SOURCE: Provident New York Bancorp

Provident New York Bancorp

January 23, 2013 16:50 ET

Provident New York Bancorp Announces First Quarter 2013 Earnings of $0.16 per Diluted Share

MONTEBELLO, NY--(Marketwire - Jan 23, 2013) -  Provident New York Bancorp (the "Company") (NYSE: PBNY), the parent company of Provident Bank, today announced first quarter results for the period ended December 31, 2012. Net income for the quarter was $7.0 million, or $0.16 per diluted share, compared to net income of $5.7 million, or $0.15 per diluted share for the same quarter last year; and $2.3 million, or $0.06 per diluted share for the linked quarter ended September 30, 2012. 

President's Comments
Jack Kopnisky, President and CEO, commented: "We had a strong first quarter to kick-off our year. Earnings for the quarter were $7.0 million or $0.16 per share, a 23% increase compared to the first quarter of 2012 and an increase of 210% over the linked quarter, which had been significantly impacted by merger-related expenses related to the acquisition of Gotham Bank of New York. Earnings were driven by strong commercial loan growth, solid core deposit growth and our continued management of expenses. We also continue to improve our operating efficiency as our growth in revenues outpaced expenses. Our efficiency ratio was 62.9% for the first quarter of 2013.

"Our credit quality continued to improve across the most important metrics. Non-performing loans of $34 million at December 31, 2012 are down $6.3 million compared to the linked quarter. Our ratio of non-performing loans to total loans declined by 106 basis points to 1.53% at December 31, 2012 as compared to the year ago period. Our allowance for loan losses to non-performing loans increased to 84% at December 31, 2012, and the positive trend in the risk ratings of our loan portfolio continued as well.

"Our overall strategy of focusing primarily on middle market clients has strong momentum. We continue to see significant opportunities for full relationships in the market. Our pipelines of loans, deposits and fee income opportunities continue to be at record highs. These volumes are enabling us to diversify our loan portfolio from higher concentrations of real estate loans to a more balanced portfolio. Overall we are originating approximately 50% of our commercial loans and deposits in our new markets and approximately 50% in our legacy markets.

"We are pleased to report that the integration of the Gotham Bank acquisition is going as planned and is assisting us in accelerating our growth in the New York City market area.

"Finally we continue to maintain strong levels of capital and liquidity. Tier 1 leverage ratio was approximately 8.2% at the Bank level and our total risk-based capital ratio was approximately 13.5%."

Key highlights for the quarter

  • Total loan originations were $291.1 million compared to $205.7 million in the linked quarter, and $231.6 million for the first fiscal quarter of 2012.
  • Total loans reached $2.2 billion at December 31, 2012, a $73.7 million increase compared to September 30, 2012.
  • Our allowance for loan losses remained relatively unchanged at $28.1 million at December 31, 2012, in large part due to the growth in our loan portfolio. The allowance for loan losses as a percentage of total loans was 1.28% at December 31, 2012, compared to 1.33% in the linked quarter. The allowance ratios are inclusive of acquired Gotham loans that were recorded at fair value at acquisition date and for which there is no additional allowance for loan losses at either December 31, 2012 or September 30, 2012. 
  • Non-performing loans decreased from $39.8 million at September 30, 2012, to $33.6 million at December 31, 2012. The reduction in non-performing loans improved the allowance for loan losses to non-performing loans ratio to 84% at December 31, 2012. 
  • Provision for loan losses was $3.0 million and decreased by $550 thousand compared to the linked quarter. For the first quarter of fiscal 2012, our provision for loan losses was $2.0 million.
  • Net interest margin was 3.37% for the first quarter of fiscal 2013 compared to 3.38% in the linked quarter and 3.54% in the first quarter of fiscal 2012.

Net Interest Income and Margin 
First quarter fiscal 2013 compared with first quarter fiscal 2012
Net interest income was $27.9 million for the first quarter of fiscal 2013, up $4.7 million compared to the first quarter of fiscal 2012 due to higher average loan volumes. Reflecting the current interest rate environment, the tax-equivalent yield on investments decreased 67 basis points and loan yields declined nine basis points compared to the first quarter of fiscal 2012. As a result, the yield on interest-earning assets declined 28 basis points to 3.98% on a tax equivalent basis for the first quarter of fiscal 2013. The cost of deposits increased five basis points to 28 basis points from the year ago quarter, while the cost of borrowings decreased by seven basis points to 3.58%. The resulting net interest margin on a tax-equivalent basis was 3.37% for the first quarter of fiscal 2013 compared to 3.54% for the same period a year ago. 

