SOURCE: Provident NY Bancorp

Provident NY Bancorp

July 25, 2011 17:29 ET

Provident New York Bancorp Announces Third Quarter 2011 Earnings of $0.05 per Diluted Share

MONTEBELLO, NY--(Marketwire - Jul 25, 2011) - Provident New York Bancorp (NASDAQ: PBNY), the parent company of Provident Bank, today announced third-quarter results for the quarter ended June 30, 2011. Net income for the quarter was $1.9 million, or $0.05 per diluted share, compared to net income of $4.8 million, or $0.12 per diluted share for same quarter last year and net income of $3.6 million, or $0.10 per diluted share for the linked quarter ended March 31, 2011. As described in more detail below gains on sales of securities and loans affected results in both comparative quarters to a greater extent than they did in the current quarter. The current quarter was also negatively impacted by $1.5 million in pre-tax costs related to the retirement of the prior CEO as well as $1.5 million in additional loan loss provisions (discussed in more detail in the credit quality section of this release). Net income for fiscal 2011 year-to-date was $12.2 million, or $0.33 per diluted share compared to $15.1 million or $0.39 per diluted share for year-to-date fiscal 2010.

President's Comments
Jack Kopnisky, President and CEO, commented, "In joining Provident, I am excited about the opportunity to put the Company on a growth track while maintaining its historic risk management culture. Provident benefits from a strong market position, low cost of deposits, long term funding sources, and a strong infrastructure to support growth. During the fourth quarter a comprehensive review of all operations and opportunities at Provident will be completed and new strategies designed to drive growth in revenues and earnings will be implemented.

"The third quarter results saw several positive indicators that should support improved performance. Commercial loan originations were $125.5 million, up $38 million over the linked quarter. The commercial loan pipeline is up 48 percent over the linked quarter and up 59 percent over the same quarter of the previous year. Criticized / Classified loans declined by $13.1 million as $5.1 million in loans were upgraded and $4.3 million of these loans were paid off. However, non-performing loans increased by $10.9 million and net charge-offs increased to $4.3 million for the quarter, as a result of an ADC relationship previously classified as a performing substandard TDR being moved to non-accrual status. We remain cautious in our credit outlook as we have continued to see fluctuations in levels of net charge-offs and problem assets."

Key items for the quarter

  • Earnings were $0.07 per diluted share, excluding the after tax effect of securities gains and credit losses, the fair value adjustment of interest rate caps, and defined benefit settlement charges and charges associated with change in the CEO. This compares to $0.09 for the linked quarter and $0.12 for the third quarter of fiscal 2010. 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 more variable components of income.
  • Provisions for loan losses increased $1.5 million to $3.6 million compared to $2.1 million for the linked quarter, and increased $850,000 from $2.8 million for the same quarter last year.
  • Commercial real estate and C&I loan originations were $87.6 million compared to $63.5 million for the linked quarter and $80.2 million for the same quarter last year.
  • ADC and small business loan originations were $37.9 million compared to $24.1 million for the linked quarter and $50.2 million for the same quarter last year.
  • Net charge-offs of $4.3 million are up $1.3 million from the linked quarter and up $2.2 million from the same quarter last year. Charge-offs during the quarter included loans with $1.0 million previously provisioned for as of March 31, 2011.
  • Substandard loans declined $10.1 million to $103.8 million as of June 30, 2011 primarily due to upgrades to pass and the refinancing of a large relationship which reduced exposure and improved cash flows. Special mention loans decreased $3.0 million during the quarter. (For discussion of comparative periods see the credit quality section)
  • Non-performing loans, a subset of substandard loans, increased to $48.1 million, up $10.9 million from the linked quarter and are up $19.0 million over the same quarter in the prior year.

