MONTEBELLO, NY--(Marketwire - Jan 23, 2013) - Provident New York Bancorp (the "Company") (
President's Comments
Jack Kopnisky, President and CEO, commented: "We had a strong first quarter to kick-off our year. Earnings for the quarter were $7.0 million or $0.16 per share, a 23% increase compared to the first quarter of 2012 and an increase of 210% over the linked quarter, which had been significantly impacted by merger-related expenses related to the acquisition of Gotham Bank of New York. Earnings were driven by strong commercial loan growth, solid core deposit growth and our continued management of expenses. We also continue to improve our operating efficiency as our growth in revenues outpaced expenses. Our efficiency ratio was 62.9% for the first quarter of 2013.
"Our credit quality continued to improve across the most important metrics. Non-performing loans of $34 million at December 31, 2012 are down $6.3 million compared to the linked quarter. Our ratio of non-performing loans to total loans declined by 106 basis points to 1.53% at December 31, 2012 as compared to the year ago period. Our allowance for loan losses to non-performing loans increased to 84% at December 31, 2012, and the positive trend in the risk ratings of our loan portfolio continued as well.
"Our overall strategy of focusing primarily on middle market clients has strong momentum. We continue to see significant opportunities for full relationships in the market. Our pipelines of loans, deposits and fee income opportunities continue to be at record highs. These volumes are enabling us to diversify our loan portfolio from higher concentrations of real estate loans to a more balanced portfolio. Overall we are originating approximately 50% of our commercial loans and deposits in our new markets and approximately 50% in our legacy markets.
"We are pleased to report that the integration of the Gotham Bank acquisition is going as planned and is assisting us in accelerating our growth in the New York City market area.
"Finally we continue to maintain strong levels of capital and liquidity. Tier 1 leverage ratio was approximately 8.2% at the Bank level and our total risk-based capital ratio was approximately 13.5%."
Key highlights for the quarter
- Total loan originations were $291.1 million compared to $205.7 million in the linked quarter, and $231.6 million for the first fiscal quarter of 2012.
- Total loans reached $2.2 billion at December 31, 2012, a $73.7 million increase compared to September 30, 2012.
- Our allowance for loan losses remained relatively unchanged at $28.1 million at December 31, 2012, in large part due to the growth in our loan portfolio. The allowance for loan losses as a percentage of total loans was 1.28% at December 31, 2012, compared to 1.33% in the linked quarter. The allowance ratios are inclusive of acquired Gotham loans that were recorded at fair value at acquisition date and for which there is no additional allowance for loan losses at either December 31, 2012 or September 30, 2012.
- Non-performing loans decreased from $39.8 million at September 30, 2012, to $33.6 million at December 31, 2012. The reduction in non-performing loans improved the allowance for loan losses to non-performing loans ratio to 84% at December 31, 2012.
- Provision for loan losses was $3.0 million and decreased by $550 thousand compared to the linked quarter. For the first quarter of fiscal 2012, our provision for loan losses was $2.0 million.
- Net interest margin was 3.37% for the first quarter of fiscal 2013 compared to 3.38% in the linked quarter and 3.54% in the first quarter of fiscal 2012.
Net Interest Income and Margin
First quarter fiscal 2013 compared with first quarter fiscal 2012
Net interest income was $27.9 million for the first quarter of fiscal 2013, up $4.7 million compared to the first quarter of fiscal 2012 due to higher average loan volumes. Reflecting the current interest rate environment, the tax-equivalent yield on investments decreased 67 basis points and loan yields declined nine basis points compared to the first quarter of fiscal 2012. As a result, the yield on interest-earning assets declined 28 basis points to 3.98% on a tax equivalent basis for the first quarter of fiscal 2013. The cost of deposits increased five basis points to 28 basis points from the year ago quarter, while the cost of borrowings decreased by seven basis points to 3.58%. The resulting net interest margin on a tax-equivalent basis was 3.37% for the first quarter of fiscal 2013 compared to 3.54% for the same period a year ago.
First quarter fiscal 2013 compared with linked quarter ended September 30, 2012
Net interest income for the quarter ended December 31, 2012 increased $2.7 million to $27.9 million, compared to $25.2 million for the linked quarter ended September 30, 2012. This was primarily due to higher volumes. The tax-equivalent net interest margin decreased to 3.37% from 3.38% in the linked quarter. Yield on loans increased seven basis points and was 5.04%. Yield on interest earning assets declined three basis points to 3.98% from 4.01% at September 30, 2012. Deposit costs increased by one basis point, while the cost of borrowings decreased seven basis points.
