MONTEBELLO, NY--(Marketwire - Apr 23, 2012) - Provident New York Bancorp (
President's Comments
Jack Kopnisky, President and CEO, commented, "In the second fiscal quarter we continued to see the impact of our growth strategy. We are seeing success in several areas as a result of our focus on strong, consistent execution of this strategy. We have now completed the hiring of five experienced teams in the New York City area, which are beginning to build a meaningful pipeline of high quality opportunities. We have also completed the restructuring of teams in our legacy markets, bringing our total number of commercial banking teams to thirteen. Our growth in deposits is strong, with an increase of $233.4 million or 10.9% between December 31, 2011 and March 31, 2012. Commercial loan growth also continues to be very strong up 16.3 percent year over year and 4.1 percent over the linked quarter.
"In addition, as part of our strategy, we have also made significant progress in our planned acquisition of Gotham Bank. We have filed all regulatory applications for approval of the Gotham acquisition, and have detailed project plans in place for the Gotham integration, which is expected during our fourth quarter of 2012.
"However, the quarter was not without challenges as we saw an increase in non-performing loans of $6.0 million due to continued movement within certain sectors such as our legacy ADC portfolio, which in part led to a provision of $2.9 million during the quarter. We continue to focus on the ADC portfolio and the systematic work-out of non-performing credits as appropriate."
Key items for the quarter
- Commercial loan originations were $129.1 million compared to $87.6 million for the same quarter last year and $186.7 million in the linked quarter.
- Net interest margin improved by 3 basis points over the linked quarter to 3.57 percent.
- Securities gains during the quarter were $1.7 million, after tax.
- Provisions for loan losses were $2.9 million for the quarter compared to $2.0 million for the linked quarter, and $2.1 million for the same quarter last year.
Net Interest Income and Margin
Second quarter fiscal 2012 compared with second quarter fiscal 2011
Net interest income was $23.9 million for the second quarter of fiscal 2012, up $1.4 million from the same quarter of fiscal 2011. Reflecting the current interest rate environment, the tax-equivalent yield on investments decreased 10 basis points and loan yields were down 37 basis points compared to the second quarter fiscal 2011. As a result, the yield on interest-earning assets declined 29 basis points. The cost of deposits decreased 10 basis points to 0.21 percent, and the cost of borrowings decreased by 6 basis points to 3.52 percent. The resulting net interest margin on a tax-equivalent basis was 3.57 percent for the second quarter of fiscal 2012, compared to 3.68 percent for the same period a year ago.
Second quarter fiscal 2012 compared with linked quarter ended December 31, 2011
Net interest income for the quarter ended March 31, 2012 increased compared to the linked quarter ended December 31, 2011 by $667,000. The tax-equivalent net interest margin increased to 3.57 percent from 3.54 percent in the linked quarter. The high cash balance at the Federal Reserve depressed net interest margin by 10 basis points in the linked quarter compared to 2 basis points in the current quarter. The overall yield on loans decreased 10 basis points to 5.03 percent. The current quarter was negatively affected by declining yields on commercial real estate originations. The yield on the investment portfolio decreased 15 basis points. The overall yield on earning assets decreased 4 basis points to 4.22 percent. The cost of deposits declined 2 basis points, reflecting the already low level of deposit pricing. The average cost of borrowings decreased 13 basis points, as the Company's FDIC guaranteed borrowing matured in February 2012.
Noninterest Income
Second quarter fiscal 2012 compared with second quarter fiscal 2011
Noninterest income totaled $8.0 million for the second quarter, an increase of $2.2 million over the second quarter of fiscal 2011. The primary driver of the increase was higher gains on sales of securities of $2.2 million.
Second quarter fiscal 2012 compared with linked quarter ended December 31, 2011
Noninterest income increased $795,000 on a linked quarter basis, mainly due to higher gains on the sale of securities of $910,000.
