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

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

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

Key items for the quarter

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

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

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

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

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

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

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

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

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

Key Balance Sheet Changes

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

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

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

About Provident New York Bancorp
Headquartered in Montebello, N.Y., Provident Bank, with $3.1 billion in assets, specializes in the delivery of service and solutions to business owners, their families, and consumers in communities within the greater New York City marketplace through teams of dedicated and experienced relationship managers. Our franchise includes 36 Financial Centers. Provident Bank offers a complete line of commercial, business, and consumer banking products and services. For more information, visit the Provident Bank Web site at www.providentbanking.com.

FORWARD-LOOKING STATEMENTS AND ASSOCIATED RISK FACTORS
In addition to historical information, this earnings release may contain forward-looking statements for purposes of applicable securities laws. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are subject to numerous assumptions, risks and uncertainties. There are a number of important factors described in documents previously filed by the Company with the Securities and Exchange Commission, and other factors that could cause the Company's actual results to differ materially from those contemplated by such forward-looking statements. The Company undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.

Financial information contained in this release should be considered to be an estimate pending the filing with the Securities and Exchange Commission of the Company's Quarterly Report on Form 10-Q for the quarter ended December 31, 2011. While the Company is not aware of any need to revise the results disclosed in this release, accounting literature may require adverse information received by management between the date of this release and the filing of the 10-Q to be reflected in the results of the fiscal period, even though the new information was received by management subsequent to the date of this release.

Reconciliation of Non GAAP Adjusted Earnings:
		Quarter Ended
		December 31,								September 30,
		2011				2010				2011
Net Income (loss)
Net Income (loss)		$	5,717			$	6,720			$	(493	)
Securities net gains and credit losses(1)			(1,159	)			(2,496	)			(2,535	)
Fair value (gain) loss on interest rate caps(1)			2				(139	)			101
Severance (1)			223				-				209
Merger related expenses (1)			147				-				151
Restructuring charges(1) (2)			-				-				2,043
Net adjusted income (loss)		$	4,930			$	4,085			$	(524	)
Earnings per common share
Diluted Earnings per common share		$	0.15			$	0.18			$	(0.01	)
Securities net gains and credit losses(1)			(0.03	)			(0.07	)			(0.07	)
Fair value (gain) loss on interest rate caps(1)			-				-				-
Severance (1)			0.01				-				0.01
Merger related expenses (1)			-				-				-
Restructuring charges(1) (2)			-				-				0.05
Diluted adjusted earnings per common share		$	0.13			$	0.11			$	(0.01	)	*
Non-interest income
Total non-interest income		$	7,176			$	9,883			$	9,056
Securities net gains and credit losses			(1,951	)			(4,202	)			(4,268	)
Fair value (gain) loss on interest rate caps			3				(234	)			170
Adjusted non interest-income		$	5,228			$	5,447			$	4,958
Non-interest expense
Total non-interest expense		$	20,721			$	21,269			$	24,382
Severance			(376	)			-				(352	)
Merger related expenses			(247	)			-				(255	)
Restructuring charges			-				-				(2,849	)
Adjusted non interest-expense		$	20,098			$	21,269			$	20,926
(1)After marginal tax effect 40.61%
*Rounding
(2)A valuation allowance for $342,000 was established for capital losses related to certain asset write-offs

Provident New York Bancorp and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION
(unaudited, in thousands, except share and per share data)
					December 31,				September 30,
					2011				2011
Assets:
Cash and due from banks					$	43,687			$	281,512
Total securities						967,538				849,884
Loans held for sale						2,142				4,176
Loans:
	One- to four-family residential mortgage loans					385,552				389,765
	Commercial real estate, commercial business					1,008,440				913,279
	Acquisition, development and construction loans					161,990				175,931
	Consumer loans					219,911				224,824
			Total loans, gross			1,775,893				1,703,799
	Allowance for loan losses					(28,245	)			(27,917	)
			Total loans, net			1,747,648				1,675,882
Federal Home Loan Bank stock, at cost						21,789				17,584
Premises and equipment, net						39,860				40,886
Goodwill						160,861				160,861
Other amortizable intangibles						4,306				4,629
Bank owned life insurance						57,485				56,967
Foreclosed properties						5,625				5,391
Other assets						33,225				39,630
			Total assets		$	3,084,166			$	3,137,402
Liabilities:
	Deposits
		Retail			$	166,972			$	194,299
		Commercial				307,004				296,505
		Municipal				14,870				160,422
		Personal NOW deposits				178,226				164,637
		Business NOW deposits				33,844				37,092
		Municipal NOW deposits				98,847				200,773
			Total transaction accounts			799,763				1,053,728
		Savings				444,803				429,825
		Money market deposits				579,955				509,483
		Certificates of deposit				311,034				303,659
			Total deposits			2,135,555				2,296,695
	Borrowings					417,043				323,522
	Borrowings Senior Note					51,500				51,499
	Mortgage escrow funds and other liabilities					42,386				34,552
			Total liabilities			2,646,484				2,706,268
Stockholders' equity						437,682				431,134
			Total liabilities and stockholders' equity		$	3,084,166			$	3,137,402
Shares of common stock outstanding at period end						37,883,008				37,864,008
Book value per share					$	11.55			$	11.39

