MONTEBELLO, NY -- (Marketwire) -- 01/23/13 -- 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 equivalent (2) 2.29% 2.44% 2.79% 2.81% 2.96% Yield on earning assets - tax equivalent (2) 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 basis(2) 3.19% 3.18% 3.42% 3.38% 3.34% Net interest margin- tax equivalent basis(2) 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 Gotham(1) 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 asses 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.
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
Source: Provident New York Bancorp
distributed by
|