Noninterest Expense
Second quarter fiscal 2012 compared with second quarter fiscal 2011
Noninterest expense decreased $501,000, when compared to the second quarter fiscal 2011. Lower occupancy expense was offset by increases in compensation and benefits during the quarter from new hires associated with the Company's expansion into the New York City market of $554,000. The second quarter of 2012 also included $299,000 of merger related expenses.
Second quarter fiscal 2012 compared with the linked quarter ended December 31, 2011
On a linked quarter basis, noninterest expense increased $569,000. Increases were seen primarily in compensation and benefits, due to the New York City expansion, offset in part by reductions in occupancy expenses.
Income Taxes
The Company recorded income tax expense for the second quarter of 2012 at an effective rate of 26 percent compared to 19.1 percent for the same period in fiscal 2011 due to higher BOLI income and larger tax-exempt municipal security interest relative to pre-tax income in fiscal 2011.
Credit Quality
Nonperforming loans increased to $52.0 million at March 31, 2012 from $45.9 million at December 31, 2011. While the net increase was spread amongst the commercial real estate, ADC and residential secured portfolios, negative migration in the ADC portfolio was the most significant. Net charge-offs for the quarter ended March 31, 2012 were $3.3 million compared to $1.6 million for the linked quarter and $3.0 million for the second quarter of fiscal 2011. Charge-offs resulted primarily from write-downs of residential and commercial real estate in the process of foreclosure. Further, the linked quarter net charge offs benefited from $1.0 million in recoveries compared to $165,000 in this quarter. The provision was $2.9 million for the current quarter, resulting in an allowance for loan losses of $27.8 million, or 53 percent of non-performing loans at March 31, 2012. This compares to 62 percent at December 31, 2011 and 81 percent at March 31, 2011. The provision was less than charge-offs as a portion of the charge-offs were previously covered by specific reserves. We continue to see limited formation of new problem loans. Substandard loans decreased $10 million due to upgrades. Special mention loans grew due to a downgrade of one loan, which is strongly supported by the paying capacity of the borrower, as well as the previously mentioned upgrades from substandard status.
Key Balance Sheet Changes
- The balance sheet increased $126.7 million or 4.1 percent compared to December 31, 2011 due primarily to increases in investment securities of $60.0 million and gross loans of $23.2 million funded by deposit growth of $233.4 million.
- Deposits increased $48.6 million compared to December 31, 2011, excluding municipal and wholesale deposits, with the majority coming from retail transaction and savings accounts. Wholesale deposits were $34.1 million and $54.9 million at March 31, 2012 and December 31, 2011, respectively.
- Total loan originations during second quarter fiscal 2012 were $166.6 million compared to $117.4 million for the same quarter last year and $231.6 million in the linked quarter. Commercial real estate balances including multi-family loans increased by $52.4 million or 6.5% over December 31, 2011 levels, more than offsetting declines in other categories.
- Securities increased $60.0 million over December 31, 2011 levels, primarily due to purchases of $160.8 million in securities during the second quarter partially offset by sales of $67.1 million with associated gains of $2.9 million.
Capital and Liquidity
Provident Bank remained well-capitalized at March 31, 2012 with the Bank's Tier 1 leverage ratio at 8.55 percent. The Company's tangible capital as a percent of tangible assets decreased 32 basis points from December 31, 2011 levels to 9.02 percent at March 31, 2012, while tangible book value per share increased to $7.25 from $7.19 at December 31, 2011 (a reconciliation of these Non-GAAP equity ratios is included with the ratios listed on the last page). Total capital increased $2.0 million from December 31, 2011, to $439.7 million at March 31, 2012, due primarily to a net increase of $3.4 million in the Company's retained earnings offset by a $1.7 million decline in accumulated other comprehensive income.