Provident New York Bancorp and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (LOSS)
(unaudited, in thousands, except share and per share data)
											Quarter
			Quarter Ended								Ended
			December 31,								September 30,
			2011				2010				2011
Interest and dividend income:
	Loans and loan fees		$	22,149			$	23,205			$	21,995
	Securities taxable			3,990				3,530				3,825
	Securities non-taxable			1,774				1,925				1,786
	Other earning assets			255				400				211
				28,168				29,060				27,817
Interest expense:
	Deposits			1,313				1,642				1,384
	Borrowings			3,617				4,234				3,642
Total interest expense				4,930				5,876				5,026
Net interest income				23,238				23,184				22,791
Provision for loan losses				1,950				2,100				8,784
Net interest income after provision for loan losses				21,288				21,084				14,007
Non-interest income:
	Deposit fees and service charges		$	2,790			$	2,767			$	2,727
	Net gain on sales of securities			1,989				4,202				4,519
	Other than temporary loss on securities			(38	)			-				(251	)
	Title insurance fees			260				363				275
	Bank owned life insurance			518				494				514
	Gain on sale of loans			440				542				166
	Investment management fees			765				743				733
	Fair value gain (loss) on interest rate caps			(3	)			234				(170	)
	Other			455				538				543
Total non-interest income				7,176				9,883				9,056
Non-interest expense:
	Compensation and benefits			10,549				11,228				10,129
	Stock-based compensation plans			275				279				303
	Merger related expenses			247				-				255
	Restructuring charge(severance/branch relocation)			376				-				3,201
	Occupancy and office operations			3,701				3,635				3,693
	Advertising and promotion			613				953				677
	Professional fees			927				1,062				1,147
	Data and check processing			672				642				718
	Amortization of intangible assets			323				412				338
	FDIC insurance and regulatory assessments			728				768				636
	ATM/debit card expense			411				393				425
	Foreclosed property expense (income)			205				(84	)			677
	Other			1,694				1,981				2,183
Total non-interest expense				20,721				21,269				24,382
Income (Loss) before income tax expense				7,743				9,698				(1,319	)
Income tax (benefit) expense				2,026				2,978				(826	)
Net income			$	5,717			$	6,720			$	(493	)
Per common share:
	Basic (loss) earnings		$	0.15			$	0.18			$	(0.01	)
	Diluted (loss) earnings			0.15				0.18				(0.01	)
	Dividends declared			0.06				0.06				0.06
Weighted average common shares:
	Basic			37,252,464				37,552,245				37,332,121
	Diluted			37,252,464				37,552,245				37,332,245