Net Interest Income and Margin
Third quarter fiscal 2011 compared with third quarter fiscal 2010
Net interest income was $22.8 million for the third quarter of fiscal 2011, a decrease of $1.4 million from the same quarter of fiscal 2010 as funding costs declined at a slower pace than interest income. The net interest margin on a tax-equivalent basis was 3.70 percent for the third quarter of fiscal 2011, compared to 3.91 percent for the same period a year ago. The tax-equivalent yield on investments decreased 58 basis points and loan yields were down 27 basis points compared to the third quarter fiscal 2010. As a result, the yield on interest-earning assets declined 37 basis points. For the same period, the cost of deposits decreased 8 basis points to 0.29 percent, and the cost of borrowings increased by 4 basis points to 3.67 percent.

Third quarter fiscal 2011 compared with linked quarter ended March 31, 2011
Net interest income for the quarter ended June 30, 2011 increased $293,000 compared to the linked quarter ended March 31, 2011. The tax-equivalent net interest margin increased 2 basis points from 3.68 percent in the linked quarter. The overall yield on loans increased 1 basis point to 5.41 percent. The yield on the investment portfolio decreased 4 basis points. The overall yield on earning assets remained relatively unchanged. The cost of interest-bearing deposits declined 3 basis points, reflecting the already low level of deposit pricing. The average cost of borrowing increased 9 basis points as a result of a change in the mix of shorter and long term advances.

Noninterest Income
Third quarter fiscal 2011 compared with third quarter fiscal 2010
Noninterest income totaled $5.2 million for the third quarter, relatively unchanged from the third quarter of fiscal 2010. Lower gains on sales of securities and loans, and decreased deposit fees and service charges were largely offset by a lower fair value loss on interest rate caps and increased investment management fees.

Third quarter fiscal 2011 compared with linked quarter ended March 31, 2011
Noninterest income decreased $578,000 on a linked-quarter basis, mainly due to lower gains on the sale of securities and loans partially offset by a lower fair value loss on interest rate caps in the linked quarter.

Noninterest Expense
Third quarter fiscal 2011 compared with third quarter fiscal 2010
Noninterest expense increased $1.9 million, when compared to the third quarter fiscal 2010. The increase is primarily due to charges of $1.5 million associated with the change in CEO and the related defined benefit settlement charges, REO expenses and occupancy expense offset in part by lower advertising and promotion, regulatory fees from FDIC insurance and intangible amortization. In addition the third quarter of 2010 benefited from a recovery of $300,000 related to servicing costs of our ATM and debit card program.

Third quarter fiscal 2011 compared with the linked quarter ended March 31, 2011
On a quarter-to-quarter basis, noninterest expense increased $878,000 or 4.0 percent. Increases were due to the change in CEO and the related defined benefit settlement charge. Absent these costs non-interest expense would have declined 1.6 percent.

Income Taxes
The Company recorded an income tax credit for the third quarter of $187,000 compared to an effective tax rate of 20.6 percent for the same period in fiscal 2010 (increased effect of BOLI and tax-exempt municipal security interest relative to pre-tax income). On a year-to-date basis the effective tax rate was 23 percent for fiscal 2011 and 24 percent for 2010.

Credit Quality
Nonperforming loans increased to $48.1 million at June 30, 2011 from $37.2 million at March 31, 2011, as a $12 million ADC loan relationship previously classified as a performing TDR was moved to nonperforming status due to a significant decline in sales activity in the past quarter. Net charge offs for the quarter ended June 30, 2011 were $4.3 million compared to $3.0 million for the linked quarter and $2.2 million for the quarter ended June 30, 2010. The increased was caused by charges related to the previously mentioned ADC relationship. Our provision was $3.6 million for the current quarter, decreasing our allowance for loan losses to $29.4 million, or 61 percent of non-performing loans at June 30, 2011. This compares to 81 percent at March 31, 2011 and 115 percent at September 30, 2010. Substandard loans at June 30, 2011 were $103.8 million, down from $113.9 million at March 31, 2011, and down from $132.1 million at September 30, 2010. Special mention loans were $24.1 million compared to $27.1 million at March 31, 2011 and $37.9 million at September 30, 2010.