Non-interest Income
First quarter fiscal 2013 compared with first quarter fiscal 2012
Non-interest income increased $483 thousand to $7.7 million for the first quarter of fiscal 2013 compared with first quarter of fiscal 2012. The increase was mainly driven by an increase in gain on sale of loans of $306 thousand given strong residential loan origination volume during the quarter and increases in other loan fees included in other non-interest income of $744 thousand. Net gain on sales of securities decreased by $573 thousand to $1.4 million.
First quarter fiscal 2013 compared with linked quarter ended September 30, 2012
Non-interest income decreased $1.4 million to $7.7 million for the first fiscal quarter of 2013 compared to the linked quarter ended September 30, 2012. Net gain on sales of securities declined by $1.7 million to $1.4 million for the first quarter of fiscal 2013 compared to $3.2 million for the linked quarter. Partially offsetting this decline were higher gain on sale of loans and other loan fees included in other non-interest income.
Non-interest Expense
First quarter fiscal 2013 compared with first quarter fiscal 2012
Non-interest expense increased $1.8 million to $22.5 million, when compared to the first quarter of fiscal 2012. This was principally attributed to an increase in personnel associated with the continued growth in the number of our commercial banking teams.
First quarter fiscal 2013 compared with the linked quarter ended September 30, 2012
Non-interest expense decreased $6.2 million, or 21.7% over the linked quarter. The decrease was mainly related to the $4.9 million in merger related costs associated with the Gotham acquisition in the quarter ended September 30, 2012.
Income Taxes
The Company recorded income tax expense for the first quarter of fiscal 2013 at an effective tax rate of 30.4% compared to 26.2% for the same period in fiscal 2012. The increase in the tax rate is the result of increased operating revenue which causes the proportional impact of tax-exempt municipal securities interest and bank owned life insurance income to decline.
Credit Quality
Non-performing loans decreased to $33.6 million at December 31, 2012 compared to $39.8 million at September 30, 2012. We exited a large credit relationship in our Acquisition, Development and Construction ("ADC") portfolio that contributed to the decline. Net charge-offs for the quarter were $3.1 million compared to $2.8 million in the linked quarter. The allowance for loan losses at December 31, 2012 was $28.1 million, which represented 83.8% of non-performing loans and 1.28% of our total loan portfolio. This compares to the linked quarter, in which the allowance for loan losses was $28.3 million, which represented 71.0% of non-performing loans and 1.33% of our total loan portfolio. The allowance for loan losses to total loans, excluding loans acquired in the Gotham transaction that were recorded at fair value at the acquisition date and continue to carry no allowance was 1.41% and 1.47%, at December 31, 2012 and September 30, 2012, respectively. Please refer to the Company's reconciliation of this non-GAAP measure on page 9.
During the quarter, foreclosed properties increased $650 thousand to $7.1 million. Contributing to the increase were foreclosed ADC loans that totaled $1.3 million and one residential loan with a balance of $121 thousand. This was offset by sales and write-downs that totaled $731 thousand.
Key Balance Sheet Changes
- Assets at December 31, 2012, decreased $233.5 million or 5.80% compared to September 30, 2012, mainly related to decreases in our cash balances of $277.7 million. Our cash balance at September 30, 2012 was elevated due to municipal tax collections that were subsequently drawn down during the quarter.
- Loans increased $73.7 million in the first fiscal quarter of 2013 and reached $2.2 billion.
- Deposits decreased $206.8 million between September 30, 2012 and December 31, 2012. Municipal deposits decreased $363.5 million compared to September 30, 2012, as a result of seasonal tax deposits, offset by increases in our commercial deposits of $91.7 million.
- Securities at December 31, 2012 decreased $22.1 million as compared to September 30, 2012. Purchases for the first fiscal quarter of 2013 were $109.0 million, which were offset by sales of $41.3 million and $85.5 million in calls, maturities and principal pay downs.
Capital and Liquidity
Provident Bank remained well capitalized at December 31, 2012 with a Tier 1 Leverage ratio of 8.21% based on period end assets. Total capital increased $2.8 million from September 30, 2012, to $493.9 million at December 31, 2012. Tangible book value per share increased by $0.04 to $7.30 at December 31, 2012 from $7.26 at September 30, 2012, due to retained earnings. For the quarter ended December 31, 2012, the weighted average common shares outstanding increased to 43.6 million and 43.7 million, basic shares and diluted shares, respectively, compared to 41.1 million basic and diluted shares for the quarter ended September 30, 2012. This increase includes shares issued in our August 2012 $46 million capital raise.
