7.18 | % |
Investment Securities- Tax Equivalent | | | 5.19 | % | | | 5.18 | % | | | 5.19 | % | | | 5.12 | % | | | 4.94 | % |
Earning Assets- Tax Equivalent | | | 5.91 | % | | | 5.94 | % | | | 6.17 | % | | | 6.39 | % | | | 6.43 | % |
Cost of: | | | | | | | | | | | | | | | | | | | | |
Interest Bearing Deposits | | | 1.54 | % | | | 1.76 | % | | | 2.34 | % | | | 2.66 | % | | | 2.68 | % |
Borrowings | | | 3.47 | % | | | 3.64 | % | | | 3.78 | % | | | 4.50 | % | | | 4.76 | % |
Interest Bearing Liabilities | | | 2.15 | % | | | 2.34 | % | | | 2.82 | % | | | 3.27 | % | | | 3.33 | % |
| | | | | |
Net Interest Tax Equivalent: | | | | | | | | | | | | | | | | | | | | |
Net Interest Rate Spread- Tax Equivalent Basis | | | 3.76 | % | | | 3.60 | % | | | 3.35 | % | | | 3.12 | % | | | 3.10 | % |
Net Interest Margin- Tax Equivalent Basis | | | 4.16 | % | | | 4.04 | % | | | 3.89 | % | | | 3.74 | % | | | 3.72 | % |
| | | | | |
Capital Information Data | | | | | | | | | | | | | | | | | | | | |
Tier 1 Leverage Ratio- Bank Only | | | 8.01 | % | | | 8.32 | % | | | 8.14 | % | | | 8.22 | % | | | 8.07 | % |
Tier 1 Risk-Based Capital- Bank Only | | | 226,054 | | | | 223,391 | | | | 215,420 | | | | 215,920 | | | | 212,497 | |
Total Risk-Based Capital- Bank Only | | | 249,155 | | | | 245,392 | | | | 236,833 | | | | 236,245 | | | | 232,886 | |
Tangible Capital Consolidated | | | 229,968 | | | | 231,314 | | | | 237,316 | | | | 231,186 | | | | 233,662 | |
Tangible Capital as a % of Tangible Assets Consolidated | | | 8.17 | % | | | 8.63 | % | | | 8.95 | % | | | 8.80 | % | | | 8.88 | % |
Shares Outstanding | | | 39,815,213 | | | | 39,839,335 | | | | 40,086,491 | | | | 40,125,457 | | | | 41,230,618 | |
Shares Repurchased during quarter | | | 34,122 | | | | 306,443 | | | | 147,514 | | | | 1,116,800 | | | | 460,490 | |
Basic weighted common shares outstanding | | | 38,589,361 | | | | 38,719,917 | | | | 38,847,528 | | | | 39,469,995 | | | | 40,101,720 | |
Diluted common shares outstanding | | | 38,893,860 | | | | 39,110,353 | | | | 39,214,041 | | | | 39,805,026 | | | | 40,543,035 | |
Per Common Share: | | | | | | | | | | | | | | | | | | | | |
Basic Earnings | | $ | 0.17 | | | $ | 0.16 | | | $ | 0.13 | | | $ | 0.15 | | | $ | 0.13 | |
Diluted Earnings | | | 0.17 | | | | 0.16 | | | | 0.13 | | | | 0.15 | | | | 0.13 | |
Dividends Paid | | | 0.06 | | | | 0.06 | | | | 0.06 | | | | 0.06 | | | | 0.05 | |
Book Value | | | 10.03 | | | | 10.07 | | | | 10.18 | | | | 10.02 | | | | 9.82 | |
Tangible Book Value | | | 5.78 | | | | 5.81 | | | | 5.92 | | | | 5.76 | | | | 5.67 | |
| | | | | |
Asset Quality Measurements | | | | | | | | | | | | | | | | | | | | |
Non-performing loans (NPLs): non-accrual | | | 13,589 | | | | 9,595 | | | | 9,014 | | | | 6,053 | | | | 3,509 | |
Non-performing loans (NPLs): still accruing | | | 3,289 | | | | 4,647 | | | | 4,536 | | | | 3,317 | | | | 3,749 | |
Non-performing assets (NPAs) | | | 16,962 | | | | 14,380 | | | | 13,688 | | | | 9,507 | | | | 7,397 | |
Net Charge-offs | | | 1,000 | | | | 812 | | | | 1,912 | | | | 764 | | | | 910 | |
Net Charge-offs as % of average loans (annualized) | | | 0.23 | % | | | 0.20 | % | | | 0.46 | % | | | 0.19 | % | | | 0.22 | % |
NPLs as % of total loans | | | 0.97 | % | | | 0.84 | % | | | 0.82 | % | | | 0.57 | % | | | 0.44 | % |
NPAs as % of total assets | | | 0.57 | % | | | 0.50 | % | | | 0.48 | % | | | 0.34 | % | | | 0.26 | % |
Allowance for loan losses as % of NPLs | | | 137 | % | | | 154 | % | | | 158 | % | | | 217 | % | | | 281 | % |
Allowance for loan losses as % of total loans | | | 1.33 | % | | | 1.30 | % | | | 1.29 | % | | | 1.23 | % | | | 1.26 | % |
