SOURCE: Provident NY Bancorp

Provident NY Bancorp

January 23, 2012 17:27 ET

Provident New York Bancorp Announces First Quarter 2012 Earnings of $0.15 per Diluted Share

MONTEBELLO, NY--(Marketwire - Jan 23, 2012) - Provident New York Bancorp (NYSE: PBNY), the parent company of Provident Bank, today announced first-quarter results for the period ended December 31, 2011. Net income for the quarter was $5.7 million, or $0.15 per diluted share, compared to net income of $6.7 million, or $0.18 per diluted share for same quarter last year and a net loss of $493,000, or $(0.01) per diluted share for the linked quarter ended September 30, 2011.

President's Comments
Jack Kopnisky, President and CEO, commented, "We are starting to see the positive financial impact from the implementation of our new strategies. I continue to be encouraged by our commercial loan originations, which were $186.7 million for the first quarter, up $39.4 million over the linked quarter. The commercial loan approved pipeline is up over 40 percent compared to the same quarter of last year. Our Westchester pipeline is now over one third of the total compared to 10 percent a year ago. Our expansion late last year in Bergen County accounts for almost 5 percent of the pipeline. We are excited about our recently announced strategic expansion into New York City and have brought on several teams to begin implementation of our strategy in that market. This, along with our recently announced acquisition of Gotham Bank, will enable us to continue to execute Provident's growth strategies. While we have seen improvements in financial performance in the first quarter, there is still work to be done as we realize the full implementation of our growth, expense control and risk mitigation strategies."

As a reminder, Provident New York Bancorp will host a conference call on January 24, 2012, at 10 AM EST to discuss the Company's first quarter results. Interested parties are invited to listen in by dialing 1-866-551-3680 and entering PIN number 52606203#. Accompanying slides will be available on the Company's website www.providentbanking.com.

Key items for the quarter

  • Earnings were $0.13 per diluted share, excluding the after tax effect of securities gains and other than temporary impairment credit losses, the fair value adjustment of interest rate caps, severances, and merger related expenses associated with the pending acquisition of Gotham Bank. This compares to $(0.01) for the linked quarter and $0.11 for comparable quarter last year. We believe these adjustments afford investors a better understanding of our core banking operations, and align more closely to the views of the investment community, which tends to adjust for the more variable components of income.
  • Provisions for loan losses were $2.0 million for the quarter compared to $8.8 million for the linked quarter, and $2.1 million for the same quarter last year.
  • Commercial loan originations were $186.7 million compared to $147.3 million for the linked quarter and $127.7 million for the same quarter last year.
  • Net charge-offs of $1.6 million are down $8.6 million from the linked quarter and down $285,000 from the same quarter last year.
  • Non-performing loans, a subset of substandard loans, increased to $45.9 million, up $5.3 million from the linked quarter and are up $9.7 million over the same quarter in the prior year (see credit quality section for additional discussion).

Net Interest Income and Margin
First quarter fiscal 2012 compared with first quarter fiscal 2011
Net interest income was $23.2 million for the first quarter of fiscal 2012, relatively unchanged from the same quarter of fiscal 2011. The current quarter was negatively affected by non-accrual interest on non-performing loans net of prepayment fees, which reduced interest income on loans by $384,000 in the first quarter of 2012 and $83,000 in the first quarter of 2011. The tax-equivalent yield on investments increased 14 basis points and loan yields were down 34 basis points compared to the first quarter fiscal 2011. As a result, the yield on interest-earning assets declined 28 basis points. For the first fiscal quarter of 2012 compared to the first quarter of fiscal 2011, the cost of deposits decreased 9 basis points to 0.23 percent, and the cost of borrowings increased by 16 basis points to 3.65 percent as a result of a change in mix between short term and long term funding. The resulting net interest margin on a tax-equivalent basis was 3.54 percent for the first quarter of fiscal 2012, compared to 3.66 percent for the same period a year ago. An increase of $73.9 million in the average cash balance at the Federal Reserve in the first fiscal quarter of 2012 compared to the same period last year resulted in a depression of net interest margin of 10 basis points for the first quarter of fiscal 2012. The increase in the average balance is related to the slow exit of municipal tax deposits received at September 30, 2011. There was no effect on net interest margin as a result of the Federal Reserve balance for the first fiscal quarter of 2011.