Key Balance Sheet Changes

  • The balance sheet grew $56.8 million or 1.9 percent compared to March 31, 2011 due to an increase in securities partly offset by a decrease in cash and due from banks.
  • Deposits decreased $3.7 million compared to March 31, 2011 excluding municipal and wholesale deposits. Transaction accounts excluding municipal deposits increased $2.9 million compared to March 31, 2011.
  • Total loan originations during third quarter fiscal 2011 were $148.3 million compared to $117.4 from the linked quarter. Commercial loan balances increased by $10.3 million over March 31, 2011 levels. Residential 1-4 family mortgages declined over the same period by $8.9 million.
  • Securities increased $84.0 million over March 31, 2011 levels, as $147.3 million in securities were purchased during the third quarter. Securities purchased during the period had durations between .25 and 6.44 years with weighted average yields of 2.42 percent.
  • Borrowings increased over March 31, 2011 levels by $22.4 million. The Company supplemented its borrowings with $101.4 million in wholesale deposits at a weighted average rate of 0.29 percent at June 30, 2011 compared to $43.4 million in wholesale deposits at a weighted average rate of 0.53 percent at March 31, 2011.

Capital and Liquidity
Provident Bank remained well-capitalized at June 30, 2011 with the Bank's Tier 1 leverage ratio at 8.8 percent. The Company's tangible capital as a percent of tangible assets increased 6 basis points from March 31, 2011 levels to 9.37 percent at June 30, 2011, while tangible book value per share increased to $6.93 from $6.74 at March 31, 2011 (a reconciliation of these Non-GAAP equity ratios are included with the ratios listed on the last page). Total capital increased $8.8 million from March 31, 2011, to $429.0 million at June 30, 2011, due to a net decrease of $203,000 in the Company's retained earnings, a $625,000 increase in treasury stock, an increase of $282,000 due to stock based compensation items, and a $9.3 million improvement in accumulated other comprehensive income. The Company repurchased in the open market 66,108 shares during the third fiscal quarter. The remaining authorization for share repurchases is 959,713 shares.

Other Information
The company holds four private label mortgage backed securities with an amortized cost of $5.6 million and an estimated fair value of $5.3 million. One security included within these amounts has a carrying value of $1.9 million after recording an other than temporary impairment charge of $27,000. The amortized cost of this security is $2.1 million. It is not likely that the Company will be required to sell this security prior to recovery of its amortized cost basis less any current-period credit loss.

