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

February 08, 2013 | About:
10qk

10qk

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Provident New York Bancorp (PBNY) filed Quarterly Report for the period ended 2012-12-31.

Provident New York Bancorp has a market cap of $392.906 million; its shares were traded at around $8.86 with a P/E ratio of 17.0358 and P/S ratio of 2.635. The dividend yield of Provident New York Bancorp stocks is 2.71%. Provident New York Bancorp had an annual average earning growth of 1.4% over the past 10 years.

Highlight of Business Operations:

Total securities decreased by $22.1 million, to $1.1 billion at December 31, 2012 as compared to September 30, 2012. Securities represented 29.9% of total assets at December 31, 2012 compared to 28.7% of total assets at September 30, 2012. Over time we expect securities will decline as a percentage of total assets as our relationship teams add loans to our portfolio. For the three months ended December 31, 2012, securities purchases were $109.0 million, sales of securities were $42.0 million, and maturities, calls, and repayments were $85.5 million. Unrealized gains decreased the carrying values of securities by $4.2 million. Securities gains net of OTTI losses were $1.4 million and net amortization of securities was $765,000 for the period ended December 31, 2012.

Net income for the three months ended December 31, 2012 was $7.0 million or $0.16 per diluted share, an increase of $1.3 million compared to $5.7 million or $0.15 per diluted share, for the three months ended December 31, 2011. The primary factors contributing to the increase in earnings for the current period were higher net interest income of $4.7 million or 20.2% and an increase in non-interest income of $483,000 or 6.73% resulting mainly from net gain on sales of loans and other loan fee income. These increases were partially offset by a $1.0 million increase in the provision for loan losses and an increase in non-interest expense of $1.8 million or 8.81% driven by increases in compensation and employee benefits associated with the hiring of our new banking teams. Per share data were affected by the increase in weighted average shares outstanding due to shares issued in the Company s August 2012 common equity offering.

Non-interest income for the three months ended December 31, 2012 increased by $483,000 or 6.73% to $7.7 million compared to the first quarter of fiscal 2012. Net gain on sale of loans increased by $306,000 given increased volume in sales of one-to four-family residential loans, and other loan fees included in other non-interest income increased by approximately $700,000 due to higher loan transaction volumes and loan prepayments. Offsetting these increases was a decline in net gain on sale of securities of $573,000 for the three months ended December 31, 2012 compared to the three months ended December 31, 2011.

Income tax expense increased $1.0 million to $3.1 million for the three months ended December 31, 2012, compared to $2.0 for the period ended December 31, 2011. The effective tax rate was 30.4% for the period ended December 31, 2012 compared to 26.2% for the period ended December 31, 2011. The increase in the effective tax rate is attributable to higher pre-tax earnings and a reduction in the proportion of tax-exempt earnings from investment securities and bank owned life insurance.

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 loans and residential one-to four-family loans, and the purchase of investment securities. During the three months ended December 31, 2012 and 2011, our loan originations totaled $291.1 million and $231.6 million, respectively. Purchases of securities available for sale totaled $87.1 million and $151.2 million for the three months ended December 31, 2012 and 2011, respectively. Purchases of securities held to maturity totaled $21.9 million and $76.8 million for the three months ended December 31, 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 $262.4 million at December 31, 2012 and unused lines of credit granted to customers were $109.1 million at December 31, 2012. We anticipate that we will have sufficient funds available to meet current loan commitments and lines of credit.

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