First quarter fiscal 2012 compared with linked quarter ended September 30, 2011
Net interest income for the quarter ended December 31, 2011 increased compared to the linked quarter ended September 30, 2011 by $447,000 or 1.96% to $23.2 million. The tax-equivalent net interest margin decreased 4 basis points from 3.58 percent in the linked quarter. The cash balance increase at the Federal Reserve depressed net interest margin by 10 basis points for the first quarter of 2012 compared to 2 basis points for the linked quarter. The overall yield on loans decreased 9 basis points to 5.13 percent. The current quarter was negatively affected by declining yields on commercial real estate originations. This was partially offset by a decrease in the non-accrual interest on non-performing loans net of prepayment fees of $384,000 in the first fiscal quarter of 2012 compared to $630,000 in the linked quarter. The yield on the investment portfolio increased 15 basis points. The overall yield on earning assets decreased 7 basis points to 4.26 percent. The cost of deposits declined 3 basis points, reflecting the already low level of deposit pricing. The average cost of borrowings decreased 4 basis points.

Noninterest Income
First quarter fiscal 2012 compared with first quarter fiscal 2011
Noninterest income totaled $7.2 million for the first quarter, a decrease of $2.7 million over the first quarter of fiscal 2011. The primary drivers of the decrease were lower gains on sales of securities of $2.0 million, a decrease of $2.2 million compared to $4.2 million and a fair value gain on interest rate caps in the first fiscal quarter of 2011. Further, lower other loan fees, gains on loan sales and lower title insurance fees also contributed to the decrease.

First quarter fiscal 2012 compared with linked quarter ended September 30, 2011
Noninterest income decreased $1.9 million on a linked quarter basis, mainly due to lower gains on the sale of securities of $2.0 million, a decrease of $2.5 million compared to $4.5 million for the linked quarter.

Noninterest Expense
First quarter fiscal 2012 compared with first quarter fiscal 2011
Noninterest expense decreased $548,000, when compared to the first quarter fiscal 2011. Lower employee benefits of $319,000 were offset by severance costs of $375,000 and new hires in executive management. Marketing and consulting costs declined by $340,000 and $306,000, respectively. These expense reductions were offset in part by merger related expense of $247,000 and an increase in real estate owned expense of $289,000.

First quarter fiscal 2012 compared with the linked quarter ended September 30, 2011
On a linked quarter basis, noninterest expense decreased $3.7 million. Decreases were seen in restructuring and defined benefit settlement charges of $3.2 million and real estate owned expense of $472,000. These decreases were offset in part by an increase in compensation due to bonus accrual of $700,000 in first fiscal quarter of 2012 compared to a credit of $408,000 in the linked quarter resulting from the reversal of the bonus accrual for fiscal year 2011.

Income Taxes
The Company recorded income tax expense for the first quarter of 2012 at an effective rate of 26 percent compared to 31 percent for the same period in fiscal 2011 due to the increased effect of BOLI income and larger tax-exempt municipal security interest relative to pre-tax income.