About Provident New York Bancorp
Headquartered in Montebello, New York, Provident New York Bancorp is the parent company of Provident Bank, an independent full-service community bank. Provident Bank operates 35 branches that serve the Hudson Valley region. The Bank offers a complete line of commercial, retail and investment management services. For more information, visit the Company's 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 June 30, 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 Nine Months Ended
June 30, March 31, June 30,
2011 2010 2011 2011 2010
Net Income
Net Income $ 1,939 $ 4,756 $ 3,573 $ 12,232 $ 15,089
Securities net gains and credit losses1 (306 ) (561 ) (444 ) (3,246 ) (3,098 )
Defined benefit settlement charge/change in CEO1 887 - 165 1,052 -
Fair value (gain) loss on interest rate caps1 154 353 1 16 494
Net adjusted income $ 2,674 $ 4,548 $ 3,295 $ 10,054 $ 12,485
Earnings per common share
Diluted Earnings per common share $ 0.05 $ 0.12 $ 0.10 $ 0.33 $ 0.39
Securities net gains and credit losses1 (0.01 ) (0.01 ) (0.01 ) (0.09 ) (0.08 )
Defined benefit settlement charge/change in CEO1 0.02 - - 0.03 -
Fair value loss on interest rate caps1 - 0.01 - - 0.01
Diluted adjusted earnings per common share $ 0.07 * $ 0.12 $ 0.09 $ 0.27 * $ 0.33 *
Non-interest income
Total non-interest income $ 5,217 $ 5,281 $ 5,795 $ 20,896 $ 19,487
Securities net gains and credit losses (515 ) (945 ) (748 ) (5,465 ) (5,217 )
Fair value (gain) loss on interest rate caps 259 595 2 27 831
Adjusted non interest-income $ 4,961 $ 4,931 $ 5,049 $ 15,458 $ 15,101
Non-interest expense
Total non-interest expense $ 22,669 $ 20,741 $ 21,791 $ 65,729 $ 61,808
Defined benefit settlement charge/change in CEO1 (1,494 ) - (278 ) (1,772 ) -
Adjusted non interest-expense $ 21,175 $ 20,741 $ 21,513 $ 63,957 $ 61,808
1After marginal tax effect 40.61%
*Rounding
Provident New York Bancorp and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION
(unaudited, in thousands, except share and per share data)
June 30, September 30, March 31,
2011 2010 2011
Assets:
Cash and due from banks $ 45,530 $ 90,872 $ 72,670
Total securities 945,230 934,860 861,233
Loans held for sale - 5,890 -
Loans:(1)
One- to four-family residential mortgage loans 402,072 434,900 411,014
Commercial real estate, commercial business 863,370 797,159 841,129
Acquisition, development and construction loans 193,312 231,258 205,293
Consumer loans 226,518 238,224 227,391
Total loans, gross 1,685,272 1,701,541 1,684,827
Allowance for loan losses (29,385 ) (30,843 ) (30,130 )
Total loans, net 1,655,887 1,670,698 1,654,697
Federal Home Loan Bank stock, at cost 18,807 19,572 18,179
Premises and equipment, net 42,249 43,598 42,830
Goodwill 160,861 160,861 160,861
Other amortizable intangibles 4,967 3,640 2,857
Bank owned life insurance 56,454 50,938 51,985
Other assets 46,072 40,096 53,979
Total assets $ 2,976,057 $ 3,021,025 $ 2,919,291
Liabilities:
Deposits
Retail $ 174,652 $ 174,731 $ 174,286
Commercial 279,659 277,217 273,876
Municipal 15,559 77,909 15,641
Personal NOW deposits 155,141 139,517 153,388
Business NOW deposits 29,892 34,105 34,870
Municipal NOW deposits 113,876 241,995 122,153
Total transaction accounts 768,779 945,474 774,214
Savings 428,120 392,321 420,775
Money market deposits 512,478 427,334 546,173
Certificates of deposit 388,696 377,573 348,742
Total deposits 2,098,073 2,142,702 2,089,904
Borrowings 350,333 363,751 327,943
Borrowings Senior Note 51,498 51,496 51,498
Mortgage escrow funds and other liabilities 47,116 32,121 29,677
Total liabilities 2,547,020 2,590,070 2,499,022
Stockholders' equity 429,037 430,955 420,269
Total liabilities and stockholders' equity $ 2,976,057 $ 3,021,025 $ 2,919,291