First quarter fiscal 2013 compared with linked quarter ended September 30, 2012
Net interest income for the quarter ended December 31, 2012 increased $2.7 million to $27.9 million, compared to $25.2 million for the linked quarter ended September 30, 2012. This was primarily due to higher volumes. The tax-equivalent net interest margin decreased to 3.37% from 3.38% in the linked quarter. Yield on loans increased seven basis points and was 5.04%. Yield on interest earning assets declined three basis points to 3.98% from 4.01% at September 30, 2012. Deposit costs increased by one basis point, while the cost of borrowings decreased seven basis points.

Non-interest Income
First quarter fiscal 2013 compared with first quarter fiscal 2012
Non-interest income increased $483 thousand to $7.7 million for the first quarter of fiscal 2013 compared with first quarter of fiscal 2012. The increase was mainly driven by an increase in gain on sale of loans of $306 thousand given strong residential loan origination volume during the quarter and increases in other loan fees included in other non-interest income of $744 thousand. Net gain on sales of securities decreased by $573 thousand to $1.4 million.

First quarter fiscal 2013 compared with linked quarter ended September 30, 2012
Non-interest income decreased $1.4 million to $7.7 million for the first fiscal quarter of 2013 compared to the linked quarter ended September 30, 2012. Net gain on sales of securities declined by $1.7 million to $1.4 million for the first quarter of fiscal 2013 compared to $3.2 million for the linked quarter. Partially offsetting this decline were higher gain on sale of loans and other loan fees included in other non-interest income.

Non-interest Expense
First quarter fiscal 2013 compared with first quarter fiscal 2012
Non-interest expense increased $1.8 million to $22.5 million, when compared to the first quarter of fiscal 2012. This was principally attributed to an increase in personnel associated with the continued growth in the number of our commercial banking teams.

First quarter fiscal 2013 compared with the linked quarter ended September 30, 2012
Non-interest expense decreased $6.2 million, or 21.7% over the linked quarter. The decrease was mainly related to the $4.9 million in merger related costs associated with the Gotham acquisition in the quarter ended September 30, 2012. 

Income Taxes
The Company recorded income tax expense for the first quarter of fiscal 2013 at an effective tax rate of 30.4% compared to 26.2% for the same period in fiscal 2012. The increase in the tax rate is the result of increased operating revenue which causes the proportional impact of tax-exempt municipal securities interest and bank owned life insurance income to decline.

Credit Quality
Non-performing loans decreased to $33.6 million at December 31, 2012 compared to $39.8 million at September 30, 2012. We exited a large credit relationship in our Acquisition, Development and Construction ("ADC") portfolio that contributed to the decline. Net charge-offs for the quarter were $3.1 million compared to $2.8 million in the linked quarter. The allowance for loan losses at December 31, 2012 was $28.1 million, which represented 83.8% of non-performing loans and 1.28% of our total loan portfolio. This compares to the linked quarter, in which the allowance for loan losses was $28.3 million, which represented 71.0% of non-performing loans and 1.33% of our total loan portfolio. The allowance for loan losses to total loans, excluding loans acquired in the Gotham transaction that were recorded at fair value at the acquisition date and continue to carry no allowance was 1.41% and 1.47%, at December 31, 2012 and September 30, 2012, respectively. Please refer to the Company's reconciliation of this non-GAAP measure on page 9.

During the quarter, foreclosed properties increased $650 thousand to $7.1 million. Contributing to the increase were foreclosed ADC loans that totaled $1.3 million and one residential loan with a balance of $121 thousand. This was offset by sales and write-downs that totaled $731 thousand.

