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Provident New York Bancorp Reports Operating Results (10-Q)

February 08, 2012 | About:
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10qk

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Provident New York Bancorp (PBNY) filed Quarterly Report for the period ended 2011-12-31.

Provident New York Bancorp has a market cap of $335.3 million; its shares were traded at around $8.75 with a P/E ratio of 25.3 and P/S ratio of 2.4. The dividend yield of Provident New York Bancorp stocks is 2.7%. Provident New York Bancorp had an annual average earning growth of 8.4% over the past 10 years.

Highlight of Business Operations:

Total securities increased by $117.7 million, to $967.5 million at December 31, 2011 from $849.9 million at September 30, 2011. Securities purchases were $228.0 million, sales of securities were $83.6 million, and maturities, calls, and repayments were $31.8 million. Carrying values of securities increased by $3.7 million mainly due to unrealized gains. Security gains and other than temporarily impaired losses were $2.0 million and net amortization of securities were $677,000 for the three months ended December 31, 2011.

Net income for the three months ended December 31, 2011 was $5.7 million or $0.15 per diluted share, a decrease of $1.0 million compared to $6.7 million or $0.18 per diluted share, for the same period in fiscal 2011. 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, net income was $ 0.13 per diluted share for the three month period ending December 31, 2011 compared to $0.11 per diluted share for the three month period ending December 31, 2010. The provision for loan losses for the three months ended December 31, 2011 was $2.0 million, $150,000 lower, compared to $2.1 million for the same period in the prior year. Net interest margin on a tax equivalent basis for the three months ended December 31, 2011, decreased by 12 basis points compared to the same period last year from 3.66 percent to 3.54 percent. Non-interest income totaled $7.2 million for the three months ended December 31, 2011 a decrease of $2.7 million compared to December 31, 2010. The decrease was mainly attributable to fact that there were lower gains on sales of securities of $2.0 million, a decline 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. Additionally, declines in other- loan fees, gains on sale of loans and lower title insurance fees also contributed to the decrease. Non-interest expense decreased $548,000, or 2.6 percent, to $20.7 million for the three months ended December 31, 2011, compared to $21.3 million for the same period in the prior year primarily due to lower employee benefits of $319,000 which 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 costs of $247,000 and an increase in real estate owned expense of $289,000.

Non-interest income for the three months ended December 31, 2011 decreased by $2.7 million to $7.2 million. The primary driver 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. Declines in other loan fees, gains on sales of loans in fiscal 2011 and lower title insurance fees also contributed to the decrease.

Our cash flows are derived from operating activities, investing activities and financing activities as reported in the Consolidated Statements of Cash Flows in our consolidated financial statements. Our primary investing activities are the origination of commercial real estate and residential one- to four-family loans, and the purchase of investment securities and mortgage-backed securities. During the three months ended December 31, 2011 and 2010, our loan originations totaled $231.6 million and $182.0 million, respectively. Purchases of securities available for sale totaled $151.2 million and $301.1 million for the three months ended December 31, 2011 and 2010, respectively. Purchases of securities held to maturity totaled $76.8 million and $4.0 million for the three months ended December 31, 2011 and 2010, respectively. These activities were funded primarily by sales of securities, by borrowings and by principal repayments on loans and securities. Loan origination commitments totaled $63.8 million at December 31, 2011, and consisted of $54.0 million at adjustable or variable rates and $9.8 million at fixed rates. Unused lines of credit granted to customers were $288.6 million at December 31, 2011. We anticipate that we will have sufficient funds available to meet current loan commitments and lines of credit.

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