About Provident New York Bancorp
Headquartered in Montebello, N.Y., Provident Bank, with $3.8 billion in assets, is a growing financial services firm that specializes in the delivery of service and solutions to business owners, their families, and consumers in communities within the greater New York City area through teams of dedicated and experienced relationship managers. Provident Bank offers a complete line of commercial, business, and consumer banking products and services. For more information, visit the Provident Bank web site at www.providentbanking.com.
FORWARD-LOOKING STATEMENTS AND ASSOCIATED RISK FACTORS
In addition to historical information, this earnings release may contain forward-looking statements for purposes of applicable securities laws. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are subject to numerous assumptions, risks and uncertainties. There are a number of important factors described in documents previously filed by the Company with the Securities and Exchange Commission, and other factors that could cause the Company's actual results to differ materially from those contemplated by such forward-looking statements. The Company undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.
Financial information contained in this release should be considered to be an estimate pending the filing with the Securities and Exchange Commission of the Company's Quarterly Report on Form 10-Q for the quarter ended December 31, 2012. While the Company is not aware of any need to revise the results disclosed in this release, accounting literature may require information received by management between the date of this release and the filing of the 10-Q to be reflected in the results of the fiscal period, even though the new information was received by management subsequent to the date of this release.
Provident New York Bancorp and Subsidiaries | |||||||||||
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION | |||||||||||
(unaudited, in thousands, except share and per share data) | |||||||||||
As of | |||||||||||
12/31/12 | 9/30/12 | ||||||||||
Assets: | |||||||||||
Cash and due from banks | $ | 160,241 | $ | 437,982 | |||||||
Total securities | 1,131,172 | 1,153,248 | |||||||||
HVIA assets held for sale | - | 4,550 | |||||||||
Loans held for sale | 5,423 | 7,505 | |||||||||
Loans: | |||||||||||
One- to four-family residential mortgage loans | 352,014 | 350,022 | |||||||||
Commercial real estate loans | 1,136,965 | 1,072,504 | |||||||||
Commercial and industrial loans | 376,052 | 343,307 | |||||||||
Acquisition, development and construction loans | 122,518 | 144,061 | |||||||||
Consumer loans | 205,580 | 209,578 | |||||||||
Total loans, gross | 2,193,129 | 2,119,472 | |||||||||
Allowance for loan losses | (28,114 | ) | (28,282 | ) | |||||||
Total loans, net | 2,165,015 | 2,091,190 | |||||||||
Federal Home Loan Bank stock, at cost | 19,246 | 19,249 | |||||||||
Premises and equipment, net | 38,086 | 38,483 | |||||||||
Goodwill | 163,247 | 163,247 | |||||||||
Other amortizable intangibles | 6,926 | 7,164 | |||||||||
Bank owned life insurance | 59,526 | 59,017 | |||||||||
Foreclosed properties | 7,053 | 6,403 | |||||||||
Other assets | 33,579 | 34,944 | |||||||||
Total assets | $ | 3,789,514 | $ | 4,022,982 | |||||||
Liabilities: | |||||||||||
Deposits | |||||||||||
Retail | $ | 167,369 | $ | 167,050 | |||||||
Commercial | 501,667 | 412,630 | |||||||||
Municipal | 15,779 | 367,624 | |||||||||
Personal NOW deposits | 250,345 | 213,755 | |||||||||
Business NOW deposits | 41,164 | 38,486 | |||||||||
Municipal NOW deposits | 168,771 | 195,882 | |||||||||
Total transaction accounts | 1,145,095 | 1,395,427 | |||||||||
Savings | 560,039 | 506,538 | |||||||||
