Provident New York Bancorp (PBNY) filed Quarterly Report for the period ended 2009-03-31.
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 $325.6 million; its shares were traded at around $8.17 with a P/E ratio of 13 and P/S ratio of 2. The dividend yield of Provident New York Bancorp stocks is 3%. 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 March 31, 2009 were $1.7 billion, which was the same at September 30, 2008. Commercial loans increased by $15.9 million, or 1.6%, over balances at September 30, 2008, as the Company has increased its emphasis on commercial and industrial (C&I) lending. Consumer loans increased by $4.5 million, or 1.8%, during the six month period ended March 31, 2009, while residential mortgage loans decreased by $16.5 million, or 3.2% primarily due to new loan originations being sold in the secondary market. Total loan originations were $242.3 million for the six months ended March 31, 2009 and repayments were $215.5 million during the same time period. Provident Bank does not originate or hold subprime mortgage loans, which we consider to be loans to borrowers with subprime credit scores combined with either high loan-to-value or high debt-to-income ratios. We also hold no subprime loans through our investment portfolio.
Total securities decreased by $44.5 million, or 5.3%, to $790.2 million at March 31, 2009 due to sales of securities. Mortgage-backed securities at amortized cost decreased by $85.4 million primarily due to sales of $133.9 million and pay downs of $52.7 million, partially offset by purchases totaling $101.5 million. Increases were seen in state and municipal securities of $9.3 million and U.S. Government federal agency securities increased $10.0. The Company owns $12.8 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.
Deposits as of March 31, 2009 were $2.0 billion, a increase of $19.6 million, or 1.0%, from September 30, 2008. Retail and commercial transaction accounts were 29.8% of deposits at March 31, 2009 and 41.3% at September 30, 2008. A decrease in demand deposits of $122.6 million, was offset by an increase in retail and commercial NOW accounts of $5.2 million and an increase in certificate of deposit accounts of $102.1 million. Money market deposits increased by $119.6 million and savings deposits increased by $20.6 million. Within the categories above, municipal transaction accounts decreased by $215.3 million due to seasonal tax collections at September 30, 2008, municipal money market increased by $134.4 million, municipal savings accounts increased by $1.9 million and municipal certificates of deposits increased by $50.0 million.
Stockholders equity increased $22.2 million from September 30, 2008 to $421.4 million at March 31, 2009, primarily due to an increase in other comprehensive income of $13.1 million, after realization of $6.4 million in gain on sales of securities. An increase of $6.3 million in the Companys retained earnings to $145.1 million and stock based compensation transactions of $2.1 million added to the overall increase in capital. Stock repurchases were undertaken at lower levels than in recent quarters. As of March 31, 2009, 1,152,600 shares remain available for repurchase under the Companys current stock repurchase program.
Net charge-offs for the quarter were $4.3 million (0.99% of average loans, on an annualized basis), compared to $2.0 million in the prior linked quarter and $1.9 million for the quarter ended March 31, 2008. Net charge-offs of $3.1 million were in the community business loan portfolio which continues to be impacted by the ongoing sluggishness of the economy, on average outstandings of $106.4 million. Net charge- offs in the ADC portfolio totaled $700,000. Net charge-offs on a year to date basis were $6.3 million for fiscal 2009 compared to $2.7 million for fiscal 2008.
Net income for the three months ended March 31, 2009 was $5.5 million, an increase of $0.5 million, compared to $5.1 million for the same period in fiscal 2008. Net interest income before provision for loan losses for the three months ended March 31, 2009 increased by $0.4 million or 1.7%, to $23.6 million, compared to $23.2 million for the same period in the prior year. The provision for loan losses for the three months ended March 31, 2009 increased $4.1 million, or 136.7%, to $7.1 million, compared to $3.0 million 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 March 31, 2009 decreased 9 basis points compared to the same period last year from 3.89% to 3.80%, 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 $670.8 million in floating rate loans that have reduced rates as a result of decreases in the short term rates such as the prime rate and Libor. Non-interest income for the three months ended March 31, 2009, was $11.1 million, an increase of $5.4, compared to $5.8 million for the same period in fiscal 2008 due to increases in gains on sales of securities of $5.1 million. Non-interest expense increased $1.2 million, or 6.09%, to $20.1 million for the three months ended March 31, 2009, compared to $18.9 million for the same period in the prior year primarily due to higher salary and benefit costs of $0.8 million. The relevant operating results performance measures follow:
Irving Kahn of Kahn Brothers & Company Inc., Irving Kahn of Kahn Brothers & Company Inc., Bruce Sherman of Private Capital Management.