Provident New York Bancorp Announces Fiscal Second Quarter 2009 Earnings Increase 7.7%

MONTEBELLO, N.Y.--(Business Wire)--
Provident New York Bancorp (NASDAQ-Global Select Market: PBNY), the parent
company of Provident Bank, today announced second-quarter results for the fiscal
year ending Sept. 30, 2009. Net income for the quarter was $5.5 million, or
$0.14 per diluted share, compared to net income of $5.1 million, or $0.13 per
diluted share for the second quarter of fiscal 2008. Net income for the six
months ended March 31, 2009 was $11.8 million, or $0.30 per diluted share,
compared to $11.0 million, or $0.28 per diluted share for the same period in
2008.

President`s Comments

"I am pleased to report that our earnings for the past six months and the last
quarter exceed the previous periods, albeit, with support from security gains.
As seen in our financial report, our customers are being impacted by the ongoing
downturn in the economy," said George Strayton, President and CEO. "Our
financial strength remains solid, as evidenced by our strong capital ratios,
high levels of liquidity and continued good credit quality.

"The prolonged economic downturn continues to put a strain on the ability of
some customers to meet their loan obligations, which is reflected in the
increase in charge-offs during the second quarter. These charge-offs continue to
be centered in the small business loan portfolio. As expected, the Acquisition,
Development and Construction (ADC) loan portfolio continues to be stressed as a
reflection of the slowness in the housing market, pushing up the "non performing
loans" total to 1.5 percent of loans, a ratio still reflective of a quality loan
portfolio.

"In recognition of those increases Provident added to the "allowance for loan
losses" to cover this uptick. Just as importantly we are actively working with
each borrower to bring projects to successful conclusions. The residential and
consumer loan portfolios are performing extremely well, as is the investment
portfolio."

Key items for the quarter include:

* The Bank is well capitalized with a Tier 1 risk-based capital ratio at 12.41
percent, total risk-based capital ratio at 13.80 percent and its leverage ratio
at 8.50 percent.
* Net charge-offs increased to $4.3 million (0.99 percent 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, due primarily to the performance
of the community business loan portfolio.
* Loan-loss provision increased by $4.1 million and $4.6 million over the second
quarter of fiscal 2008 and the linked quarter respectively, to $7.1 million
($2.8 million in excess of net charge-offs). Allowance for loan losses increased
to $26.4 million, or 1.52 percent of loans outstanding and 100 percent of
non-performing loans.
* Realized gains on sales of securities were $6.1 million for the three months
ended March 31, 2009 compared to $1.0 million for the same period in 2008 and
$331,000 for the linked quarter ending December 31, 2008.
* Net interest margin on a fully tax-equivalent basis was 3.80 percent for the
second quarter of fiscal 2009 as compared to 3.89 percent for the second quarter
of fiscal 2008 and 4.0 percent for the linked quarter.
* Deposits grew $110.6 million as a result of an influx of deposits during the
quarter. Transaction accounts were $598.1 million at March 31, 2009, compared to
$594.6 million at December 31, 2008. Savings accounts and Municipal money market
deposit accounts grew $20.4 million and $126.7 million respectively over
December 31, 2008 levels.
* Loans outstandings were relatively unchanged during the second quarter of
fiscal 2009. The commercial and consumer portfolios grew, while the residential
mortgage portfolio declined primarily due to new loan originations being sold
into the secondary market.

Capital and Liquidity

Provident Bank remained well-capitalized with excellent liquidity in the second
quarter. We continued to build capital during fiscal 2009, with the Bank`s
leverage ratio increasing to 8.50 percent. The Company`s tangible capital as a
percent of tangible assets increased to 9.11 percent as of March 31, 2009, while
its tangible book value improved to $6.37 from $5.78 at September 30, 2008.
Total capital increased $22.2 million from September. 30, 2008, to $421.4
million at March 31, 2009, due to a $6.3 million increase in the Company`s
retained earnings to $145.1 million and a $13.1 million improvement in
accumulated other comprehensive income, after realizing security gains in the
quarter of $6.1 million. There were no open market stock repurchases during the
second quarter of fiscal 2009.

"It is important to reiterate that we elected not to participate in the U.S.
Treasury Department`s Capital Purchase Program due to our strong capital
levels," said Strayton. "We have the financial capacity to continue being a
major lender in the Hudson Valley, and we remain committed to maintaining and
expanding our lending programs to benefit our customers and community. I am also
pleased to report the generation of $242 million in new loans for the fiscal
year to date evidencing our continued support to our local communities with
credit as we have done for over the past 120 years."