Money market deposits | 834,544 | 821,704 | |||||||||
Certificates of deposit | 364,706 | 387,482 | |||||||||
Total deposits | 2,904,384 | 3,111,151 | |||||||||
Borrowings | 345,411 | 345,176 | |||||||||
Mortgage escrow funds and other liabilities | 45,836 | 75,533 | |||||||||
Total liabilities | 3,295,631 | 3,531,860 | |||||||||
Stockholders' equity | 493,883 | 491,122 | |||||||||
Total liabilities and stockholders' equity | $ | 3,789,514 | $ | 4,022,982 | |||||||
Shares of common stock outstanding at period end | 44,348,787 | 44,173,470 | |||||||||
Book value per share | $ | 11.14 | $ | 11.12 | |||||||
Provident New York Bancorp and Subsidiaries | |||||||||||||
CONSOLIDATED CONDENSED STATEMENTS OF INCOME | |||||||||||||
(unaudited, in thousands, except share and per share data) | |||||||||||||
For the Quarters Ended | |||||||||||||
12/31/12 | 12/31/11 | 9/30/12 | |||||||||||
Interest and dividend income: | |||||||||||||
Loans and loan fees | $ | 27,071 | $ | 22,149 | $ | 24,396 | |||||||
Securities taxable | 4,284 | 3,990 | 3,909 | ||||||||||
Securities non-taxable | 1,457 | 1,774 | 1,543 | ||||||||||
Other earning assets | 333 | 255 | 265 | ||||||||||
Total interest income | 33,145 | 28,168 | 30,113 | ||||||||||
Interest expense: | |||||||||||||
Deposits | 2,097 | 1,313 | 1,789 | ||||||||||
Borrowings | 3,125 | 3,617 | 3,085 | ||||||||||
Total interest expense | 5,222 | 4,930 | 4,874 | ||||||||||
Net interest income | 27,923 | 23,238 | 25,239 | ||||||||||
Provision for loan losses | 2,950 | 1,950 | 3,500 | ||||||||||
Net interest income after provision for loan losses | 24,973 | 21,288 | 21,739 | ||||||||||
Non-interest income: | |||||||||||||
Deposit fees and service charges | $ | 2,778 | $ | 2,790 | $ | 3,065 | |||||||
Net gain on sales of securities | 1,416 | 1,989 | 3,152 | ||||||||||
Other than temporary loss on securities | (25 | ) | (38 | ) | (3 | ) | |||||||
Title insurance fees | 259 | 260 | 332 | ||||||||||
Bank owned life insurance | 509 | 518 | 512 | ||||||||||
Gain on sale of loans | 746 | 440 | 429 | ||||||||||
Gain on sale of premises and equipment | 5 | - | 70 | ||||||||||
Loss on sale of HVIA | - | - | (135 | ) | |||||||||
Investment management fees | 705 | 765 | 776 | ||||||||||
Fair value loss on interest rate caps | (1 | ) | (3 | ) | (6 | ) | |||||||
Other | 1,267 | 455 | 834 | ||||||||||
Total non-interest income | 7,659 | 7,176 | 9,026 | ||||||||||
Non-interest expense: | |||||||||||||
Compensation and benefits | 12,299 | 10,549 | 12,873 | ||||||||||
Stock-based compensation plans | 500 | 275 | 302 | ||||||||||
Merger related expenses | - | 247 | 4,928 | ||||||||||
Restructuring charge (severance/branch relocation) | - | 376 | - | ||||||||||
Occupancy and office operations | 3,810 | 3,701 | 3,959 | ||||||||||
Advertising and promotion | 244 | 613 | 369 | ||||||||||
Professional fees | 1,215 | 927 | 1,136 | ||||||||||
Data and check processing | 649 | 672 | 715 | ||||||||||
Amortization of intangible assets | 261 | 323 | 334 | ||||||||||
FDIC insurance and regulatory assessments | 718 | 728 | 843 | ||||||||||
ATM/debit card expense | 442 | 411 | 438 | ||||||||||
Foreclosed property expense | 285 | 205 | 573 | ||||||||||
Other | 2,123 | 1,694 | 2,314 | ||||||||||
Total non-interest expense | 22,546 | 20,721 | 28,784 | ||||||||||
Income before income tax expense | 10,086 | 7,743 | 1,981 | ||||||||||
Income tax expense (benefit) | 3,066 | 2,026 | (280 | ) | |||||||||
Net income | $ | 7,020 | $ | 5,717 | $ | 2,261 | |||||||
Basic earnings per common share | $ | 0.16 | $ | 0.15 | $ | 0.06 | |||||||
Diluted earnings per common share | 0.16 | 0.15 | 0.06 | ||||||||||
Dividends declared | 0.06 | 0.06 | 0.06 | ||||||||||
Weighted average common shares: | |||||||||||||
