Provident New York Bancorp Announces Second Quarter 2012 Earnings of $0.15 per Diluted Share
(firmenpresse) - MONTEBELLO, NY -- (Marketwire) -- 04/23/12 -- (NYSE: PBNY), Net income for the quarter was $5.7 million, or $0.15 per diluted share, compared to net income of $3.6 million, or $0.10 per diluted share for same quarter last year and $5.7 million, or $0.15 per diluted share for the linked quarter ended December 31, 2011.
Jack Kopnisky, President and CEO, commented, "In the second fiscal quarter we continued to see the impact of our growth strategy. We are seeing success in several areas as a result of our focus on strong, consistent execution of this strategy. We have now completed the hiring of five experienced teams in the New York City area, which are beginning to build a meaningful pipeline of high quality opportunities. We have also completed the restructuring of teams in our legacy markets, bringing our total number of commercial banking teams to thirteen. Our growth in deposits is strong, with an increase of $233.4 million or 10.9% between December 31, 2011 and March 31, 2012. Commercial loan growth also continues to be very strong up 16.3 percent year over year and 4.1 percent over the linked quarter.
"In addition, as part of our strategy, we have also made significant progress in our planned acquisition of Gotham Bank. We have filed all regulatory applications for approval of the Gotham acquisition, and have detailed project plans in place for the Gotham integration, which is expected during our fourth quarter of 2012.
"However, the quarter was not without challenges as we saw an increase in non-performing loans of $6.0 million due to continued movement within certain sectors such as our legacy ADC portfolio, which in part led to a provision of $2.9 million during the quarter. We continue to focus on the ADC portfolio and the systematic work-out of non-performing credits as appropriate."
Commercial loan originations were $129.1 million compared to $87.6 million for the same quarter last year and $186.7 million in the linked quarter.
Net interest margin improved by 3 basis points over the linked quarter to 3.57 percent.
Securities gains during the quarter were $1.7 million, after tax.
Provisions for loan losses were $2.9 million for the quarter compared to $2.0 million for the linked quarter, and $2.1 million for the same quarter last year.
Second quarter fiscal 2012 compared with second quarter fiscal 2011
Net interest income was $23.9 million for the second quarter of fiscal 2012, up $1.4 million from the same quarter of fiscal 2011. Reflecting the current interest rate environment, the tax-equivalent yield on investments decreased 10 basis points and loan yields were down 37 basis points compared to the second quarter fiscal 2011. As a result, the yield on interest-earning assets declined 29 basis points. The cost of deposits decreased 10 basis points to 0.21 percent, and the cost of borrowings decreased by 6 basis points to 3.52 percent. The resulting net interest margin on a tax-equivalent basis was 3.57 percent for the second quarter of fiscal 2012, compared to 3.68 percent for the same period a year ago.
Second quarter fiscal 2012 compared with linked quarter ended December 31, 2011
Net interest income for the quarter ended March 31, 2012 increased compared to the linked quarter ended December 31, 2011 by $667,000. The tax-equivalent net interest margin increased to 3.57 percent from 3.54 percent in the linked quarter. The high cash balance at the Federal Reserve depressed net interest margin by 10 basis points in the linked quarter compared to 2 basis points in the current quarter. The overall yield on loans decreased 10 basis points to 5.03 percent. The current quarter was negatively affected by declining yields on commercial real estate originations. The yield on the investment portfolio decreased 15 basis points. The overall yield on earning assets decreased 4 basis points to 4.22 percent. The cost of deposits declined 2 basis points, reflecting the already low level of deposit pricing. The average cost of borrowings decreased 13 basis points, as the Company's FDIC guaranteed borrowing matured in February 2012.
Second quarter fiscal 2012 compared with second quarter fiscal 2011
Noninterest income totaled $8.0 million for the second quarter, an increase of $2.2 million over the second quarter of fiscal 2011. The primary driver of the increase was higher gains on sales of securities of $2.2 million.
