Provident New York Bancorp Announces First Quarter 2012 Earnings of $0.15 per Diluted Share
(firmenpresse) - MONTEBELLO, NY -- (Marketwire) -- 01/23/12 -- (NYSE: PBNY) 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.
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."
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).
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.
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.
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.
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.
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.
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.
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.
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.
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 .
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.
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Datum: 23.01.2012 - 22:27 Uhr
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