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

August 08, 2012 | About:
10qk

10qk

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Provident New York Bancorp (PBNY) filed Quarterly Report for the period ended 2012-06-30.

Provident New York Bancorp has a market cap of $308.1 million; its shares were traded at around $8.21 with a P/E ratio of 16.3 and P/S ratio of 2.2. The dividend yield of Provident New York Bancorp stocks is 3%. Provident New York Bancorp had an annual average earning growth of 9.3% over the past 10 years.

Highlight of Business Operations:

Net income for the three months ended June 30, 2012 was $6.2 million or $0.17 per diluted share, an increase of $4.3 million compared to $1.9 million or $0.05 per diluted share, for the same period in fiscal 2011. The primary factors were a higher net interest income of $1.3 million or 5.6 percent, an increase in non interest income of $2.8 million or 53.0 percent resulting mainly from gains on sales of securities and loans, offset by a lower provision for loan loss of $1.3 million or 35.8 percent and decreased non interest expense of $1.5 million or 6.7 percent due mostly from charges incurred during the third quarter of 2011 related to the change in the CEO when compared to the three months ended June 30, 2011.

Provision for Loan Losses. The Company records provisions for loan losses, which are charged to earnings, in order to maintain the allowance for loan losses at a level necessary to absorb incurred loan losses inherent in the existing portfolio. The Company recorded $2.3 million in loan loss provisions for the quarter ended June 30, 2012 compared to $3.6 million at June 30, 2011 a decrease of $1.3 million. Refer to the credit quality section for a discussion on net charge-offs and nonperforming loans. Net charge-offs for the quarter ended June 30, 2012 were $2.5 million, which included $121,000 of specific reserves recorded in prior periods, compared to net charge-offs of $4.3 million for the same period in 2011.

Non-interest income for the three months ended June 30, 2012 increased by $2.8 million or 52.9 percent to $8.0 million over the third quarter of fiscal 2011. The primary driver of the increase was higher gains on sales of securities of $1.9 million and increased gains on sales of loans of $569,000.

Provision for Loan Losses. The Company records provisions for loan losses, which are charged to earnings, in order to maintain the allowance for loan losses at a level necessary to absorb probable incurred loan losses inherent in the existing portfolio. The Company recorded $7.1 million in loan loss provisions for the nine months ended June 30, 2012, compared to $7.8 million or 8.8 percent less for the same period in fiscal 2011. Refer to the credit quality section for a discussion on net charge-offs and nonperforming loans. Net charge-offs for the nine months ended June 30, 2012 were $7.4 million, which included $3.5 million of specific reserves recorded in prior periods.

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 nine months ended June 30, 2012 and 2011, our loan originations totaled $604.4 million and $447.8 million, respectively. Purchases of securities available for sale totaled $338.5 million and $505.8 million for the nine months ended June 30, 2012 and 2011, respectively. Purchases of securities held to maturity totaled $83.6 million and $6.7 million for the nine months ended June 30, 2012 and 2011, respectively. These activities were funded primarily by sales of securities, deposit growth, borrowings and by principal repayments on loans and securities. Loan origination commitments totaled $23.0 million at June 30, 2012, and consisted of $12.9 million at adjustable or variable rates and $10.1 million at fixed rates. Unused lines of credit granted to customers were $244.6 million at June 30, 2012. We anticipate that we will have sufficient funds available to meet current loan commitments and lines of credit.

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