Basic | 43,637,315 | 37,252,464 | 41,054,458 | ||||||||||
Diluted | 43,721,091 | 37,252,464 | 41,099,237 | ||||||||||
Selected Financial Condition Data: | As of and for the Quarter Ended | |||||||||||||||
(in thousands except share and per share data) | 12/31/12 | 9/30/12 | 6/30/12 | 3/31/12 | 12/31/11 | |||||||||||
End of Period | ||||||||||||||||
Total assets | $ | 3,789,514 | $ | 4,022,982 | $ | 3,150,040 | $ | 3,210,871 | $ | 3,084,166 | ||||||
Loans, gross 1 | 2,193,129 | 2,119,472 | 1,851,027 | 1,799,112 | 1,775,893 | |||||||||||
Securities available for sale | 991,298 | 1,010,872 | 714,200 | 852,717 | 785,462 | |||||||||||
Securities held to maturity | 139,874 | 142,376 | 171,233 | 174,824 | 182,076 | |||||||||||
Bank owned life insurance | 59,526 | 59,017 | 58,506 | 57,987 | 57,485 | |||||||||||
Goodwill | 163,247 | 163,247 | 160,861 | 160,861 | 160,861 | |||||||||||
Other amortizable intangibles | 6,926 | 7,164 | 3,718 | 4,001 | 4,306 | |||||||||||
Other non - earning assets | 78,718 | 79,830 | 83,106 | 80,020 | 78,710 | |||||||||||
Deposits | 2,904,384 | 3,111,151 | 2,332,091 | 2,368,988 | 2,135,555 | |||||||||||
Borrowings | 345,411 | 345,176 | 314,154 | 313,849 | 468,543 | |||||||||||
Equity | 493,883 | 491,122 | 444,670 | 439,699 | 437,682 | |||||||||||
Other comprehensive income related to investment securities reflected in stockholders' equity | 12,548 | 15,066 | 14,141 | 13,780 | 15,823 | |||||||||||
Average Balances | ||||||||||||||||
Total assets | $ | 3,792,201 | $ | 3,451,055 | $ | 3,133,958 | $ | 3,131,854 | $ | 3,062,520 | ||||||
Loans, gross: | ||||||||||||||||
One-to-four-family residential mortgage loans | 344,064 | 352,724 | 360,487 | 374,498 | 385,269 | |||||||||||
Commercial real estate loans | 1,107,779 | 989,349 | 868,963 | 838,935 | 752,325 | |||||||||||
Acquisition, development and construction loans | 138,881 | 156,726 | 165,442 | 163,116 | 172,155 | |||||||||||
Commercial and industrial loans | 354,137 | 263,922 | 205,051 | 197,507 | 203,929 | |||||||||||
Consumer loans | 208,064 | 210,650 | 215,555 | 220,537 | 224,422 | |||||||||||
Loans total 1 | 2,152,925 | 1,973,371 | 1,815,498 | 1,794,593 | 1,738,100 | |||||||||||
Securities (taxable) | 954,372 | 841,373 | 778,782 | 799,753 | 696,293 | |||||||||||
Securities (non-taxable) | 174,201 | 181,540 | 182,003 | 185,062 | 205,366 | |||||||||||
Total earning assets | 3,380,875 | 3,070,315 | 2,797,093 | 2,792,042 | 2,715,027 | |||||||||||
Non earning assets | 411,326 | 380,740 | 336,865 | 339,812 | 347,493 | |||||||||||
Non-interest bearing checking | 649,077 | 592,962 | 483,589 | 503,539 | 500,621 | |||||||||||
Interest bearing NOW accounts | 469,180 | 398,493 | 412,072 | 389,846 | 398,885 | |||||||||||
Total transaction accounts | 1,118,257 | 991,455 | 895,661 | 893,385 | 899,506 | |||||||||||
Savings (including mortgage escrow funds) | 531,107 | 539,904 | 493,234 | 463,971 | 445,236 | |||||||||||
Money market deposits | 908,262 | 756,655 | 697,342 | 654,013 | 577,387 | |||||||||||
Certificates of deposit | 380,244 | 303,788 | 265,375 | 284,737 | 302,713 | |||||||||||
Total deposits and mortgage escrow | 2,937,870 | 2,591,802 | 2,351,612 | 2,296,106 | 2,224,842 | |||||||||||
Total interest bearing deposits (including escrow) | 2,288,793 | 1,998,840 | 1,868,023 | 1,792,567 | 1,724,221 | |||||||||||
Borrowings | 345,951 | 336,217 | 320,237 | 375,766 | 392,785 | |||||||||||
Equity | 492,506 | 475,652 | 441,956 | 439,384 | 431,129 | |||||||||||
Selected Operating Data: | ||||||||||||||||
Condensed Tax Equivalent Income Statement | ||||||||||||||||
Interest and dividend income | $ | 33,145 | $ | 30,113 | $ | 28,345 | $ | 28,411 | $ | 28,168 | ||||||