Key Balance Sheet Changes

  • Assets at December 31, 2012, decreased $233.5 million or 5.80% compared to September 30, 2012, mainly related to decreases in our cash balances of $277.7 million. Our cash balance at September 30, 2012 was elevated due to municipal tax collections that were subsequently drawn down during the quarter.
  • Loans increased $73.7 million in the first fiscal quarter of 2013 and reached $2.2 billion.
  • Deposits decreased $206.8 million between September 30, 2012 and December 31, 2012. Municipal deposits decreased $363.5 million compared to September 30, 2012, as a result of seasonal tax deposits, offset by increases in our commercial deposits of $91.7 million.
  • Securities at December 31, 2012 decreased $22.1 million as compared to September 30, 2012. Purchases for the first fiscal quarter of 2013 were $109.0 million, which were offset by sales of $41.3 million and $85.5 million in calls, maturities and principal pay downs.

Capital and Liquidity
Provident Bank remained well capitalized at December 31, 2012 with a Tier 1 Leverage ratio of 8.21% based on period end assets. Total capital increased $2.8 million from September 30, 2012, to $493.9 million at December 31, 2012. Tangible book value per share increased by $0.04 to $7.30 at December 31, 2012 from $7.26 at September 30, 2012, due to retained earnings. For the quarter ended December 31, 2012, the weighted average common shares outstanding increased to 43.6 million and 43.7 million, basic shares and diluted shares, respectively, compared to 41.1 million basic and diluted shares for the quarter ended September 30, 2012. This increase includes shares issued in our August 2012 $46 million capital raise.

About Provident New York Bancorp
Headquartered in Montebello, N.Y., Provident Bank, with $3.8 billion in assets, is a growing financial services firm that specializes in the delivery of service and solutions to business owners, their families, and consumers in communities within the greater New York City area through teams of dedicated and experienced relationship managers. 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, 2012. While the Company is not aware of any need to revise the results disclosed in this release, accounting literature may require 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)  
   
    As of  
    12/31/12     9/30/12  
Assets:                
Cash and due from banks   $ 160,241     $ 437,982  
Total securities     1,131,172       1,153,248  
HVIA assets held for sale     -       4,550  
Loans held for sale     5,423       7,505  
Loans:                
  One- to four-family residential mortgage loans     352,014       350,022  
  Commercial real estate loans     1,136,965       1,072,504  
  Commercial and industrial loans     376,052       343,307  
  Acquisition, development and construction loans     122,518       144,061  
  Consumer loans     205,580       209,578  
      Total loans, gross     2,193,129       2,119,472  
  Allowance for loan losses     (28,114 )     (28,282 )
      Total loans, net     2,165,015       2,091,190  
Federal Home Loan Bank stock, at cost     19,246       19,249  
Premises and equipment, net     38,086       38,483  
Goodwill     163,247       163,247  
Other amortizable intangibles     6,926       7,164  
Bank owned life insurance     59,526       59,017  
Foreclosed properties     7,053       6,403  
Other assets     33,579       34,944  
      Total assets   $ 3,789,514     $ 4,022,982  
Liabilities:                
  Deposits                
    Retail   $ 167,369     $ 167,050  
    Commercial     501,667       412,630  
    Municipal     15,779       367,624  
    Personal NOW deposits     250,345       213,755  
    Business NOW deposits     41,164       38,486  
    Municipal NOW deposits     168,771       195,882  
      Total transaction accounts     1,145,095       1,395,427  
    Savings     560,039       506,538  
    Money market deposits     834,544       821,704  
    Certificates of deposit     364,706       387,482  
      Total deposits     2,904,384       3,111,151  
  Borrowings     345,411       345,176  
  Mortgage escrow funds and other liabilities     45,836       75,533  
      Total liabilities     3,295,631       3,531,860  
Stockholders' equity     493,883       491,122  
      Total liabilities and stockholders' equity   $ 3,789,514     $ 4,022,982  
                 
Shares of common stock outstanding at period end     44,348,787       44,173,470  
Book value per share   $ 11.14     $ 11.12  
                 
                 
                 
Provident New York Bancorp and Subsidiaries  
CONSOLIDATED CONDENSED STATEMENTS OF INCOME  
(unaudited, in thousands, except share and per share data)  
   