Credit Quality
Nonperforming loans increased to $45.9 million at December 31, 2011 from $40.6 million at September 30, 2011. The increase is primarily attributable to the ADC portfolio. In particular one relationship of $3.6 million migrated to nonperforming due to delinquency. Plans to resolve the credit are in progress and we expect no additional reserve requirements as a result. The remainder of the increase in the ADC portfolio was spread over four relationships. Net charge-offs for the quarter ended December 31, 2011 were $1.6 million compared to $10.3 million for the linked quarter and $1.9 million for the first quarter of fiscal 2011. Charge-offs resulted primarily from write-downs of residential and commercial real estate in the process of foreclosure. Net charge-offs benefited from recoveries of $1.0 million primarily from the small business Commercial and Industrial portfolio. Our provision was $2.0 million for the current quarter, resulting in an allowance for loan losses of $28.2 million, or 62 percent of non-performing loans at December 31, 2011. This compares to 69 percent at September 30, 2011 and 86 percent at December 31, 2010. Substandard loans at December 31, 2011 were $99.3 million, up from $94.0 million at September 30, 2011, down from $114.9 million at December 31, 2010. The increases from September 30, 2011 were primarily due to downgrades dispersed within the commercial categories. Special mention loans were $18.4 million compared to $23.0 million at September 30, 2011 and $63.6 million at December 31, 2010.

Key Balance Sheet Changes

  • The balance sheet declined $53.2 million or 1.7 percent compared to September 30, 2011 due primarily to a decrease in cash and due from banks. September 30, 2011 balances historically reflect deposits of municipal tax collections that are drawn down over time to fund government expenditures.
  • Gross loans increased $72.1 million or 4.2 percent from September 30, 2011 levels due entirely to increases in the commercial real estate category. ADC loans continue to trend down, reflecting our desire to end originations of these loans.
  • Deposits increased $9.1 million compared to September 30, 2011, excluding municipal and wholesale deposits. Deposits as of September 30, 2011 included approximately $280 million in municipal tax deposits. Wholesale deposits were $11.8 million and $54.9 million at September 30, 2011 and December 31, 2011, respectively.
  • Total loan originations during first quarter fiscal 2012 were $231.6 million compared to $180.6 million from the linked quarter. Commercial real estate balances including multi-family loans increased by $105.7 million over September 30, 2011 levels. Securities increased $117.7 million over September 30, 2011 levels, primarily due to purchases of $228.0 million in securities during the first quarter partially offset by sales of $81.6 million with associated gains of $2.0 million.
  • Net loan increases of $71.8 million, securities increases of $117.7 million and decreases in net seasonal municipal and wholesale deposits of $170.2 million were funded by $237.8 million in cash and due from banks and an increase of borrowings of $93.5 million from September 30, 2011.

Capital and Liquidity
Provident Bank remained well-capitalized at December 31, 2011 with the Bank's Tier 1 leverage ratio at 8.51% percent. The Company's tangible capital as a percent of tangible assets increased 40 basis points from September 30, 2011 levels to 9.34 percent at December 31, 2011, while tangible book value per share increased to $7.19 from $7.02 at September 30, 2011 (a reconciliation of these Non-GAAP equity ratios are included with the ratios listed on the last page). Total capital increased $6.5 million from September 30, 2011, to $437.7 million at December 31, 2011, due primarily to a net increase of $3.4 million in the Company's retained earnings and a $2.6 million improvement in accumulated other comprehensive income.

Other Information
The Company holds four private label mortgage backed securities with an amortized cost of $5.2 million and an estimated fair value of $4.7 million. Two securities included within this amount have carrying values of $4.2 million after recording an other than temporary impairment charge of $38,000 for the quarter and $113,000 in total. The amortized cost of these securities is $4.7 million. It is not likely that the Company will sell or be required to sell these securities prior to recovery of its amortized cost basis less any applicable current-period credit loss.