Selected Financial Condition Data:				Three Months Ended
(in thousands except share and per share data)				12/31/11			09/30/11				06/30/11			03/31/11				12/31/10
End of Period
Total assets				$	3,084,166		$	3,137,402			$	2,976,057		$	2,919,291			$	2,940,513
Loans, gross (1)					1,775,893			1,703,799				1,685,272			1,684,827				1,699,502
Securities available for sale					785,462			739,844				919,805			833,179				869,996
Securities held to maturity					182,076			110,040				25,425			28,054				30,425
Bank owned life insurance					57,485			56,967				56,454			51,985				51,433
Goodwill					160,861			160,861				160,861			160,861				160,861
Other amortizable intangibles					4,306			4,629				4,967			2,857				3,229
Other non-earning assets					78,710			85,907				88,321			96,809				94,933
Deposits					2,135,555			2,296,695				2,098,073			2,089,904				1,980,068
Borrowings					468,543			375,021				401,831			379,441				495,783
Equity					437,682			431,134				429,037			420,269				419,642
Other comprehensive income related to investment securities reflected in stockholders' equity					15,823			13,604				5,769			(3,146	)			(2,932	)
Average Balances
Total assets				$	3,062,520		$	2,978,273			$	2,915,988		$	2,940,299			$	2,961,458
Loans, gross:
	Real estate- residential mortgage				385,269			398,420				384,582			386,592				400,229
	Real estate- commercial mortgage				752,325			681,165				648,371			619,145				606,701
	Real estate- Acquisition, Development & Construction				172,155			186,398				198,120			216,914				226,816
	Commercial and industrial				203,929			208,181				222,128			229,632				236,390
	Consumer loans				224,422			226,687				228,993			232,712				237,106
Loans total (1)					1,738,100			1,700,851				1,682,194			1,684,995				1,707,242
Securities (taxable)					696,293			717,893				688,445			684,834				692,346
Securities (non-taxable)					205,366			208,692				208,643			214,634				221,802
Total earning assets					2,715,027			2,634,941				2,580,429			2,594,131				2,628,815
Non earning assets					347,493			343,332				335,559			346,168				332,643
Non-interest bearing checking					500,621			486,504				464,197			468,031				470,873
Interest bearing NOW accounts					398,885			309,729				296,677			338,503				317,876
Total transaction accounts					899,506			796,233				760,874			806,534				788,749
Savings (including mortgage escrow funds)					445,236			461,566				444,913			416,777				405,177
Money market deposits					577,387			504,476				529,286			490,215				433,865
Certificates of deposit					302,713			371,907				346,903			367,099				406,241
Total deposits and mortgage escrow					2,224,842			2,134,182				2,081,976			2,080,625				2,034,032
Total interest bearing deposits					1,724,221			1,647,678				1,617,779			1,612,594				1,563,159
Borrowings					392,785			391,391				397,531			420,069				481,939
Equity					431,129			433,841				424,961			419,847				428,900
Selected Operating Data:
Condensed Tax Equivalent Income (Loss) Statement
Interest and dividend income				$	28,168		$	27,817			$	27,934		$	27,803			$	29,060
Tax equivalent adjustment*					955			962				985			1,024				1,036
Interest expense					4,930			5,026				5,130			5,292				5,876
		Net interest income (tax equivalent)			24,193			23,753				23,789			23,535				24,220
Provision for loan losses					1,950			8,784				3,600			2,100				2,100
		Net interest income after provision for loan losses			22,243			14,969				20,189			21,435				22,120
Non-interest income					7,176			9,056				5,217			5,795				9,883
Non-interest expense					20,721			24,382				22,669			21,791				21,269
Income (loss) before income tax expense					8,698			(357	)			2,737			5,439				10,734
Income tax expense (tax equivalent)*					2,981			136				798			1,866				4,014
		Net income (loss)		$	5,717		$	(493	)		$	1,939		$	3,573			$	6,720
(1) Does not reflect allowance for loan losses of $28,245, $27,917, $29,385, $30,130, and $31,036.
* Tax exempt income assumed at a statutory 35% federal rate