    For the Quarters Ended  
    12/31/12     12/31/11     9/30/12  
Interest and dividend income:                        
  Loans and loan fees   $ 27,071     $ 22,149     $ 24,396  
  Securities taxable     4,284       3,990       3,909  
  Securities non-taxable     1,457       1,774       1,543  
  Other earning assets     333       255       265  
Total interest income     33,145       28,168       30,113  
Interest expense:                        
  Deposits     2,097       1,313       1,789  
  Borrowings     3,125       3,617       3,085  
Total interest expense     5,222       4,930       4,874  
Net interest income     27,923       23,238       25,239  
Provision for loan losses     2,950       1,950       3,500  
Net interest income after provision for loan losses     24,973       21,288       21,739  
Non-interest income:                        
  Deposit fees and service charges   $ 2,778     $ 2,790     $ 3,065  
  Net gain on sales of securities     1,416       1,989       3,152  
  Other than temporary loss on securities     (25 )     (38 )     (3 )
  Title insurance fees     259       260       332  
  Bank owned life insurance     509       518       512  
  Gain on sale of loans     746       440       429  
  Gain on sale of premises and equipment     5       -       70  
  Loss on sale of HVIA     -       -       (135 )
  Investment management fees     705       765       776  
  Fair value loss on interest rate caps     (1 )     (3 )     (6 )
  Other     1,267       455       834  
Total non-interest income     7,659       7,176       9,026  
Non-interest expense:                        
  Compensation and benefits     12,299       10,549       12,873  
  Stock-based compensation plans     500       275       302  
  Merger related expenses     -       247       4,928  
  Restructuring charge (severance/branch relocation)     -       376       -  
  Occupancy and office operations     3,810       3,701       3,959  
  Advertising and promotion     244       613       369  
  Professional fees     1,215       927       1,136  
  Data and check processing     649       672       715  
  Amortization of intangible assets     261       323       334  
  FDIC insurance and regulatory assessments     718       728       843  
  ATM/debit card expense     442       411       438  
  Foreclosed property expense     285       205       573  
  Other     2,123       1,694       2,314  
Total non-interest expense     22,546       20,721       28,784  
Income before income tax expense     10,086       7,743       1,981  
Income tax expense (benefit)     3,066       2,026       (280 )
Net income   $ 7,020     $ 5,717     $ 2,261  
  Basic earnings per common share   $ 0.16     $ 0.15     $ 0.06  
  Diluted earnings per common share     0.16       0.15       0.06  
  Dividends declared     0.06       0.06       0.06  
Weighted average common shares:                        
  Basic     43,637,315       37,252,464       41,054,458  
  Diluted     43,721,091       37,252,464       41,099,237  
                           
                           
                           