Tax equivalent adjustment* | 785 | 830 | 852 | 861 | 955 | |||||||||||
Interest expense | 5,222 | 4,874 | 4,263 | 4,506 | 4,930 | |||||||||||
Net interest income (tax equivalent) | 28,708 | 26,069 | 24,934 | 24,766 | 24,193 | |||||||||||
Provision for loan losses | 2,950 | 3,500 | 2,312 | 2,850 | 1,950 | |||||||||||
Net interest income after provision for loan losses | 25,758 | 22,569 | 22,622 | 21,916 | 22,243 | |||||||||||
Non-interest income | 7,659 | 9,026 | 7,979 | 7,971 | 7,176 | |||||||||||
Non-interest expense | 22,546 | 28,784 | 21,162 | 21,290 | 20,721 | |||||||||||
Income before income tax expense | 10,871 | 2,811 | 9,439 | 8,597 | 8,698 | |||||||||||
Income tax expense (tax equivalent)* | 3,851 | 550 | 3,230 | 2,896 | 2,981 | |||||||||||
Net income | $ | 7,020 | $ | 2,261 | $ | 6,209 | $ | 5,701 | $ | 5,717 | ||||||
1 Does not reflect allowance for loan losses of $28,114, $28,282, $27,587, $27,787, and $28,245. | ||||||||||||||||
* Tax exempt income assumed at a statutory 35% federal rate. | ||||||||||||||||
For the Quarter Ended | ||||||||||||||||
12/31/12 | 9/30/12 | 6/30/12 | 3/31/12 | 12/31/11 | ||||||||||||
Performance Ratios (annualized) | ||||||||||||||||
Return on average assets | 0.73 | % | 0.26 | % | 0.80 | % | 0.73 | % | 0.74 | % | ||||||
Return on average stockholders' equity | 5.65 | % | 1.89 | % | 5.65 | % | 5.22 | % | 5.26 | % | ||||||
Return on average tangible equity 1 | 8.71 | % | 2.92 | % | 9.01 | % | 8.36 | % | 8.53 | % | ||||||
Non-interest income to average assets | 0.80 | % | 1.04 | % | 1.02 | % | 1.02 | % | 0.93 | % | ||||||
Non-interest expense to average assets | 2.36 | % | 3.32 | % | 2.72 | % | 2.73 | % | 2.68 | % | ||||||
GAAP operating efficiency | 63.4 | % | 84.0 | % | 66.0 | % | 66.8 | % | 68.1 | % | ||||||
Core operating efficiency 1 | 62.9 | % | 72.0 | % | 65.5 | % | 67.9 | % | 67.8 | % | ||||||
Analysis of Net Interest Income | ||||||||||||||||
Yield on loans | 5.04 | % | 4.97 | % | 5.01 | % | 5.03 | % | 5.13 | % | ||||||
Yield on investment securities - tax equivalent2 | 2.29 | % | 2.44 | % | 2.79 | % | 2.81 | % | 2.96 | % | ||||||
Yield on earning assets - tax equivalent2 | 3.98 | % | 4.01 | % | 4.20 | % | 4.22 | % | 4.26 | % | ||||||
Cost of deposits | 0.28 | % | 0.27 | % | 0.22 | % | 0.21 | % | 0.23 | % | ||||||
Cost of borrowings | 3.58 | % | 3.65 | % | 3.77 | % | 3.52 | % | 3.65 | % | ||||||
Cost of interest bearing liabilities | 0.79 | % | 0.83 | % | 0.78 | % | 0.84 | % | 0.92 | % | ||||||
Net interest rate spread - tax equivalent basis2 | 3.19 | % | 3.18 | % | 3.42 | % | 3.38 | % | 3.34 | % | ||||||
Net interest margin- tax equivalent basis2 | 3.37 | % | 3.38 | % | 3.59 | % | 3.57 | % | 3.54 | % | ||||||
Capital Information Data | ||||||||||||||||
Tier 1 leverage ratio - Bank only | 8.21 | % | 7.49 | % | 8.67 | % | 8.32 | % | 8.51 | % | ||||||
Tier 1 risk-based capital - Bank only | $ | 297,090 | 3 | $ | 289,441 | $ | 257,621 | $ | 252,586 | $ | 247,433 | |||||
Total risk-based capital - Bank only | 325,411 | 3 | 317,929 | 283,033 | 277,614 | 273,911 | ||||||||||
Tangible capital consolidated 1 | 323,710 | 320,711 | 280,091 | 274,837 | 272,515 | |||||||||||
Tangible capital as a % of tangible assets consolidated 1 | 8.94 | % | 8.32 | % | 9.38 | % | 9.02 | % | 9.34 | % | ||||||
Shares of common stock outstanding | 44,348,787 | 44,173,470 | 37,899,007 | 37,899,007 | 37,883,008 | |||||||||||
Shares repurchased during qtr (open market) | - | - | - | - | - | |||||||||||
Basic weighted average common shares outstanding | 43,637,315 | 41,054,458 | 37,302,693 | 37,280,651 | 37,252,464 | |||||||||||
Diluted weighted average common shares outstanding | 43,721,091 | 41,099,237 | 37,330,467 | 37,316,778 | 37,252,464 | |||||||||||