Shares of common stock outstanding at period end 38,005,866 38,262,288 38,072,942
Book value per share $ 11.29 $ 11.26 $ 11.04
(1) Certain amounts from prior periods have been reclassed to conform to current fiscal year presentation
Provident New York Bancorp and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(unaudited, in thousands, except share and per share data)
Quarter
Quarter Ended Ended Nine Months Ended
June 30, March 31, June 30,
2011 2010 2011 2011 2010
Interest and dividend income:
Loans and loan fees $ 22,261 $ 23,393 $ 22,039 $ 67,505 $ 69,448
Securities taxable 3,607 4,716 3,531 10,668 14,192
Securities non-taxable 1,829 2,037 1,901 5,655 5,833
Other earning assets 237 262 332 968 980
27,934 30,408 27,803 84,796 90,453
Interest expense:
Deposits 1,493 1,849 1,585 4,720 6,840
Borrowings 3,637 4,361 3,707 11,578 13,595
Total interest expense 5,130 6,210 5,292 16,298 20,435
Net interest income 22,804 24,198 22,511 68,498 70,018
Provision for loan losses 3,600 2,750 2,100 7,800 7,750
Net interest income after provision for loan losses 19,204 21,448 20,411 60,698 62,268
Non-interest income:
Deposit fees and service charges $ 2,674 $ 2,796 $ 2,643 $ 8,085 $ 8,533
Net gain on sales of securities 542 945 748 5,492 5,217
Credit loss on security (OTTI) (27 ) - - (27 ) -
Title insurance fees 312 336 274 949 884
Bank owned life insurance 488 503 553 1,535 1,553
Gain on sale of loans 9 45 310 861 445
Investment management fees 815 756 789 2,347 2,311
Fair value gain (loss) interest rate caps (259 ) (595 ) (2 ) (27 ) (831 )
Other 663 495 480 1,681 1,375
Total non-interest income 5,217 5,281 5,795 20,896 19,487
Non-interest expense:
Compensation and benefits 11,122 11,061 11,183 33,533 32,149
Defined benefit settlement charge/CEO change 1,494 - 278 1,772 -
Stock-based compensation plans 284 172 296 859 1,205
Occupancy and office operations 3,423 3,168 3,757 10,815 10,031
Advertising and promotion 855 1,041 843 2,651 2,577
Professional fees 1,137 1,063 1,043 3,242 2,811
Data and check processing 712 571 691 2,045 1,698
Amortization of intangible assets 305 452 371 1,088 1,417
FDIC insurance and regulatory assessments 587 927 919 2,274 2,642
ATM/debit card expense 400 164 366 1,159 1,254
Foreclosed property expense 461 69 117 494 116
Other 1,889 2,053 1,927 5,797 5,908
Total non-interest expense 22,669 20,741 21,791 65,729 61,808
Income before income tax expense 1,752 5,988 4,415 15,865 19,947
Income tax expense (187 ) 1,232 842 3,633 4,858
Net income $ 1,939 $ 4,756 $ 3,573 $ 12,232 $ 15,089
Per common share:
Basic earnings $ 0.05 $ 0.12 $ 0.10 $ 0.33 $ 0.39
Diluted earnings 0.05 0.12 0.10 0.33 0.39
Dividends declared 0.06 0.06 0.06 0.18 0.18
Weighted average common shares:
Basic 37,368,391 38,086,535 37,496,395 37,472,548 38,284,965
Diluted 37,370,213 38,086,579 37,497,467 37,473,167 38,317,220
Selected Financial Condition Data:
Three Months Ended
(in thousands except share and per share data) 06/30/11 03/31/11 12/31/10 09/30/10 06/30/10
End of Period
Total assets $ 2,976,057 $ 2,919,291 $ 2,940,513 $ 3,021,025 $ 2,963,706
Loans, gross (1) 1,685,272 1,684,827 1,699,502 1,701,541 1,705,737
Securities available for sale 919,805 833,179 869,996 901,012 878,370
Securities held to maturity 25,425 28,054 30,425 33,848 40,452
Bank owned life insurance 56,454 51,985 51,433 50,938 50,447
Goodwill 160,861 160,861 160,861 160,861 160,861
Other amortizable intangibles 4,967 2,857 3,229 3,640 4,072
Other non-earning assets 88,321 96,809 94,933 83,694 85,398
Deposits 2,098,073 2,089,904 1,980,068 2,142,702 1,961,005
Borrowings 401,831 379,441 495,783 415,247 526,912
Equity 429,037 420,269 419,642 430,955 429,115
Other comprehensive income related to investment securities reflected in stockholders' equity
5,769