Selected Financial Condition Data: As of and for the Quarter Ended
(in thousands except share and per share data) 12/31/12   9/30/12   6/30/12   3/31/12   12/31/11
End of Period                            
Total assets $ 3,789,514   $ 4,022,982   $ 3,150,040   $ 3,210,871   $ 3,084,166
Loans, gross 1   2,193,129     2,119,472     1,851,027     1,799,112     1,775,893
Securities available for sale   991,298     1,010,872     714,200     852,717     785,462
Securities held to maturity   139,874     142,376     171,233     174,824     182,076
Bank owned life insurance   59,526     59,017     58,506     57,987     57,485
Goodwill   163,247     163,247     160,861     160,861     160,861
Other amortizable intangibles   6,926     7,164     3,718     4,001     4,306
Other non - earning assets   78,718     79,830     83,106     80,020     78,710
Deposits   2,904,384     3,111,151     2,332,091     2,368,988     2,135,555
Borrowings   345,411     345,176     314,154     313,849     468,543
Equity   493,883     491,122     444,670     439,699     437,682
Other comprehensive income related to investment securities reflected in stockholders' equity   12,548     15,066     14,141     13,780     15,823
Average Balances                            
Total assets $ 3,792,201   $ 3,451,055   $ 3,133,958   $ 3,131,854   $ 3,062,520
Loans, gross:                            
  One-to-four-family residential mortgage loans   344,064     352,724     360,487     374,498     385,269
  Commercial real estate loans   1,107,779     989,349     868,963     838,935     752,325
  Acquisition, development and construction loans   138,881     156,726     165,442     163,116     172,155
  Commercial and industrial loans   354,137     263,922     205,051     197,507     203,929
  Consumer loans   208,064     210,650     215,555     220,537     224,422
Loans total 1   2,152,925     1,973,371     1,815,498     1,794,593     1,738,100
Securities (taxable)   954,372     841,373     778,782     799,753     696,293
Securities (non-taxable)   174,201     181,540     182,003     185,062     205,366
Total earning assets   3,380,875     3,070,315     2,797,093     2,792,042     2,715,027
Non earning assets   411,326     380,740     336,865     339,812     347,493
Non-interest bearing checking   649,077     592,962     483,589     503,539     500,621
Interest bearing NOW accounts   469,180     398,493     412,072     389,846     398,885
Total transaction accounts   1,118,257     991,455     895,661     893,385     899,506
Savings (including mortgage escrow funds)   531,107     539,904     493,234     463,971     445,236
Money market deposits   908,262     756,655     697,342     654,013     577,387
Certificates of deposit   380,244     303,788     265,375     284,737     302,713
Total deposits and mortgage escrow   2,937,870     2,591,802     2,351,612     2,296,106     2,224,842
Total interest bearing deposits (including escrow)   2,288,793     1,998,840     1,868,023     1,792,567     1,724,221
Borrowings   345,951     336,217     320,237     375,766     392,785
Equity   492,506     475,652     441,956     439,384     431,129
Selected Operating Data:                            
Condensed Tax Equivalent Income Statement                            
Interest and dividend income $ 33,145   $ 30,113   $ 28,345   $ 28,411   $ 28,168
Tax equivalent adjustment*   785     830     852     861     955
Interest expense   5,222     4,874     4,263     4,506     4,930
    Net interest income (tax equivalent)   28,708     26,069     24,934     24,766     24,193
Provision for loan losses   2,950     3,500     2,312     2,850     1,950
    Net interest income after provision for loan losses   25,758     22,569     22,622     21,916     22,243
Non-interest income   7,659     9,026     7,979     7,971     7,176
Non-interest expense   22,546     28,784     21,162     21,290     20,721
Income before income tax expense   10,871     2,811     9,439     8,597     8,698
Income tax expense (tax equivalent)*   3,851     550     3,230     2,896     2,981
    Net income $ 7,020   $ 2,261   $ 6,209   $ 5,701   $ 5,717
                                 
1 Does not reflect allowance for loan losses of $28,114, $28,282, $27,587, $27,787, and $28,245.
* Tax exempt income assumed at a statutory 35% federal rate.
 
 
 