About Provident New York Bancorp
Headquartered in Montebello, N.Y., Provident Bank, with $3.1 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 December 31, 2011. 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 Non GAAP Adjusted Earnings:
Quarter Ended
December 31, September 30,
2011 2010 2011
Net Income (loss)
Net Income (loss) $ 5,717 $ 6,720 $ (493 )
Securities net gains and credit losses(1) (1,159 ) (2,496 ) (2,535 )
Fair value (gain) loss on interest rate caps(1) 2 (139 ) 101
Severance (1) 223 - 209
Merger related expenses (1) 147 - 151
Restructuring charges(1) (2) - - 2,043
Net adjusted income (loss) $ 4,930 $ 4,085 $ (524 )
Earnings per common share
Diluted Earnings per common share $ 0.15 $ 0.18 $ (0.01 )
Securities net gains and credit losses(1) (0.03 ) (0.07 ) (0.07 )
Fair value (gain) loss on interest rate caps(1) - - -
Severance (1) 0.01 - 0.01
Merger related expenses (1) - - -
Restructuring charges(1) (2) - - 0.05
Diluted adjusted earnings per common share $ 0.13 $ 0.11 $ (0.01 ) *
Non-interest income
Total non-interest income $ 7,176 $ 9,883 $ 9,056
Securities net gains and credit losses (1,951 ) (4,202 ) (4,268 )
Fair value (gain) loss on interest rate caps 3 (234 ) 170
Adjusted non interest-income $ 5,228 $ 5,447 $ 4,958
Non-interest expense
Total non-interest expense $ 20,721 $ 21,269 $ 24,382
Severance (376 ) - (352 )
Merger related expenses (247 ) - (255 )
Restructuring charges - - (2,849 )
Adjusted non interest-expense $ 20,098 $ 21,269 $ 20,926
(1)After marginal tax effect 40.61%
*Rounding
(2)A valuation allowance for $342,000 was established for capital losses related to certain asset write-offs
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,
2011 2011
Assets:
Cash and due from banks $ 43,687 $ 281,512
Total securities 967,538 849,884
Loans held for sale 2,142 4,176
Loans:
One- to four-family residential mortgage loans 385,552 389,765
Commercial real estate, commercial business 1,008,440 913,279
Acquisition, development and construction loans 161,990 175,931
Consumer loans 219,911 224,824
Total loans, gross 1,775,893 1,703,799
Allowance for loan losses (28,245 ) (27,917 )
Total loans, net 1,747,648 1,675,882
Federal Home Loan Bank stock, at cost 21,789 17,584
Premises and equipment, net 39,860 40,886
Goodwill 160,861 160,861
Other amortizable intangibles 4,306 4,629
Bank owned life insurance 57,485 56,967
Foreclosed properties 5,625 5,391
Other assets 33,225 39,630
Total assets $ 3,084,166 $ 3,137,402
Liabilities:
Deposits
Retail $ 166,972 $ 194,299
Commercial 307,004 296,505
Municipal 14,870 160,422
Personal NOW deposits 178,226 164,637
Business NOW deposits 33,844 37,092
Municipal NOW deposits 98,847 200,773
Total transaction accounts 799,763 1,053,728
Savings 444,803 429,825
Money market deposits 579,955 509,483
Certificates of deposit 311,034 303,659
Total deposits 2,135,555 2,296,695
Borrowings 417,043 323,522
Borrowings Senior Note 51,500 51,499
Mortgage escrow funds and other liabilities 42,386 34,552
Total liabilities 2,646,484 2,706,268
Stockholders' equity 437,682 431,134
Total liabilities and stockholders' equity $ 3,084,166 $ 3,137,402
Shares of common stock outstanding at period end 37,883,008 37,864,008