(3,146
)
(2,932
)
12,621

9,953
Average Balances
Total assets $ 2,915,988 $ 2,940,299 $ 2,961,458 $ 2,919,961 $ 2,928,626
Loans, gross:
Real estate- residential mortgage 384,582 386,592 400,229 417,584 427,801
Real estate- commercial mortgage 648,371 619,145 606,701 570,023 552,888
Real estate- Acquisition, Development & Construction 198,120 216,914 226,816 227,165 222,958
Commercial and industrial 222,128 229,632 236,390 243,691 236,275
Consumer loans 228,993 232,712 237,106 239,908 243,484
Loans total (1) 1,682,194 1,684,995 1,707,242 1,698,371 1,683,406
Securities (taxable) 688,445 684,834 692,346 655,794 693,554
Securities (non-taxable) 208,643 214,634 221,802 222,024 219,121
Total earning assets 2,580,429 2,594,131 2,628,815 2,578,024 2,594,264
Non earning assets 335,559 346,168 332,643 341,937 334,362
Non-interest bearing checking 464,197 468,031 470,873 449,666 430,387
Interest bearing NOW accounts 296,677 338,503 317,876 266,950 263,709
Total transaction accounts 760,874 806,534 788,749 716,616 694,096
Savings (including mortgage escrow funds) 444,913 416,777 405,177 424,012 413,315
Money market deposits 529,286 490,215 433,865 421,989 428,612
Certificates of deposit 346,903 367,099 406,241 415,059 467,360
Total deposits and mortgage escrow 2,081,976 2,080,625 2,034,032 1,977,676 2,003,383
Total interest bearing deposits 1,617,779 1,612,594 1,563,159 1,528,010 1,572,996
Borrowings 397,531 420,069 481,939 486,060 481,460
Equity 424,961 419,847 428,900 430,862 424,221
Selected Operating Data:
Condensed Tax Equivalent Income Statement
Interest and dividend income $ 27,934 $ 27,803 $ 29,060 $ 29,321 $ 30,408
Tax equivalent adjustment* 985 1,024 1,036 1,045 1,098
Interest expense 5,130 5,292 5,876 6,005 6,210
Net interest income (tax equivalent) 23,789 23,535 24,220 24,361 25,296
Provision for loan losses 3,600 2,100 2,100 2,250 2,750
Net interest income after provision for loan losses
20,189