  For the Quarter Ended  
  12/31/12     9/30/12   6/30/12   3/31/12   12/31/11  
Performance Ratios (annualized)                                
Return on average assets   0.73 %     0.26 %   0.80 %   0.73 %   0.74 %
Return on average stockholders' equity   5.65 %     1.89 %   5.65 %   5.22 %   5.26 %
Return on average tangible equity 1   8.71 %     2.92 %   9.01 %   8.36 %   8.53 %
Non-interest income to average assets   0.80 %     1.04 %   1.02 %   1.02 %   0.93 %
Non-interest expense to average assets   2.36 %     3.32 %   2.72 %   2.73 %   2.68 %
GAAP operating efficiency   63.4 %     84.0 %   66.0 %   66.8 %   68.1 %
Core operating efficiency 1   62.9 %     72.0 %   65.5 %   67.9 %   67.8 %
Analysis of Net Interest Income                                
Yield on loans   5.04 %     4.97 %   5.01 %   5.03 %   5.13 %
Yield on investment securities - tax equivalent2   2.29 %     2.44 %   2.79 %   2.81 %   2.96 %
Yield on earning assets - tax equivalent2   3.98 %     4.01 %   4.20 %   4.22 %   4.26 %
Cost of deposits   0.28 %     0.27 %   0.22 %   0.21 %   0.23 %
Cost of borrowings   3.58 %     3.65 %   3.77 %   3.52 %   3.65 %
Cost of interest bearing liabilities   0.79 %     0.83 %   0.78 %   0.84 %   0.92 %
Net interest rate spread - tax equivalent basis2   3.19 %     3.18 %   3.42 %   3.38 %   3.34 %
Net interest margin- tax equivalent basis2   3.37 %     3.38 %   3.59 %   3.57 %   3.54 %
Capital Information Data                                
Tier 1 leverage ratio - Bank only   8.21 %     7.49 %   8.67 %   8.32 %   8.51 %
Tier 1 risk-based capital - Bank only $ 297,090   3 $ 289,441   $ 257,621   $ 252,586   $ 247,433  
Total risk-based capital - Bank only   325,411   3   317,929     283,033     277,614     273,911  
Tangible capital consolidated 1   323,710       320,711     280,091     274,837     272,515  
Tangible capital as a % of tangible assets consolidated 1   8.94 %     8.32 %   9.38 %   9.02 %   9.34 %
Shares of common stock outstanding   44,348,787       44,173,470     37,899,007     37,899,007     37,883,008  
Shares repurchased during qtr (open market)   -       -     -     -     -  
Basic weighted average common shares outstanding   43,637,315       41,054,458     37,302,693     37,280,651     37,252,464  
Diluted weighted average common shares outstanding   43,721,091       41,099,237     37,330,467     37,316,778     37,252,464  
Basic earnings per common share $ 0.16     $ 0.06   $ 0.17   $ 0.15   $ 0.15  
Diluted earnings per common share   0.16       0.06     0.17     0.15     0.15  
Dividends declared per common share   0.06       0.06     0.06     0.06     0.06  
Book value per share   11.14       11.12     11.73     11.60     11.55  
Tangible book value per common share 1   7.30       7.26     7.39     7.25     7.19  
Asset Quality Measurements                                
Non-performing loans (NPLs): non-accrual $ 27,730     $ 35,444   $ 41,048   $ 47,269   $ 40,777  
Non-performing loans (NPLs): still accruing   5,823       4,370     3,450     4,693     5,136  
Other real estate owned   7,053       6,403     7,292     5,828     5,625  
Non-performing assets (NPAs)   40,606       46,217     51,790     57,790     51,538  
Net charge-offs   3,118       2,805     2,512     3,308     1,622  
Net charge-offs as % of average loans (annualized)   0.58 %     0.57 %   0.55 %   0.74 %   0.37 %
NPLs as % of total loans   1.53 %     1.88 %   2.40 %   2.89 %   2.59 %
NPAs as % of total assets   1.07 %     1.15 %   1.64 %   1.80 %   1.67 %
Allowance for loan losses as % of NPLs   83.8 %     71.0 %   62.0 %   53.5 %   61.5 %
Allowance for loan losses as % of total loans   1.28 %     1.33 %   1.49 %   1.54 %   1.59 %
Allowance for loan losses as % of total, excluding Gotham1   1.41 %     1.47 %   1.49 %   1.54 %   1.59 %
Special mention loans $ 29,755     $ 42,422   $ 37,555   $ 37,379   $ 18,424  
Substandard / doubtful loans   83,109       88,674     88,395     89,135     99,383  
1 See reconciliation of GAAP measure to non-GAAP measure on following page.  
2 Tax equivalent adjustment represents interest income earned on municipal securities divided by the applicable Federal tax rate of 35% for all periods presented.  
3 Represents preliminary results for the quarter ended December 31, 2012.  
   
   
   
Non GAAP Financial Measures As of and for the Quarter Ended  
(in thousands except share and per share data) 12/31/12   9/30/12   6/30/12   3/31/12   12/31/11  
   