As a result of the diminished liquidity in the credit markets, the Bank focused
on increasing its liquidity, which has strengthened the balance sheet and
resulted in a minor compression on net interest margin in the current quarter.
The Bank issued $51.5 million in senior unsecured debt under the FDIC`s
Temporary Liquidity Guarantee Program. In addition to supporting the Company`s
strong capital and liquidity positions, it enables the Bank to better serve its
local communities through increased lending to creditworthy borrowers. As of
March 31, 2009 the Bank maintained $107.7 million in cash at the Federal Reserve
Bank compared to $6.7 million at September 30, 2008 for enhanced liquidity
purposes. Further, the Bank had no outstanding overnight borrowings under its
$200 million line of credit facility with the Federal Home Loan Bank. The
Company`s high quality investment portfolio consists primarily of securities
issued by U.S. Government Sponsored Agencies and general obligations of
municipalities and provides an additional source of liquidity.

Credit Quality

Net charge-offs for the quarter were $4.3 million (0.99 percent 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. Write downs in the ADC portfolio totaled $700,000.

The Company`s loan-loss provision was $7.1 million in the second quarter, $2.8
million in excess of net charge-offs. This resulted in an increase in the
allowance for loan losses to $26.4 million, or 1.52 percent of loans
outstanding, and 100 percent of non-performing loans. The primary reasons for
increasing the allowance for loan losses continues to be related to the general
economic slowdown.

Nonperforming loans increased $8.4 million in the second quarter to $26.4
million compared to $18.0 million at December 31, 2008, of this total, ADC loans
comprising four borrowers were $7.8 million of this increase. This rise is
primarily due to ongoing stress in the Bank`s construction portfolio resulting
from the stagnant housing and real estate markets. The Bank`s coverage ratio of
nonperforming loans declined from 131 percent at December 31, 2008, to 100
percent at March 31, 2009.

The table below outlines those non-performing loans, at March 31, 2009, which
are secured by real property, by category with the related loan to value ratios
and specific reserves against such loans:

LTV after
Book Specific Specific
Loans with Specific Reserves Value LTV* Reserve Reserve
ADC $ 9,727 99 % $ 1,729 81 %
Commercial mortgage 2,088 72 482 56
Residential mortgage 1,858 81 376 73
Non-mortgage loans 104 - 43 -

Loans with out Specific Reserves
ADC 2,049 79 - 79
Commercial mortgage 4,548 57 - 57
Residential Mortgage 4,980 53 - 53
Non-mortgage loans 1,074 - - -
Total non-performing loans $ 26,428 2,630
General reserves 23,807
Total allowance for loan losses $ 26,437

*LTV is the gross loan value plus negative escrows (before specific reserves)
divided by current appraised value of the collateral securing the loan.

Other real estate owned in the second quarter totaled $1.8 million, unchanged
over the end of the previous linked quarter and an increase compared to $138,000
at March 31, 2008.

Net Interest Income and Margin

Second quarter fiscal 2009 compared with second quarter fiscal 2008

Net interest income was $23.6 million for the second quarter of fiscal 2009, a
$394,000 increase from the same quarter of fiscal 2008. The net interest margin
on a tax-equivalent basis was 3.80 percent for the second quarter of fiscal
2009, compared to 3.89 percent for same period a year ago. The year-over-year
comparison reflects the impact of the cuts in the federal funds target rate
totaling two percent. As a result, the yield on loan balances declined 100 basis
points. For the same period, the cost of interest-bearing deposits decreased 104
basis points to 1.30 percent, and the cost of borrowings decreased 7 basis
points to 3.71 percent, reflecting the carry cost of term borrowings
outstanding. The tax-equivalent yield on investments decreased 2 basis points
compared to the same quarter in 2008.

Second quarter fiscal 2009 compared with linked quarter ended December 31, 2008

Net interest income for the quarter ended March 31, 2009, decreased $1.4 million
from the quarter ended December 31, 2008. The tax-equivalent net interest margin
decreased 20 basis points from 4.0 percent for the same period. During the
quarter the Bank sold $164.6 million in securities and purchased $147.5 million.
The overall yield of the investment portfolio declined 8 basis points at March
31, 2009. Further, the excess proceeds from the sales over purchases plus normal
principal payments have been kept liquid at the Federal Reserve, earning 25
basis points on an average balance of $66.4 million. The $51.5 million debt
issued with FDIC backing allowed the Bank to reduce its borrowings with the
Federal Home Loan Bank. The combination of these two items significantly
enhanced the liquidity position of the Bank, but led to a 14 basis point
reduction in net interest margin compared to the linked quarter.