About Provident New York Bancorp
Headquartered in Montebello, N.Y., Provident Bank, with $3.2 billion in assets, specializes in the delivery of service and solutions to business owners, their families, and consumers in communities within the greater New York City marketplace through teams of dedicated and experienced relationship managers. Our franchise includes 36 Financial Centers. Provident Bank offers a complete line of commercial, business, and consumer banking products and services. For more information, visit the Provident Bank 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 with the Securities and Exchange Commission of the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2012. 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.
| Provident New York Bancorp and Subsidiaries | |||||||||||||||
| CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION | |||||||||||||||
| (unaudited, in thousands, except share and per share data) | |||||||||||||||
| March 31, | September 30, | December 31, | |||||||||||||
| 2012 | 2011 | 2011 | |||||||||||||
| Assets: | |||||||||||||||
| Cash and due from banks | $ | 89,019 | $ | 281,512 | $ | 43,687 | |||||||||
| Total securities | 1,027,541 | 849,884 | 967,538 | ||||||||||||
| Loans held for sale | 1,736 | 4,176 | 2,142 | ||||||||||||
| Loans: | |||||||||||||||
| One- to four-family residential mortgage loans | 366,675 | 389,765 | 386,472 | ||||||||||||
| Commercial real estate, commercial business | 1,053,208 | 913,279 | 1,001,576 | ||||||||||||
| Acquisition, development and construction loans | 163,808 | 175,931 | 167,934 | ||||||||||||
| Consumer loans | 215,421 | 224,824 | 219,911 | ||||||||||||
| Total loans, gross | 1,799,112 | 1,703,799 | 1,775,893 | ||||||||||||
| Allowance for loan losses | (27,787 | ) | (27,917 | ) | (28,245 | ) | |||||||||
| Total loans, net | 1,771,325 | 1,675,882 | 1,747,648 | ||||||||||||
| Federal Home Loan Bank stock, at cost | 17,129 | 17,584 | 21,789 | ||||||||||||
| Premises and equipment, net | 39,162 | 40,886 | 39,860 | ||||||||||||
| Goodwill | 160,861 | 160,861 | 160,861 | ||||||||||||
| Other amortizable intangibles | 4,001 | 4,629 | 4,306 | ||||||||||||
| Bank owned life insurance | 57,987 | 56,967 | 57,485 | ||||||||||||
| Foreclosed properties | 5,828 | 5,391 | 5,625 | ||||||||||||
| Other assets | 36,282 | 39,630 | 33,225 | ||||||||||||
| Total assets | $ | 3,210,871 | $ | 3,137,402 | $ | 3,084,166 | |||||||||
| Liabilities: | |||||||||||||||
| Deposits | |||||||||||||||
| Retail | $ | 167,247 | $ | 194,299 | $ | 166,972 | |||||||||
| Commercial | 314,177 | 296,505 | 307,004 | ||||||||||||
| Municipal | 20,339 | 160,422 | 14,870 | ||||||||||||
| Personal NOW deposits | 198,084 | 164,637 | 178,226 | ||||||||||||
| Business NOW deposits | 34,407 | 37,092 | 33,844 | ||||||||||||
| Municipal NOW deposits | 182,098 | 200,773 | 98,847 | ||||||||||||
| Total transaction accounts | 916,352 | 1,053,728 | 799,763 | ||||||||||||
| Savings | 479,648 | 429,825 | 444,803 | ||||||||||||