Book value per share $ 11.55 $ 11.39
Provident New York Bancorp and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (LOSS)
(unaudited, in thousands, except share and per share data)
Quarter
Quarter Ended Ended
December 31, September 30,
2011 2010 2011
Interest and dividend income:
Loans and loan fees $ 22,149 $ 23,205 $ 21,995
Securities taxable 3,990 3,530 3,825
Securities non-taxable 1,774 1,925 1,786
Other earning assets 255 400 211
28,168 29,060 27,817
Interest expense:
Deposits 1,313 1,642 1,384
Borrowings 3,617 4,234 3,642
Total interest expense 4,930 5,876 5,026
Net interest income 23,238 23,184 22,791
Provision for loan losses 1,950 2,100 8,784
Net interest income after provision for loan losses 21,288 21,084 14,007
Non-interest income:
Deposit fees and service charges $ 2,790 $ 2,767 $ 2,727
Net gain on sales of securities 1,989 4,202 4,519
Other than temporary loss on securities (38 ) - (251 )
Title insurance fees 260 363 275
Bank owned life insurance 518 494 514
Gain on sale of loans 440 542 166
Investment management fees 765 743 733
Fair value gain (loss) on interest rate caps (3 ) 234 (170 )
Other 455 538 543
Total non-interest income 7,176 9,883 9,056
Non-interest expense:
Compensation and benefits 10,549 11,228 10,129
Stock-based compensation plans 275 279 303
Merger related expenses 247 - 255
Restructuring charge(severance/branch relocation) 376 - 3,201
Occupancy and office operations 3,701 3,635 3,693
Advertising and promotion 613 953 677
Professional fees 927 1,062 1,147
Data and check processing 672 642 718
Amortization of intangible assets 323 412 338
FDIC insurance and regulatory assessments 728 768 636
ATM/debit card expense 411 393 425
Foreclosed property expense (income) 205 (84 ) 677
Other 1,694 1,981 2,183
Total non-interest expense 20,721 21,269 24,382
Income (Loss) before income tax expense 7,743 9,698 (1,319 )
Income tax (benefit) expense 2,026 2,978 (826 )
Net income $ 5,717 $ 6,720 $ (493 )
Per common share:
Basic (loss) earnings $ 0.15 $ 0.18 $ (0.01 )
Diluted (loss) earnings 0.15 0.18 (0.01 )
Dividends declared 0.06 0.06 0.06
Weighted average common shares:
Basic 37,252,464 37,552,245 37,332,121
Diluted 37,252,464 37,552,245 37,332,245
Selected Financial Condition Data: Three Months Ended
(in thousands except share and per share data) 12/31/11 09/30/11 06/30/11 03/31/11 12/31/10
End of Period
Total assets $ 3,084,166 $ 3,137,402 $ 2,976,057 $ 2,919,291 $ 2,940,513
Loans, gross (1) 1,775,893 1,703,799 1,685,272 1,684,827 1,699,502
Securities available for sale 785,462 739,844 919,805 833,179 869,996
Securities held to maturity 182,076 110,040 25,425 28,054 30,425
Bank owned life insurance 57,485 56,967 56,454 51,985 51,433
Goodwill 160,861 160,861 160,861 160,861 160,861
Other amortizable intangibles 4,306 4,629 4,967 2,857 3,229
Other non-earning assets 78,710 85,907 88,321 96,809 94,933
Deposits 2,135,555 2,296,695 2,098,073 2,089,904 1,980,068
Borrowings 468,543 375,021 401,831 379,441 495,783
Equity 437,682 431,134 429,037 420,269 419,642
Other comprehensive income related to investment securities reflected in stockholders' equity 15,823 13,604 5,769 (3,146 ) (2,932 )
Average Balances