		Three Months Ended
		12/31/11				09/30/11				06/30/11				03/31/11				12/31/10
Performance Ratios (annualized)
Return on Average Assets			0.74	%			-0.07	%			0.27	%			0.49	%			0.90	%
Return on Average Equity			5.26	%			-0.45	%			1.83	%			3.45	%			6.22	%
Non-Interest Income to Average Assets			0.93	%			1.21	%			0.72	%			0.80	%			1.32	%
Non-Interest Expense to Average Assets			2.68	%			3.25	%			3.12	%			3.01	%			2.85	%
Operating Efficiency Adjusted (2)			67.80	%			70.24	%			70.99	%			73.56	%			70.59	%
Analysis of Net Interest Income
Yield on Loans			5.13	%			5.22	%			5.41	%			5.40	%			5.47	%
Yield on Investment Securities- Tax Equivalent			2.96	%			2.81	%			2.87	%			2.91	%			2.82	%
Yield on Earning Assets- Tax Equivalent			4.26	%			4.33	%			4.50	%			4.51	%			4.54	%
Cost of Deposits			0.23	%			0.26	%			0.29	%			0.31	%			0.32	%
Cost of Borrowings			3.65	%			3.69	%			3.67	%			3.58	%			3.49	%
Cost of Interest Bearing Liabilities			0.92	%			0.98	%			1.02	%			1.06	%			1.14	%
Net Interest Rate Spread- Tax Equivalent Basis			3.34	%			3.35	%			3.48	%			3.45	%			3.40	%
Net Interest Margin- Tax Equivalent Basis			3.54	%			3.58	%			3.70	%			3.68	%			3.66	%
Capital Information Data
Tier 1 Leverage Ratio- Bank Only			8.51	%			8.14	%			8.77	%			9.10	%			8.89	%
Tier 1 Risk-Based Capital- Bank Only			247,433				241,196				246,291				251,338				247,503
Total Risk-Based Capital- Bank Only			273,843				265,307				271,483				276,303				272,071
Tangible Capital Consolidated (3)			272,515				265,644				263,209				256,551				255,552
Tangible Capital as a % of Tangible Assets Consolidated (3)			9.34	%			8.94	%			9.37	%			9.31	%			9.20	%
Shares Outstanding			37,883,008				37,864,008				38,005,866				38,072,942				38,198,686
Shares Repurchased during qrtr(open market)			-				183,000				66,108				125,744				82,602
Basic weighted common shares outstanding			37,252,464				37,332,121				37,368,391				37,496,395				37,552,245
Diluted common shares outstanding			37,252,464				37,332,245				37,370,213				37,497,467				37,552,245
Basic (loss) earnings per common share		$	0.15			$	(0.01	)		$	0.05			$	0.10			$	0.18
Diluted (loss) earnings per common share			0.15				(0.01	)			0.05				0.10				0.18
Dividends Paid per common share			0.06				0.06				0.06				0.06				0.06
Book Value per common share			11.55				11.39				11.29				11.04				10.99
Tangible Book Value per common share (3)			7.19				7.02				6.93				6.74				6.69
Asset Quality Measurements
Non-performing loans (NPLs): non-accrual		$	38,896			$	36,477			$	42,226			$	29,765			$	30,690
Non-performing loans (NPLs): still accruing			7,017				4,090				5,837				7,412				5,536
Other Real Estate Owned			5,625				5,391				5,184				5,351				3,585
Non-performing assets (NPAs)			51,538				45,958				53,247				42,528				39,811
Troubled Debt Restructures still accruing			8,543				8,736				7,447				21,954				17,581
Net Charge-offs			1,622				10,252				4,345				3,006				1,907
Net Charge-offs as % of average loans (annualized)			0.37	%			2.41	%			1.03	%			0.71	%			0.45	%
NPLs as % of total loans			2.59	%			2.38	%			2.85	%			2.21	%			2.13	%
NPAs as % of total assets			1.67	%			1.46	%			1.79	%			1.46	%			1.35	%
Allowance for loan losses as % of NPLs			62	%			69	%			61	%			81	%			86	%
Allowance for loan losses as % of total loans			1.59	%			1.64	%			1.74	%			1.79	%			1.83	%
Special mention loans			18,424				23,026				24,099				27,050				63,588
Substandard / doubtful loans			99,312				93,989				103,825				113,927				114,855

(2) The efficiency ratio represents non-interest expense divided by the sum of net interest income and non-interest income. As in the case of net interest income, generally, net interest income as utilized in calculating the efficiency ratio is typically expressed on a tax-equivalent basis. Moreover, most institutions, in calculating the the efficiency ratio, also adjust both noninterest expense and noninterest income to exclude from these items (as calculated under generally accepted accounting principles) certain component elements, such as non-recurring charges, other real estate expense and amortization of intangibles (deducted from non interest expense) and security transactions and other non-recurring items (excluded from non interest income). We follow these practices.

(3) Provident Bank provides supplemental reporting of Non-GAAP tangible equity ratios as management believes this information is useful to investors.

The following table shows the reconciliation of tangible equity and the tangible equity ratio:

		12/31/11				09/30/11				06/30/11				03/31/11				12/31/10
Total Assets		$	3,084,166			$	3,137,402			$	2,976,057			$	2,919,291			$	2,940,513
Goodwill and other amortizable intangibles			(165,167	)			(165,490	)			(165,828	)			(163,718	)			(164,090	)
Tangible Assets		$	2,918,999			$	2,971,912			$	2,810,229			$	2,755,573			$	2,776,423
Stockholders' equity			437,682				431,134				429,037				420,269				419,642
Goodwill and other amortizable intangibles			(165,167	)			(165,490	)			(165,828	)			(163,718	)			(164,090	)
Tangible Stockholders' equity		$	272,515			$	265,644			$	263,209			$	256,551			$	255,552
Outstanding Shares			37,883,008				37,864,008				38,005,866				38,072,942				38,198,686
Tangible capital as a % of tangible assets (consolidated)			9.34	%			8.94	%			9.37	%			9.31	%			9.20	%
Tangible book value per share		$	7.19			$	7.02			$	6.93			$	6.74			$	6.69