| Money market deposits | 698,899 | 509,483 | 579,955 | ||||||||||||
| Certificates of deposit | 274,089 | 303,659 | 311,034 | ||||||||||||
| Total deposits | 2,368,988 | 2,296,695 | 2,135,555 | ||||||||||||
| Borrowings | 313,849 | 323,522 | 417,043 | ||||||||||||
| Borrowings Senior Note | - | 51,499 | 51,500 | ||||||||||||
| Mortgage escrow funds and other liabilities | 88,335 | 34,552 | 42,386 | ||||||||||||
| Total liabilities | 2,771,172 | 2,706,268 | 2,646,484 | ||||||||||||
| Stockholders' equity | 439,699 | 431,134 | 437,682 | ||||||||||||
| Total liabilities and stockholders' equity | $ | 3,210,871 | $ | 3,137,402 | $ | 3,084,166 | |||||||||
| Shares of common stock outstanding at period end | 37,899,007 | 37,864,008 | 37,883,008 | ||||||||||||
| Book value per share | $ | 11.60 | $ | 11.39 | $ | 11.55 | |||||||||
| Provident New York Bancorp and Subsidiaries | |||||||||||||||
| CONSOLIDATED CONDENSED STATEMENTS OF INCOME | |||||||||||||||
| (unaudited, in thousands, except share and per share data) | |||||||||||||||
| Three Months Ended March 31, | Three Months Ended December 31, |
Six Months Ended March 31, |
|||||||||||||
| 2012 | 2011 | 2011 | 2012 | 2011 | |||||||||||
| Interest and dividend income: | |||||||||||||||
| Loans and loan fees | $ | 22,153 | $ | 22,039 | $ | 22,149 | $ | 44,302 | $ | 45,244 | |||||
| Securities taxable | 4,415 | 3,531 | 3,990 | 8,405 | 7,061 | ||||||||||
| Securities non-taxable | 1,599 | 1,901 | 1,774 | 3,373 | 3,826 | ||||||||||
| Other earning assets | 244 | 332 | 255 | 499 | 732 | ||||||||||
| Total interest income | 28,411 | 27,803 | 28,168 | 56,579 | 56,863 | ||||||||||
| Interest expense: | |||||||||||||||
| Deposits | 1,217 | 1,585 | 1,313 | 2,530 | 3,227 | ||||||||||
| Borrowings | 3,289 | 3,707 | 3,617 | 6,906 | 7,941 | ||||||||||
| Total interest expense | 4,506 | 5,292 | 4,930 | 9,436 | 11,168 | ||||||||||
| Net interest income | 23,905 | 22,511 | 23,238 | 47,143 | 45,695 | ||||||||||
| Provision for loan losses | 2,850 | 2,100 | 1,950 | 4,800 | 4,200 | ||||||||||
| Net interest income after provision for loan losses | 21,055 | 20,411 | 21,288 | 42,343 | 41,495 | ||||||||||
| Non-interest income: | |||||||||||||||
| Deposit fees and service charges | $ | 2,706 | $ | 2,643 | $ | 2,790 | $ | 5,496 | $ | 5,410 | |||||
| Net gain on sales of securities | 2,899 | 748 | 1,989 | 4,888 | 4,950 | ||||||||||
| Other than temporary loss on securities | - | - | (38 | ) | (38 | ) | - | ||||||||
| Title insurance fees | 265 | 274 | 260 | 525 | 637 | ||||||||||
| Bank owned life insurance | 502 | 553 | 518 | 1,020 | 1,047 | ||||||||||
| Gain on sale of loans | 450 | 310 | 440 | 890 | 852 | ||||||||||
| Investment management fees | 800 | 789 | 765 | 1,565 | 1,532 | ||||||||||
| Fair value gain (loss) on interest rate caps | (40 | ) | (2 | ) | (3 | ) | (43 | ) | 232 | ||||||
| Other | 389 | 480 | 455 | 844 | 1,018 | ||||||||||
| Total non-interest income | 7,971 | 5,795 | 7,176 | 15,147 | 15,678 | ||||||||||
| Non-interest expense: | |||||||||||||||