Basic earnings per common share | $ | 0.16 | $ | 0.06 | $ | 0.17 | $ | 0.15 | $ | 0.15 | ||||||
Diluted earnings per common share | 0.16 | 0.06 | 0.17 | 0.15 | 0.15 | |||||||||||
Dividends declared per common share | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | |||||||||||
Book value per share | 11.14 | 11.12 | 11.73 | 11.60 | 11.55 | |||||||||||
Tangible book value per common share 1 | 7.30 | 7.26 | 7.39 | 7.25 | 7.19 | |||||||||||
Asset Quality Measurements | ||||||||||||||||
Non-performing loans (NPLs): non-accrual | $ | 27,730 | $ | 35,444 | $ | 41,048 | $ | 47,269 | $ | 40,777 | ||||||
Non-performing loans (NPLs): still accruing | 5,823 | 4,370 | 3,450 | 4,693 | 5,136 | |||||||||||
Other real estate owned | 7,053 | 6,403 | 7,292 | 5,828 | 5,625 | |||||||||||
Non-performing assets (NPAs) | 40,606 | 46,217 | 51,790 | 57,790 | 51,538 | |||||||||||
Net charge-offs | 3,118 | 2,805 | 2,512 | 3,308 | 1,622 | |||||||||||
Net charge-offs as % of average loans (annualized) | 0.58 | % | 0.57 | % | 0.55 | % | 0.74 | % | 0.37 | % | ||||||
NPLs as % of total loans | 1.53 | % | 1.88 | % | 2.40 | % | 2.89 | % | 2.59 | % | ||||||
NPAs as % of total assets | 1.07 | % | 1.15 | % | 1.64 | % | 1.80 | % | 1.67 | % | ||||||
Allowance for loan losses as % of NPLs | 83.8 | % | 71.0 | % | 62.0 | % | 53.5 | % | 61.5 | % | ||||||
Allowance for loan losses as % of total loans | 1.28 | % | 1.33 | % | 1.49 | % | 1.54 | % | 1.59 | % | ||||||
Allowance for loan losses as % of total, excluding Gotham1 | 1.41 | % | 1.47 | % | 1.49 | % | 1.54 | % | 1.59 | % | ||||||
Special mention loans | $ | 29,755 | $ | 42,422 | $ | 37,555 | $ | 37,379 | $ | 18,424 | ||||||
Substandard / doubtful loans | 83,109 | 88,674 | 88,395 | 89,135 | 99,383 | |||||||||||
1 See reconciliation of GAAP measure to non-GAAP measure on following page. | ||||||||||||||||
2 Tax equivalent adjustment represents interest income earned on municipal securities divided by the applicable Federal tax rate of 35% for all periods presented. | ||||||||||||||||
3 Represents preliminary results for the quarter ended December 31, 2012. | ||||||||||||||||
Non GAAP Financial Measures | As of and for the Quarter Ended | ||||||||||||||
(in thousands except share and per share data) | 12/31/12 | 9/30/12 | 6/30/12 | 3/31/12 | 12/31/11 | ||||||||||
The Company provides supplemental reporting of non-GAAP measures as management believes this information is useful to investors. | |||||||||||||||
The following table shows the reconciliation of stockholders' equity to tangible equity and the tangible equity ratio: | |||||||||||||||
Total assets | $ | 3,789,514 | $ | 4,022,982 | $ | 3,150,040 | $ | 3,210,871 | $ | 3,084,166 | |||||
Goodwill and other amortizable intangibles | (170,173 | ) | (170,411 | ) | (164,579 | ) | (164,862 | ) | (165,167 | ) | |||||
Tangible assets | 3,619,341 | 3,852,571 | 2,985,461 | 3,046,009 | 2,918,999 | ||||||||||
Stockholders' equity | 493,883 | 491,122 | 444,670 | 439,699 | 437,682 | ||||||||||
Goodwill and other amortizable intangibles | (170,173 | ) | (170,411 | ) | (164,579 | ) | (164,862 | ) | (165,167 | ) | |||||
Tangible stockholders' equity | 323,710 | 320,711 | 280,091 | 274,837 | 272,515 | ||||||||||
Shares of common stock outstanding at period end | 44,348,787 | 44,173,470 | 37,899,007 | 37,899,007 | 37,883,008 | ||||||||||
Tangible capital as a % of tangible assets | 8.94 | % | 8.32 | % | 9.38 | % | 9.02 | % | 9.34 | % | |||||
Tangible book value per share | $ | 7.30 | $ | 7.26 | $ | 7.39 | $ | 7.25 | $ | 7.19 | |||||
The Company believes that tangible equity is useful as a tool to help assess a company's capital position. | |||||||||||||||
The following table shows the reconciliation of return on average tangible equity: | |||||||||||||||