Second quarter fiscal 2012 compared with linked quarter ended December 31, 2011
Noninterest income increased $795,000 on a linked quarter basis, mainly due to higher gains on the sale of securities of $910,000.
Second quarter fiscal 2012 compared with second quarter fiscal 2011
Noninterest expense decreased $501,000, when compared to the second quarter fiscal 2011. Lower occupancy expense was offset by increases in compensation and benefits during the quarter from new hires associated with the Company's expansion into the New York City market of $554,000. The second quarter of 2012 also included $299,000 of merger related expenses.
Second quarter fiscal 2012 compared with the linked quarter ended December 31, 2011
On a linked quarter basis, noninterest expense increased $569,000. Increases were seen primarily in compensation and benefits, due to the New York City expansion, offset in part by reductions in occupancy expenses.
The Company recorded income tax expense for the second quarter of 2012 at an effective rate of 26 percent compared to 19.1 percent for the same period in fiscal 2011 due to higher BOLI income and larger tax-exempt municipal security interest relative to pre-tax income in fiscal 2011.
Nonperforming loans increased to $52.0 million at March 31, 2012 from $45.9 million at December 31, 2011. While the net increase was spread amongst the commercial real estate, ADC and residential secured portfolios, negative migration in the ADC portfolio was the most significant. Net charge-offs for the quarter ended March 31, 2012 were $3.3 million compared to $1.6 million for the linked quarter and $3.0 million for the second quarter of fiscal 2011. Charge-offs resulted primarily from write-downs of residential and commercial real estate in the process of foreclosure. Further, the linked quarter net charge offs benefited from $1.0 million in recoveries compared to $165,000 in this quarter. The provision was $2.9 million for the current quarter, resulting in an allowance for loan losses of $27.8 million, or 53 percent of non-performing loans at March 31, 2012. This compares to 62 percent at December 31, 2011 and 81 percent at March 31, 2011. The provision was less than charge-offs as a portion of the charge-offs were previously covered by specific reserves. We continue to see limited formation of new problem loans. Substandard loans decreased $10 million due to upgrades. Special mention loans grew due to a downgrade of one loan, which is strongly supported by the paying capacity of the borrower, as well as the previously mentioned upgrades from substandard status.
The balance sheet increased $126.7 million or 4.1 percent compared to December 31, 2011 due primarily to increases in investment securities of $60.0 million and gross loans of $23.2 million funded by deposit growth of $233.4 million.
Deposits increased $48.6 million compared to December 31, 2011, excluding municipal and wholesale deposits, with the majority coming from retail transaction and savings accounts. Wholesale deposits were $34.1 million and $54.9 million at March 31, 2012 and December 31, 2011, respectively.
Total loan originations during second quarter fiscal 2012 were $166.6 million compared to $117.4 million for the same quarter last year and $231.6 million in the linked quarter. Commercial real estate balances including multi-family loans increased by $52.4 million or 6.5% over December 31, 2011 levels, more than offsetting declines in other categories.
Securities increased $60.0 million over December 31, 2011 levels, primarily due to purchases of $160.8 million in securities during the second quarter partially offset by sales of $67.1 million with associated gains of $2.9 million.
Provident Bank remained well-capitalized at March 31, 2012 with the Bank's Tier 1 leverage ratio at 8.55 percent. The Company's tangible capital as a percent of tangible assets decreased 32 basis points from December 31, 2011 levels to 9.02 percent at March 31, 2012, while tangible book value per share increased to $7.25 from $7.19 at December 31, 2011 (a reconciliation of these Non-GAAP equity ratios is included with the ratios listed on the last page). Total capital increased $2.0 million from December 31, 2011, to $439.7 million at March 31, 2012, due primarily to a net increase of $3.4 million in the Company's retained earnings offset by a $1.7 million decline in accumulated other comprehensive income.
Headquartered in Montebello, N.Y., Provident Bank, with $3.2 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 March 31, 2012. 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: 23.04.2012 - 20:35 Uhr
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News-ID 138169
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