| Compensation and benefits | 11,395 | 11,183 | 10,549 | 21,944 | 22,411 | ||||||||||
| Retirement benefit settlement charge | - | 278 | - | - | 278 | ||||||||||
| Stock-based compensation plans | 284 | 296 | 275 | 559 | 575 | ||||||||||
| Merger related expenses | 299 | - | 247 | 546 | - | ||||||||||
| Restructuring charge (severance/branch relocation) | - | - | 376 | 376 | - | ||||||||||
| Occupancy and office operations | 3,409 | 3,757 | 3,701 | 7,110 | 7,392 | ||||||||||
| Advertising and promotion | 427 | 843 | 613 | 1,040 | 1,796 | ||||||||||
| Professional fees | 1,056 | 1,043 | 927 | 1,983 | 2,105 | ||||||||||
| Data and check processing | 710 | 691 | 672 | 1,382 | 1,333 | ||||||||||
| Amortization of intangible assets | 305 | 371 | 323 | 628 | 783 | ||||||||||
| FDIC insurance and regulatory assessments | 743 | 919 | 728 | 1,471 | 1,687 | ||||||||||
| ATM/debit card expense | 425 | 366 | 411 | 836 | 759 | ||||||||||
| Foreclosed property expense | 412 | 117 | 205 | 617 | 33 | ||||||||||
| Other | 1,825 | 1,927 | 1,694 | 3,519 | 3,908 | ||||||||||
| Total non-interest expense | 21,290 | 21,791 | 20,721 | 42,011 | 43,060 | ||||||||||
| Income before income tax expense | 7,736 | 4,415 | 7,743 | 15,479 | 14,113 | ||||||||||
| Income tax expense | 2,035 | 842 | 2,026 | 4,061 | 3,820 | ||||||||||
| Net income | $ | 5,701 | $ | 3,573 | $ | 5,717 | $ | 11,418 | $ | 10,293 | |||||
| Basic earnings per common share | $ | 0.15 | $ | 0.10 | $ | 0.15 | $ | 0.31 | $ | 0.27 | |||||
| Diluted earnings per common share | 0.15 | 0.10 | 0.15 | 0.31 | 0.27 | ||||||||||
| Dividends declared | 0.06 | 0.06 | 0.06 | 0.12 | 0.12 | ||||||||||
| Weighted average common shares: | |||||||||||||||
| Basic | 37,280,651 | 37,496,395 | 37,252,464 | 37,266,480 | 37,524,627 | ||||||||||
| Diluted | 37,316,778 | 37,497,467 | 37,252,464 | 37,275,633 | 37,524,950 | ||||||||||
| Selected Financial Condition Data: | Three Months Ended | |||||||||||||||||
| (in thousands except share and per share data) | 03/31/12 | 12/31/11 | 09/30/11 | 06/30/11 | 03/31/11 | |||||||||||||
| End of Period | ||||||||||||||||||
| Total assets | $ | 3,210,871 | $ | 3,084,166 | $ | 3,137,402 | $ | 2,976,057 | $ | 2,919,291 | ||||||||
| Loans, gross (1) | 1,799,112 | 1,775,893 | 1,703,799 | 1,685,272 | 1,684,827 | |||||||||||||
| Securities available for sale | 852,717 | 785,462 | 739,844 | 919,805 | 833,179 | |||||||||||||
| Securities held to maturity | 174,824 | 182,076 | 110,040 | 25,425 | 28,054 | |||||||||||||
| Bank owned life insurance | 57,987 | 57,485 | 56,967 | 56,454 | 51,985 | |||||||||||||
| Goodwill | 160,861 | 160,861 | 160,861 | 160,861 | 160,861 | |||||||||||||
| Other amortizable intangibles | 4,001 | 4,306 | 4,629 | 4,967 | 2,857 | |||||||||||||
| Other non-earning assets | 80,020 | 78,710 | 85,907 | 88,321 | 96,809 | |||||||||||||
| Deposits | 2,368,988 | 2,135,555 | 2,296,695 | 2,098,073 | 2,089,904 | |||||||||||||
| Borrowings | 313,849 | 468,543 | 375,021 | 401,831 | 379,441 | |||||||||||||