Total assets $ 3,062,520 $ 2,978,273 $ 2,915,988 $ 2,940,299 $ 2,961,458
Loans, gross:
Real estate- residential mortgage 385,269 398,420 384,582 386,592 400,229
Real estate- commercial mortgage 752,325 681,165 648,371 619,145 606,701
Real estate- Acquisition, Development & Construction 172,155 186,398 198,120 216,914 226,816
Commercial and industrial 203,929 208,181 222,128 229,632 236,390
Consumer loans 224,422 226,687 228,993 232,712 237,106
Loans total (1) 1,738,100 1,700,851 1,682,194 1,684,995 1,707,242
Securities (taxable) 696,293 717,893 688,445 684,834 692,346
Securities (non-taxable) 205,366 208,692 208,643 214,634 221,802
Total earning assets 2,715,027 2,634,941 2,580,429 2,594,131 2,628,815
Non earning assets 347,493 343,332 335,559 346,168 332,643
Non-interest bearing checking 500,621 486,504 464,197 468,031 470,873
Interest bearing NOW accounts 398,885 309,729 296,677 338,503 317,876
Total transaction accounts 899,506 796,233 760,874 806,534 788,749
Savings (including mortgage escrow funds) 445,236 461,566 444,913 416,777 405,177
Money market deposits 577,387 504,476 529,286 490,215 433,865
Certificates of deposit 302,713 371,907 346,903 367,099 406,241
Total deposits and mortgage escrow 2,224,842 2,134,182 2,081,976 2,080,625 2,034,032
Total interest bearing deposits 1,724,221 1,647,678 1,617,779 1,612,594 1,563,159
Borrowings 392,785 391,391 397,531 420,069 481,939
Equity 431,129 433,841 424,961 419,847 428,900
Selected Operating Data:
Condensed Tax Equivalent Income (Loss) Statement
Interest and dividend income $ 28,168 $ 27,817 $ 27,934 $ 27,803 $ 29,060
Tax equivalent adjustment* 955 962 985 1,024 1,036
Interest expense 4,930 5,026 5,130 5,292 5,876
Net interest income (tax equivalent) 24,193 23,753 23,789 23,535 24,220
Provision for loan losses 1,950 8,784 3,600 2,100 2,100
Net interest income after provision for loan losses 22,243 14,969 20,189 21,435 22,120
Non-interest income 7,176 9,056 5,217 5,795 9,883
Non-interest expense 20,721 24,382 22,669 21,791 21,269
Income (loss) before income tax expense 8,698 (357 ) 2,737 5,439 10,734
Income tax expense (tax equivalent)* 2,981 136 798 1,866 4,014
Net income (loss) $ 5,717 $ (493 ) $ 1,939 $ 3,573 $ 6,720
(1) Does not reflect allowance for loan losses of $28,245, $27,917, $29,385, $30,130, and $31,036.
* Tax exempt income assumed at a statutory 35% federal rate
Three Months Ended
12/31/11 09/30/11 06/30/11 03/31/11 12/31/10
Performance Ratios (annualized)
Return on Average Assets 0.74 % -0.07 % 0.27 % 0.49 % 0.90 %
Return on Average Equity 5.26 % -0.45 % 1.83 % 3.45 % 6.22 %
Non-Interest Income to Average Assets 0.93 % 1.21 % 0.72 % 0.80 % 1.32 %
Non-Interest Expense to Average Assets 2.68 % 3.25 % 3.12 % 3.01 % 2.85 %
Operating Efficiency Adjusted (2) 67.80 % 70.24 % 70.99 % 73.56 % 70.59 %
Analysis of Net Interest Income
Yield on Loans 5.13 % 5.22 % 5.41 % 5.40 % 5.47 %
Yield on Investment Securities- Tax Equivalent 2.96 % 2.81 % 2.87 % 2.91 % 2.82 %
Yield on Earning Assets- Tax Equivalent 4.26 % 4.33 % 4.50 % 4.51 % 4.54 %
Cost of Deposits 0.23 % 0.26 % 0.29 % 0.31 % 0.32 %
Cost of Borrowings 3.65 % 3.69 % 3.67 % 3.58 % 3.49 %
Cost of Interest Bearing Liabilities 0.92 % 0.98 % 1.02 % 1.06 % 1.14 %