Year-to-date comparison fiscal 2009 to fiscal 2008

On a year-to-date basis, net interest income increased $3.1 million for the
six-month period ended March 31, 2009, as compared to the same period in 2008,
with the tax equivalent net interest margin increasing from 3.82 percent to 3.90
percent.

Noninterest Income

Second quarter fiscal 2009 compared with second quarter fiscal 2008

Noninterest income increased to $11.1 million from $5.8 million in the second
quarter of fiscal 2008 to the second quarter of fiscal 2009. The increase was
due to gains of approximately $5.1 million resulting from the Company`s decision
to realize a portion of the recent appreciation in its security portfolio. The
Company may realize further gains from its security holdings, if conditions
justify such action. The increase also was due to gains on the sale of loans in
the second quarter of $290,000. The Bank is selling current loan originations in
the secondary market to control interest rate risk. Fee income was stable in the
second quarter.

Second quarter fiscal 2009 compared with linked quarter ended December 31, 2008

Noninterest income increased on a linked-quarter basis, due to high levels of
securities gains realized and gains on sales of loans in the second quarter of
fiscal 2009.

Year-to-date comparison fiscal 2009 to fiscal 2008

Noninterest income increased compared to the same period in 2008. Increases were
driven primarily by gain on sale of securities with smaller contributions from
deposit fees and service charges as well as proceeds from the sale of premises.
Modest declines were seen in investment management fees as the market value of
assets under management declined.

Noninterest Expense

Second quarter fiscal 2009 compared with second quarter fiscal 2008

The Company remained focused on controlling operating expenses. Noninterest
expense increased by $1.2 million, or 6.09 percent, over the second quarter of
fiscal 2008, primarily due to increased pension and medical expense totaling
$443,000 as well as increased FDIC assessments of $569,000.

Second quarter fiscal 2009 compared with linked quarter ended December 31, 2008

On a quarter-to-quarter basis, non-interest expense increased 4.37 percent
primarily due to costs associated with advertising and promotion, professional
fees and FDIC assessments. Normal salary increases effective January 2009 and
the increase in staffing for the White Plains office were offset by lower levels
of incentive compensation accruals during the period.

Year-to-date comparison fiscal 2009 to fiscal 2008

Noninterest expense increased by $2.3 million, or 6.11 percent, over the same
period in 2008, primarily in the areas of compensation and benefits (especially
pension and medical expense increases of $827,000) and FDIC assessments that
increased by $800,000.

Income Taxes

The Company`s effective tax rate was 26.88 percent for the second quarter of
fiscal 2009 and 28.10 percent for the second quarter of fiscal 2008. For the
linked quarter ended December 31, 2008, the Company`s effective tax rate was
30.73 percent.

Key Balance Sheet Changes at March 31, 2009 compared to September 30, 2008

* Net loan balances were essentially flat in the fiscal second quarter of 2009,
reflecting the stagnant economy. Residential loans declined $16.5 million, as
the Company is selling its residential fixed rate conforming loan originations
into the secondary market. Gross loans totaled $1.74 billion, compared to $1.65
billion in the year-ago period.
* Securities decreased $44.5 million to $790.2 million, as the Company sold
securities with market gains to improve liquidity.
* Deposit flows were strong as a result of an influx of funds that came into the
Bank during the second quarter. Period-end deposits increased $19.6 million at
March 31, 2009, as compared to September 30, 2008 due to increases in savings,
certificates of deposits and municipal money market deposits offset by seasonal
declines in municipal transaction accounts.

Additional Information

* The sharp rise in FDIC insurance premiums during the year added $800,000 to
the Company`s noninterest expense during fiscal 2009. The FDIC has announced
plans to impose a special assessment on insured banks of 20 basis points in
addition to regular insurance premiums. If this assessment occurs, the potential
impact would be approximately a $4 million increase in noninterest expense in
the fiscal third quarter of 2009.
* The Company holds $464.4 million in mortgage backed securities issued by FHLMC
and FNMA. The Company also holds approximately $9.5 million in private label CMO
pass through securities, all of which are performing at March 31, 2009, with an
amortized cost of $12.8 million.
* The Company opened a new facility in White Plains, Westchester County, New
York. This facility will serve primarily to originate and service commercial
customers.