| Equity | 439,699 | 437,682 | 431,134 | 429,037 | 420,269 | |||||||||||||
| Other comprehensive income related to investment securities reflected in stockholders' equity | 13,780 | 15,823 | 13,604 | 5,769 | (3,146 | ) | ||||||||||||
| Average Balances | ||||||||||||||||||
| Total assets | $ | 3,131,854 | $ | 3,062,520 | $ | 2,978,273 | $ | 2,915,988 | $ | 2,940,299 | ||||||||
| Loans, gross: | ||||||||||||||||||
| Real estate- residential mortgage | 374,498 | 385,269 | 398,420 | 384,582 | 386,592 | |||||||||||||
| Real estate- commercial mortgage | 838,935 | 752,325 | 681,165 | 648,371 | 619,145 | |||||||||||||
| Real estate- Acquisition, Development & Construction | 163,116 | 172,155 | 186,398 | 198,120 | 216,914 | |||||||||||||
| Commercial and industrial | 197,507 | 203,929 | 208,181 | 222,128 | 229,632 | |||||||||||||
| Consumer loans | 220,537 | 224,422 | 226,687 | 228,993 | 232,712 | |||||||||||||
| Loans total (1) | 1,794,593 | 1,738,100 | 1,700,851 | 1,682,194 | 1,684,995 | |||||||||||||
| Securities (taxable) | 799,753 | 696,293 | 717,893 | 688,445 | 684,834 | |||||||||||||
| Securities (non-taxable) | 185,062 | 205,366 | 208,692 | 208,643 | 214,634 | |||||||||||||
| Total earning assets | 2,792,042 | 2,715,027 | 2,634,941 | 2,580,429 | 2,594,131 | |||||||||||||
| Non earning assets | 339,812 | 347,493 | 343,332 | 335,559 | 346,168 | |||||||||||||
| Non-interest bearing checking | 503,539 | 500,621 | 486,504 | 464,197 | 468,031 | |||||||||||||
| Interest bearing NOW accounts | 389,846 | 398,885 | 309,729 | 296,677 | 338,503 | |||||||||||||
| Total transaction accounts | 893,385 | 899,506 | 796,233 | 760,874 | 806,534 | |||||||||||||
| Savings (including mortgage escrow funds) | 463,971 | 445,236 | 461,566 | 444,913 | 416,777 | |||||||||||||
| Money market deposits | 654,013 | 577,387 | 504,476 | 529,286 | 490,215 | |||||||||||||
| Certificates of deposit | 284,737 | 302,713 | 371,907 | 346,903 | 367,099 | |||||||||||||
| Total deposits and mortgage escrow | 2,296,106 | 2,224,842 | 2,134,182 | 2,081,976 | 2,080,625 | |||||||||||||
| Total interest bearing deposits | 1,792,567 | 1,724,221 | 1,647,678 | 1,617,779 | 1,612,594 | |||||||||||||
| Borrowings | 375,766 | 392,785 | 391,391 | 397,531 | 420,069 | |||||||||||||
| Equity | 439,384 | 431,129 | 433,841 | 424,961 | 419,847 | |||||||||||||
| Selected Operating Data: | ||||||||||||||||||
| Condensed Tax Equivalent Income (Loss) Statement | ||||||||||||||||||
| Interest and dividend income | $ | 28,411 | $ | 28,168 | $ | 27,817 | $ | 27,934 | $ | 27,803 | ||||||||
| Tax equivalent adjustment* | 861 | 955 | 962 | 985 | 1,024 | |||||||||||||
| Interest expense | 4,506 | 4,930 | 5,026 | 5,130 | 5,292 | |||||||||||||
| Net interest income (tax equivalent) | 24,766 | 24,193 | 23,753 | 23,789 | 23,535 | |||||||||||||
| Provision for loan losses | 2,850 | 1,950 | 8,784 | 3,600 | 2,100 | |||||||||||||
| Net interest income after provision for loan losses | 21,916 | 22,243 | 14,969 | 20,189 | 21,435 | |||||||||||||
| Non-interest income | 7,971 | 7,176 | 9,056 | 5,217 | 5,795 | |||||||||||||