Average stockholders' equity | $ | 492,506 | $ | 475,652 | $ | 441,956 | $ | 439,384 | $ | 431,129 | |||||
Average goodwill and other amortizable intangibles | (172,723 | ) | (167,623 | ) | (164,751 | ) | (165,045 | ) | (165,360 | ) | |||||
Average tangible stockholders' equity | 319,783 | 308,029 | 277,205 | 274,339 | 265,769 | ||||||||||
Net income | 7,020 | 2,261 | 6,209 | 5,701 | 5,717 | ||||||||||
Net income, if annualized | 27,851 | 8,995 | 24,972 | 22,929 | 22,682 | ||||||||||
Return on average tangible equity | 8.71 | % | 2.92 | % | 9.01 | % | 8.36 | % | 8.53 | % | |||||
The Company believes that the return on average tangible stockholders' equity is useful as a tool to help measure and assess a company's use of equity. | |||||||||||||||
The following table shows the reconciliation of the operating efficiency ratio: | |||||||||||||||
Net interest income | $ | 27,923 | $ | 25,239 | $ | 24,082 | $ | 23,905 | $ | 23,238 | |||||
Non-interest income | 7,659 | 9,026 | 7,979 | 7,971 | 7,176 | ||||||||||
Total net revenues | 35,582 | 34,265 | 32,061 | 31,876 | 30,414 | ||||||||||
Tax equivalent adjustment on securities interest income | 785 | 830 | 852 | 861 | 955 | ||||||||||
Net gain on sales of securities | (1,416 | ) | (3,152 | ) | (2,412 | ) | (2,899 | ) | (1,989 | ) | |||||
Other than temporary loss on securities | 25 | 3 | 6 | - | 38 | ||||||||||
Other, (other gains and fair value loss on interest rate caps) | (4 | ) | (64 | ) | 14 | 40 | 3 | ||||||||
Core total revenues | 34,972 | 31,882 | 30,521 | 29,878 | 29,421 | ||||||||||
Non-interest expense | 22,546 | 28,784 | 21,162 | 21,290 | 20,721 | ||||||||||
Merger related expense | - | (4,928 | ) | (451 | ) | (299 | ) | (247 | ) | ||||||
Foreclosed property expense | (285 | ) | (573 | ) | (428 | ) | (412 | ) | (205 | ) | |||||
Amortization of intangible assets | (261 | ) | (334 | ) | (283 | ) | (305 | ) | (323 | ) | |||||
Core non-interest expense | 22,000 | 22,949 | 20,000 | 20,274 | 19,946 | ||||||||||
Core efficiency ratio | 62.9 | % | 72.0 | % | 65.5 | % | 67.9 | % | 67.8 | % | |||||
The core efficiency ratio reflects total revenues inclusive of the tax equivalent adjustment on municipal securities and excludes securities gains, other than temporary impairments and the other adjustments shown above. Core non-interest expense is adjusted to exclude the effect of foreclosed property expense and amortization of intangible assets. The Company believes this non-GAAP information provides useful information to users to assess the Company's core operations. | |||||||||||||||
The following table shows the reconciliation of the allowance for loan losses to total loans and to total loans excluding Gotham loans: | |||||||||||||||
Total loans | $ | 2,193,129 | $ | 2,119,472 | $ | 1,851,027 | $ | 1,799,112 | $ | 1,775,893 | |||||
Gotham loans | 194,518 | 201,794 | - | - | - | ||||||||||
Total loans, excluding Gotham loans | 1,998,611 | 1,917,678 | 1,851,027 | 1,799,112 | 1,775,893 | ||||||||||
Allowance for loan losses | 28,114 | 28,282 | 27,587 | 27,787 | 28,245 | ||||||||||
Allowance for loan losses to total loans | 1.28 | % | 1.33 | % | 1.49 | % | 1.54 | % | 1.59 | % | |||||
Allowance for loan losses to total loans, excluding Gotham loans | 1.41 | % | 1.47 | % | NA | NA | NA | ||||||||
As required by GAAP, the Company recorded at fair value the loans acquired in the Gotham transaction. These loans contain no allowance for loan losses in losses for the periods reflected above. | |||||||||||||||
Contact Information:
PROVIDENT BANK CONTACT:
Luis Massiani
EVP & Chief Financial Officer
845.369.8040
Provident New York Bancorp
400 Rella Boulevard
Montebello, NY 10901-4243
T 845.369.8040
F 845.369.8255
www.providentbanking.com