Provident New York Bancorp is a leading full-service independent community bank that helps families and businesses make the most of life?s opportunities. By combining state-of-the-art technology with our own brand of local decision making we can deliver the quality financial products and services you need how when and where you need them. Provident New York Bancorp has a market cap of $387.83 million; its shares were traded at around $10.37 with a P/E ratio of 17.1 and P/S ratio of 2.28. The dividend yield of Provident New York Bancorp stocks is 2.46%. Provident New York Bancorp had an annual average earning growth of 28.6% over the past 5 years. Highlight of Business Operations: Net Loans as of December 31, 2008 were $1.7 billion, an increase of $14.5 million, or 0.8%, over net loan balances of $1.7 billion at September 30, 2008. Commercial loans increased by $14.1 million, or 1.5%, over balances at September 30, 2008, as the Company has increased its emphasis on commercial and industrial (C&I) lending. Consumer loans increased by $3.4 million, or 01.4%, during the three month period ended December 31, 2008, while residential mortgage loans decreased by $2.4 million, or 0.5%. Total loan originations, excluding loans originated for sale, were $118.3 million for the three months ended December 31, 2008 and repayments were $101.6 million during the same time period.
Total securities increased by $10.9 million, or 1.3%, to $845.6 million at December 31, 2008 due to improvements in market value of $21.0 million from $834.7 million at September 30, 2008. Mortgage-backed securities at an amortized cost decreased by $22.1 million primarily due to pay-downs totaling $20.0 million. These decreases were partially offset by increases in state and municipal securities of $9.2 million primarily due to purchases and U.S. Government federal agency securities increased $824,000. The Company owns $13.5 million at cost of private label CMOs with a carrying value of $9.5 million. These securities are all currently performing and the Company does not believe any of these securities are other than temporarily impaired.
certificate of deposit accounts of $140.6 million. Money Market deposits decreased by $5.6 million or 1.8% and savings deposits increased by $153,000. Within the categories above, municipal transaction accounts decreased by $228.7 million, (of which $242.3 million relates to seasonal tax collections), municipal money market increased by $7.7 million, municipal savings accounts increased by $100,000 and municipal certificates of deposits increased by $95.4 million. We added staff resources to our municipal business, which has resulted in increased municipal relationships.
Stockholders equity increased $17.8 million from September 30, 2008 to $417.0 million at December 31, 2008, primarily due to an increase in other comprehensive income of $12.6 million. An increase of $3.8 million in the Companys retained earnings to $142.5 million and stock based compensation transactions of $1.3 million added to the overall increase in capital. Stock repurchases were undertaken at lower levels than in recent quarters. As of December 31, 2008, 1,152,600 shares remain available for repurchase under the Companys current stock repurchase program.
Net charge-offs for the quarter were $2.0 million (0.45% of average loans on an annualized basis) compared to $1.0 million in the prior linked quarter and $764,000 for the quarter ended December 31, 2007. Losses continue to be concentrated in the credit-scored community business loan portfolio. Net charge-offs in the community business loan portfolio for the first quarter were $1.5 million on average outstandings of $107.3 million. During the quarter the Company provided $2.5 million in loan loss provisions, which was $544,000 in excess of net charge-offs. This resulted in an increase in the allowance for loan losses to $23.6 million, or 1.35% of loans outstanding, and 131% of non-performing loans. The primary reasons for increasing the allowance for loan losses continue to be the growth in the commercial and industrial and construction loan portfolios and the general economic slowdown. Nonperforming loans increased $1.2 million in the first quarter to $18.0 million (1.03% of loans) compared to September 30, 2008, primarily in the area of commercial loans and residential mortgages. Non performing assets increased $2.9 million to $19.8 million (0.68% of assets) at December 31, 2008 compared to September 30, 2008 as the company completed the foreclosure of a property for $1.7 million in addition to the increase in non performing loans.
Net income for the three months ended December 31, 2008 was $6.3 million, an increase of $397,000, compared to $5.9 million for the same period in fiscal 2007. Net interest income before provision for loan losses for the three months ended December 31, 2008 increased by $2.7 million, or 12.0%, to $25.0 million, compared to $22.4 million for the same period in the prior year. The provision for loan losses for the three months ended December 31, 2008 increased $1.8 million, or 257%, to $2.5 million, compared to $700,000 for the same period in the prior year due to growth in the loan portfolio, weaker economic conditions and recent loss experience in the portfolios. Net interest margin on a tax equivalent basis for the three months ended December 31, 2008 increased 26 basis points compared to the same period last year from 3.74% to 4.00%, primarily due to increases in loans funded by maturing lower rate investments, and significant reductions in the average cost of deposits and borrowings, partially offset by approximately $664.7 million in floating rate loans that have reduced rates as a result of decreases in the prime rate. Non-interest income for the three months ended December 31, 2008, was $5.8 million, an increase of $812,000, compared to $5.0 million for the same period in fiscal 2008 due to gains on sale of premises and securities of $848,000. Non-interest expense increased $1.1 million, or 6.1%, to $19.2 million for the three months ended December 31, 2008, compared to $18.1 million for the same period in the prior year primarily due to higher salary and benefit costs of $1.1 million. Compensation and employee benefits increased due to employee related benefit costs and additional employees hired during fiscal 2008, as the Company added resources to its municipal business and opened a branch location in Tarrytown, Westchester County, New York.
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