Net Interest Rate Spread- Tax Equivalent Basis 3.34 % 3.35 % 3.48 % 3.45 % 3.40 %
Net Interest Margin- Tax Equivalent Basis 3.54 % 3.58 % 3.70 % 3.68 % 3.66 %
Capital Information Data
Tier 1 Leverage Ratio- Bank Only 8.51 % 8.14 % 8.77 % 9.10 % 8.89 %
Tier 1 Risk-Based Capital- Bank Only 247,433 241,196 246,291 251,338 247,503
Total Risk-Based Capital- Bank Only 273,843 265,307 271,483 276,303 272,071
Tangible Capital Consolidated (3) 272,515 265,644 263,209 256,551 255,552
Tangible Capital as a % of Tangible Assets Consolidated (3) 9.34 % 8.94 % 9.37 % 9.31 % 9.20 %
Shares Outstanding 37,883,008 37,864,008 38,005,866 38,072,942 38,198,686
Shares Repurchased during qrtr(open market) - 183,000 66,108 125,744 82,602
Basic weighted common shares outstanding 37,252,464 37,332,121 37,368,391 37,496,395 37,552,245
Diluted common shares outstanding 37,252,464 37,332,245 37,370,213 37,497,467 37,552,245
Basic (loss) earnings per common share $ 0.15 $ (0.01 ) $ 0.05 $ 0.10 $ 0.18
Diluted (loss) earnings per common share 0.15 (0.01 ) 0.05 0.10 0.18
Dividends Paid per common share 0.06 0.06 0.06 0.06 0.06
Book Value per common share 11.55 11.39 11.29 11.04 10.99
Tangible Book Value per common share (3) 7.19 7.02 6.93 6.74 6.69
Asset Quality Measurements
Non-performing loans (NPLs): non-accrual $ 38,896 $ 36,477 $ 42,226 $ 29,765 $ 30,690
Non-performing loans (NPLs): still accruing 7,017 4,090 5,837 7,412 5,536
Other Real Estate Owned 5,625 5,391 5,184 5,351 3,585
Non-performing assets (NPAs) 51,538 45,958 53,247 42,528 39,811
Troubled Debt Restructures still accruing 8,543 8,736 7,447 21,954 17,581
Net Charge-offs 1,622 10,252 4,345 3,006 1,907
Net Charge-offs as % of average loans (annualized) 0.37 % 2.41 % 1.03 % 0.71 % 0.45 %
NPLs as % of total loans 2.59 % 2.38 % 2.85 % 2.21 % 2.13 %
NPAs as % of total assets 1.67 % 1.46 % 1.79 % 1.46 % 1.35 %
Allowance for loan losses as % of NPLs 62 % 69 % 61 % 81 % 86 %
Allowance for loan losses as % of total loans 1.59 % 1.64 % 1.74 % 1.79 % 1.83 %
Special mention loans 18,424 23,026 24,099 27,050 63,588
Substandard / doubtful loans 99,312 93,989 103,825 113,927 114,855
(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 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:
12/31/11 09/30/11 06/30/11 03/31/11 12/31/10
Total Assets $ 3,084,166 $ 3,137,402 $ 2,976,057 $ 2,919,291 $ 2,940,513
Goodwill and other amortizable intangibles (165,167 ) (165,490 ) (165,828 ) (163,718 ) (164,090 )
Tangible Assets $ 2,918,999 $ 2,971,912 $ 2,810,229 $ 2,755,573 $ 2,776,423
Stockholders' equity 437,682 431,134 429,037 420,269 419,642
Goodwill and other amortizable intangibles (165,167 ) (165,490 ) (165,828 ) (163,718 ) (164,090 )
Tangible Stockholders' equity $ 272,515 $ 265,644 $ 263,209 $ 256,551 $ 255,552
Outstanding Shares 37,883,008 37,864,008 38,005,866 38,072,942 38,198,686
Tangible capital as a % of tangible assets (consolidated) 9.34 % 8.94 % 9.37 % 9.31 % 9.20 %
Tangible book value per share $ 7.19 $ 7.02 $ 6.93 $ 6.74 $ 6.69

Contact Information

  • PROVIDENT BANK CONTACT:
    Stephen Masterson
    EVP & Chief Financial Officer
    Miranda Grimm
    FVP & Controller
    845.369.8040