21,435

22,120

22,111

22,546
Non-interest income 5,217 5,795 9,883 7,714 5,281
Non-interest expense 22,669 21,791 21,269 21,362 20,741
Income before income tax expense 2,737 5,439 10,734 8,463 7,086
Income tax expense (tax equivalent)* 798 1,866 4,014 3,060 2,330
Net income $ 1,939 $ 3,573 $ 6,720 $ 5,403 $ 4,756
(1) Does not reflect allowance for loan losses of $29,385, $30,130, $31,036, $30,843 and $31,021.
* Tax exempt income assumed at a 35% federal rate
Three Months Ended
06/30/11 03/31/11 12/31/10 09/30/10 06/30/10
Performance Ratios (annualized)
Return on Average Assets 0.27 % 0.49 % 0.90 % 0.73 % 0.65 %
Return on Average Equity 1.83 % 3.45 % 6.22 % 4.98 % 4.50 %
Non-Interest Income to Average Assets 0.72 % 0.80 % 1.32 % 1.05 % 0.72 %
Non-Interest Expense to Average Assets 3.12 % 3.01 % 2.85 % 2.90 % 2.84 %
Operating Efficiency Adjusted (2) 70.99 % 73.56 % 70.59 % 71.09 % 66.89 %
Analysis of Net Interest Income
Yield on Loans 5.41 % 5.40 % 5.47 % 5.48 % 5.68 %
Yield on Investment Securities- Tax Equivalent 2.87 % 2.91 % 2.82 % 3.16 % 3.45 %
Yield on Earning Assets- Tax Equivalent 4.50 % 4.51 % 4.54 % 4.67 % 4.87 %
Cost of Interest Bearing Deposits 0.37 % 0.40 % 0.42 % 0.44 % 0.47 %
Cost of Borrowings 3.67 % 3.58 % 3.49 % 3.53 % 3.63 %
Cost of Interest Bearing Liabilities 1.02 % 1.06 % 1.14 % 1.18 % 1.21 %
Net Interest Rate Spread- Tax Equivalent Basis 3.48 % 3.45 % 3.40 % 3.49 % 3.66 %
Net Interest Margin- Tax Equivalent Basis 3.70 % 3.68 % 3.66 % 3.75 % 3.91 %
Capital Information Data
Tier 1 Leverage Ratio- Bank Only 8.77 % 9.10 % 8.89 % 8.43 % 8.75 %
Tier 1 Risk-Based Capital- Bank Only 246,291 251,338 247,503 240,230 244,299
Total Risk-Based Capital- Bank Only 271,483 276,303 272,071 265,148 268,996
Tangible Capital Consolidated (3) 263,209 256,551 255,552 266,454 264,182
Tangible Capital as a % of Tangible Assets Consolidated (3) 9.37 % 9.31 % 9.20 % 9.33 % 9.44 %
Shares Outstanding 38,005,866 38,072,942 38,198,686 38,262,288 38,628,477
Shares Repurchased during qrtr(open market) 66,108 125,744 82,602 364,000 233,000
Basic weighted common shares outstanding 37,368,391 37,496,395 37,552,245 37,793,860 38,086,535
Diluted common shares outstanding 37,370,213 37,497,467 37,552,245 37,793,860 38,086,579
Basic Earnings per common share $ 0.05 $ 0.10 $ 0.18 $ 0.14 $ 0.12
Diluted Earnings per common share 0.05 0.10 0.18 0.14 0.12
Dividends Paid per common share 0.06 0.06 0.06 0.06 0.06
Book Value per common share 11.29 11.04 10.99 11.26 11.11
Tangible Book Value per common share (3) 6.93 6.74 6.69 6.96 6.84
Asset Quality Measurements
Non-performing loans (NPLs): non-accrual $ 42,226 $ 29,765 $ 30,690 $ 21,413 $ 21,985
Non-performing loans (NPLs): still accruing 5,837 7,412 5,536 5,427 7,069
Other Real Estate Owned 5,184 5,351 3,585 3,891 3,302
Non-performing assets (NPAs) 53,247 42,528 39,811 30,731 32,356
Troubled Debt Restructures still accruing 7,447 21,954 17,581 16,047 414
Net Charge-offs 4,345 3,006 1,907 2,428 2,173
Net Charge-offs as % of average loans (annualized) 1.03 % 0.71 % 0.45 % 0.57 % 0.52 %
NPLs as % of total loans 2.85 % 2.21 % 2.13 % 1.58 % 1.70 %
NPAs as % of total assets 1.79 % 1.46 % 1.35 % 1.02 % 1.09 %
Allowance for loan losses as % of NPLs 61 % 81 % 86 % 115 % 107 %
Allowance for loan losses as % of total loans 1.74 % 1.79 % 1.83 % 1.81 % 1.82 %
(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:
06/30/11 03/31/11 12/31/10 09/30/10 06/30/10
Total Assets $ 2,976,057 $ 2,919,291 $ 2,940,513 $ 3,021,025 $ 2,963,706
Goodwill and other amortizable intangibles (165,828 ) (163,718 ) (164,090 ) (164,501 ) (164,933 )
Tangible Assets $ 2,810,229 $ 2,755,573 $ 2,776,423 $ 2,856,524 $ 2,798,773
Stockholders' equity 429,037 420,269 419,642 430,955 429,115
Goodwill and other amortizable intangibles (165,828 ) (163,718 ) (164,090 ) (164,501 ) (164,933 )
Tangible Stockholders' equity $ 263,209 $ 256,551 $ 255,552 $ 266,454 $ 264,182
Outstanding Shares 38,005,866 38,072,942 38,198,686 38,262,288 38,628,477
Tangible capital as a % of tangible assets (consolidated) 9.37 % 9.31 % 9.20 % 9.33 % 9.44 %
Tangible book value per share $ 6.93 $ 6.74 $ 6.69 $ 6.96 $ 6.84

Contact Information

  • PROVIDENT BANK CONTACT:
    Paul A. Maisch
    EVP & Chief Financial Officer
    Miranda Grimm
    FVP & Controller
    845.369.8040