| Non-interest expense | 21,290 | 20,721 | 24,382 | 22,669 | 21,791 | |||||||||||||
| Income (loss) before income tax expense | 8,597 | 8,698 | (357 | ) | 2,737 | 5,439 | ||||||||||||
| Income tax expense (tax equivalent)* | 2,896 | 2,981 | 136 | 798 | 1,866 | |||||||||||||
| Net income (loss) | $ | 5,701 | $ | 5,717 | $ | (493 | ) | $ | 1,939 | $ | 3,573 | |||||||
| (1) Does not reflect allowance for loan losses of $27,787, $28,245, $27,917, $29,385, and $30,130. | ||||||||||||||||||
| * Tax exempt income assumed at a statutory 35% federal rate | ||||||||||||||||||
| Three Months Ended | |||||||||||||||
| 03/31/12 | 12/31/11 | 09/30/11 | 06/30/11 | 03/31/11 | |||||||||||
| Performance Ratios (annualized) | |||||||||||||||
| Return on Average Assets | 0.73 | % | 0.74 | % | -0.07 | % | 0.27 | % | 0.49 | % | |||||
| Return on Average Equity | 5.22 | % | 5.26 | % | -0.45 | % | 1.83 | % | 3.45 | % | |||||
| Non-Interest Income to Average Assets | 1.02 | % | 0.93 | % | 1.21 | % | 0.72 | % | 0.80 | % | |||||
| Non-Interest Expense to Average Assets | 2.73 | % | 2.68 | % | 3.25 | % | 3.12 | % | 3.01 | % | |||||
| Operating Efficiency Adjusted (2) | 67.86 | % | 67.80 | % | 70.24 | % | 70.99 | % | 73.56 | % | |||||
| Analysis of Net Interest Income | |||||||||||||||
| Yield on Loans | 5.03 | % | 5.13 | % | 5.22 | % | 5.41 | % | 5.40 | % | |||||
| Yield on Investment Securities- Tax Equivalent | 2.81 | % | 2.96 | % | 2.81 | % | 2.87 | % | 2.91 | % | |||||
| Yield on Earning Assets- Tax Equivalent | 4.22 | % | 4.26 | % | 4.33 | % | 4.50 | % | 4.51 | % | |||||
| Cost of Deposits | 0.21 | % | 0.23 | % | 0.26 | % | 0.29 | % | 0.31 | % | |||||
| Cost of Borrowings | 3.52 | % | 3.65 | % | 3.69 | % | 3.67 | % | 3.58 | % | |||||
| Cost of Interest Bearing Liabilities | 0.84 | % | 0.92 | % | 0.98 | % | 1.02 | % | 1.06 | % | |||||
| Net Interest Rate Spread- Tax Equivalent Basis | 3.38 | % | 3.34 | % | 3.35 | % | 3.48 | % | 3.45 | % | |||||
| Net Interest Margin- Tax Equivalent Basis | 3.57 | % | 3.54 | % | 3.58 | % | 3.70 | % | 3.68 | % | |||||
| Capital Information Data | |||||||||||||||
| Tier 1 Leverage Ratio- Bank Only | 8.55 | % | 8.51 | % | 8.14 | % | 8.77 | % | 9.10 | % | |||||
| Tier 1 Risk-Based Capital- Bank Only | 252,729 | 247,433 | 241,196 | 246,291 | 251,338 | ||||||||||
| Total Risk-Based Capital- Bank Only | 278,685 | 273,967 | 265,307 | 271,483 | 276,303 | ||||||||||
| Tangible Capital Consolidated (3) | 274,837 | 272,515 | 265,644 | 263,209 | 256,551 | ||||||||||
| Tangible Capital as a % of Tangible Assets Consolidated (3) | 9.02 | % | 9.34 | % | 8.94 | % | 9.37 | % | 9.31 | % | |||||
| Shares Outstanding | 37,899,007 | 37,883,008 | 37,864,008 | 38,005,866 | 38,072,942 | ||||||||||
| Shares Repurchased during qrtr(open market) | - | - | 183,000 | 66,108 | 125,744 | ||||||||||
| Basic weighted common shares outstanding | 37,280,651 | 37,252,464 | 37,332,121 | 37,368,391 | 37,496,395 | ||||||||||
| Diluted common shares outstanding | 37,316,778 | 37,252,464 | 37,332,245 | 37,370,213 | 37,497,467 | ||||||||||