The Company provides supplemental reporting of non-GAAP measures as management believes this information is useful to investors.  
The following table shows the reconciliation of stockholders' equity to tangible equity and the tangible equity ratio:        
Total assets $ 3,789,514   $ 4,022,982   $ 3,150,040   $ 3,210,871   $ 3,084,166  
Goodwill and other amortizable intangibles   (170,173 )   (170,411 )   (164,579 )   (164,862 )   (165,167 )
Tangible assets   3,619,341     3,852,571     2,985,461     3,046,009     2,918,999  
Stockholders' equity   493,883     491,122     444,670     439,699     437,682  
Goodwill and other amortizable intangibles   (170,173 )   (170,411 )   (164,579 )   (164,862 )   (165,167 )
Tangible stockholders' equity   323,710     320,711     280,091     274,837     272,515  
Shares of common stock outstanding at period end   44,348,787     44,173,470     37,899,007     37,899,007     37,883,008  
Tangible capital as a % of tangible assets   8.94 %   8.32 %   9.38 %   9.02 %   9.34 %
Tangible book value per share $ 7.30   $ 7.26   $ 7.39   $ 7.25   $ 7.19  
The Company believes that tangible equity is useful as a tool to help assess a company's capital position.  
The following table shows the reconciliation of return on average tangible equity:  
Average stockholders' equity $ 492,506   $ 475,652   $ 441,956   $ 439,384   $ 431,129  
Average goodwill and other amortizable intangibles   (172,723 )   (167,623 )   (164,751 )   (165,045 )   (165,360 )
Average tangible stockholders' equity   319,783     308,029     277,205     274,339     265,769  
Net income   7,020     2,261     6,209     5,701     5,717  
Net income, if annualized   27,851     8,995     24,972     22,929     22,682  
Return on average tangible equity   8.71 %   2.92 %   9.01 %   8.36 %   8.53 %
The Company believes that the return on average tangible stockholders' equity is useful as a tool to help measure and assess a company's use of equity.  
The following table shows the reconciliation of the operating efficiency ratio:  
Net interest income $ 27,923   $ 25,239   $ 24,082   $ 23,905   $ 23,238  
Non-interest income   7,659     9,026     7,979     7,971     7,176  
Total net revenues   35,582     34,265     32,061     31,876     30,414  
Tax equivalent adjustment on securities interest income   785     830     852     861     955  
Net gain on sales of securities   (1,416 )   (3,152 )   (2,412 )   (2,899 )   (1,989 )
Other than temporary loss on securities   25     3     6     -     38  
Other, (other gains and fair value loss on interest rate caps)   (4 )   (64 )   14     40     3  
Core total revenues   34,972     31,882     30,521     29,878     29,421  
Non-interest expense   22,546     28,784     21,162     21,290     20,721  
Merger related expense   -     (4,928 )   (451 )   (299 )   (247 )
Foreclosed property expense   (285 )   (573 )   (428 )   (412 )   (205 )
Amortization of intangible assets   (261 )   (334 )   (283 )   (305 )   (323 )
Core non-interest expense   22,000     22,949     20,000     20,274     19,946  
Core efficiency ratio   62.9 %   72.0 %   65.5 %   67.9 %   67.8 %
The core efficiency ratio reflects total revenues inclusive of the tax equivalent adjustment on municipal securities and excludes securities gains, other than temporary impairments and the other adjustments shown above. Core non-interest expense is adjusted to exclude the effect of foreclosed property expense and amortization of intangible assets. The Company believes this non-GAAP information provides useful information to users to assess the Company's core operations.  
The following table shows the reconciliation of the allowance for loan losses to total loans and to total loans excluding Gotham loans:  
Total loans $ 2,193,129   $ 2,119,472   $ 1,851,027   $ 1,799,112   $ 1,775,893  
Gotham loans   194,518     201,794     -     -     -  
Total loans, excluding Gotham loans   1,998,611     1,917,678     1,851,027     1,799,112     1,775,893  
Allowance for loan losses   28,114     28,282     27,587     27,787     28,245  
Allowance for loan losses to total loans   1.28 %   1.33 %   1.49 %   1.54 %   1.59 %
Allowance for loan losses to total loans, excluding Gotham loans   1.41 %   1.47 %   NA     NA     NA  
As required by GAAP, the Company recorded at fair value the loans acquired in the Gotham transaction. These loans contain no allowance for loan losses in losses for the periods reflected above.  
                               

Contact Information

  • PROVIDENT BANK CONTACT:
    Luis Massiani
    EVP & Chief Financial Officer
    845.369.8040

    Provident New York Bancorp
    400 Rella Boulevard
    Montebello, NY 10901-4243
    T 845.369.8040
    F 845.369.8255
    www.providentbanking.com