MONTEBELLO, NY--(Marketwire - Jan 23, 2012) - Provident New York Bancorp (
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