| Basic (loss) earnings per common share | $ | 0.15 | $ | 0.15 | $ | (0.01 | ) | $ | 0.05 | $ | 0.10 | ||||
| Diluted (loss) earnings per common share | 0.15 | 0.15 | (0.01 | ) | 0.05 | 0.10 | |||||||||
| Dividends Paid per common share | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | ||||||||||
| Book Value per common share | 11.60 | 11.55 | 11.39 | 11.29 | 11.04 | ||||||||||
| Tangible Book Value per common share (3) | 7.25 | 7.19 | 7.02 | 6.93 | 6.74 | ||||||||||
| Asset Quality Measurements | |||||||||||||||
| Non-performing loans (NPLs): non-accrual | $ | 47,715 | $ | 38,896 | $ | 36,477 | $ | 42,226 | $ | 29,765 | |||||
| Non-performing loans (NPLs): still accruing | 4,247 | 7,017 | 4,090 | 5,837 | 7,412 | ||||||||||
| Other Real Estate Owned | 5,828 | 5,625 | 5,391 | 5,184 | 5,351 | ||||||||||
| Non-performing assets (NPAs) | 57,790 | 51,538 | 45,958 | 53,247 | 42,528 | ||||||||||
| Troubled Debt Restructures still accruing | 7,939 | 8,543 | 9,326 | 7,447 | 21,954 | ||||||||||
| Net Charge-offs | 3,308 | 1,622 | 10,252 | 4,345 | 3,006 | ||||||||||
| Net Charge-offs as % of average loans (annualized) | 0.74 | % | 0.37 | % | 2.41 | % | 1.03 | % | 0.71 | % | |||||
| NPLs as % of total loans | 2.89 | % | 2.59 | % | 2.38 | % | 2.85 | % | 2.21 | % | |||||
| NPAs as % of total assets | 1.80 | % | 1.67 | % | 1.46 | % | 1.79 | % | 1.46 | % | |||||
| Allowance for loan losses as % of NPLs | 53 | % | 62 | % | 69 | % | 61 | % | 81 | % | |||||
| Allowance for loan losses as % of total loans | 1.54 | % | 1.59 | % | 1.64 | % | 1.74 | % | 1.79 | % | |||||
| Special mention loans | 37,379 | 18,424 | 23,026 | 24,099 | 27,050 | ||||||||||
| Substandard / doubtful loans | 89,135 | 99,383 | 93,989 | 103,825 | 113,927 | ||||||||||
| (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: | ||||||||||||||||
| 03/31/12 | 12/31/11 | 09/30/11 | 06/30/11 | 03/31/11 | ||||||||||||
| Total Assets | $ | 3,210,871 | $ | 3,084,166 | $ | 3,137,402 | $ | 2,976,057 | $ | 2,919,291 | ||||||
| Goodwill and other amortizable intangibles | (164,862 | ) | (165,167 | ) | (165,490 | ) | (165,828 | ) | (163,718 | ) | ||||||
| Tangible Assets | $ | 3,046,009 | $ | 2,918,999 | $ | 2,971,912 | $ | 2,810,229 | $ | 2,755,573 | ||||||
| Stockholders' equity | 439,699 | 437,682 | 431,134 | 429,037 | 420,269 | |||||||||||
| Goodwill and other amortizable intangibles | (164,862 | ) | (165,167 | ) | (165,490 | ) | (165,828 | ) | (163,718 | ) | ||||||
| Tangible Stockholders' equity | $ | 274,837 | $ | 272,515 | $ | 265,644 | $ | 263,209 | $ | 256,551 | ||||||
| Outstanding Shares | 37,899,007 | 37,883,008 | 37,864,008 | 38,005,866 | 38,072,942 | |||||||||||
| Tangible capital as a % of tangible assets (consolidated) | 9.02 | % | 9.34 | % | 8.94 | % | 9.37 | % | 9.31 | % | ||||||
| Tangible book value per share | $ | 7.25 | $ | 7.19 | $ | 7.02 | $ | 6.93 | $ | 6.74 | ||||||
Contact Information:
PROVIDENT BANK CONTACT:
Stephen Masterson
EVP & Chief Financial Officer
845.369.8040