About Provident New York Bancorp

Headquartered in Montebello, New York, Provident New York Bancorp is the parent
company of Provident Bank, an independent full-service community bank. Provident
Bank operates 34 branches that serve the Hudson Valley region and Bergen County,
New Jersey. The Bank offers a complete line of commercial, retail and investment
management services. For more information, visit the Company`s web site at
www.providentbanking.com.

FORWARD-LOOKING STATEMENTS AND ASSOCIATED RISK FACTORS

In addition to historical information, this earnings release may contain
forward-looking statements for purposes of applicable securities laws. Any
statements contained herein that are not statements of historical fact may be
deemed to be forward-looking statements. Forward-looking statements are subject
to numerous assumptions, risks and uncertainties. There are a number of
important factors described in documents previously filed by the Company with
the Securities and Exchange Commission, and other factors that could cause the
Company`s actual results to differ materially from those contemplated by such
forward-looking statements. The Company undertakes no obligation to publicly
release the results of any revisions to those forward-looking statements which
may be made to reflect events or circumstances after the date of this release or
to reflect the occurrence of unanticipated events.

Provident New York Bancorp and Subsidiaries

CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION

(unaudited, in thousands, except share and per share data)
March 31, September 30, March 31,
2009 2008 2008
Assets:

Cash and due from banks $ 139,190 $ 125,810 $ 44,627
Total securities 790,225 834,701 837,268
Loans held for sale 3,918 189 -
Loans:
One- to four-family residential mortgage loans 496,862 513,381 505,727
Commercial real estate, commercial business and construction loans 985,361 969,432 905,425
Consumer loans 253,284 248,740 242,486
Total loans, gross 1,735,507 1,731,553 1,653,638
Allowance for loan losses (26,437) (23,101) (21,413)
Total loans, net 1,709,070 1,708,452 1,632,225
Federal Home Loan Bank stock, at cost 23,407 28,675 32,953
Premises and equipment, net 37,759 36,716 33,504
Goodwill 160,861 160,861 161,214
Other amortizable intangibles 6,533 7,674 8,921
Bank owned life insurance 48,654 47,650 41,680
Other assets 35,084 33,643 31,114
Total assets $ 2,954,701 $ 2,984,371 $ 2,823,506
Liabilities:
Deposits
Demand deposits $ 365,290 $ 487,890 $ 342,027
NOW deposits 232,780 332,904 186,116
Total transaction accounts 598,070 820,794 528,143
Savings 356,585 335,986 341,210
Money market deposits 426,120 306,504 300,836
Certificates of deposit 627,991 525,913 551,912
Total deposits 2,008,766 1,989,197 1,722,101
FHLB Borrowings 438,646 566,008 664,115
Borrowings Senior Debt (FDIC guaranteed) 51,493 - -
Mortgage escrow funds and other 34,390 30,008 29,127
Total liabilities 2,533,295 2,585,213 2,415,343
Stockholders` equity 421,406 399,158 408,163
Total liabilities and stockholders` equity $ 2,954,701 $ 2,984,371 $ 2,823,506

Shares of common stock outstanding at period end 39,876,754 39,815,213 40,086,491
Book value per share $ 10.57 $ 10.03 $ 10.18

Provident New York Bancorp and Subsidiaries

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

(unaudited, in thousands, except share and per share data)
Quarter
Quarter Ended Ended Dec Six Months Ended
March 31, 31, March 31,
2009 2008 2008 2009 2008
Interest and dividend income:
Loans and loan fees $ 23,859 $ 26,840 25,827 49,686 55,471
Securities taxable 7,533 8,093 7,893 15,426 16,009
Securities non-taxable 1,910 1,706 1,854 3,764 3,340
Other earning assets 284 726 297 581 1,390
33,586 37,365 35,871 69,457 76,210
Interest expense:
Deposits 5,274 7,785 5,807 11,081 16,708
Borrowings 4,677 6,339 5,018 9,695 13,887
Total interest expense 9,951 14,124 10,825 20,776 30,595
Net interest income 23,635 23,241 25,046 48,681 45,615
Provision for loan losses 7,100 3,000 2,500 9,600 3,700
Net interest income after provision for loan losses 16,535 20,241 22,546 39,081 41,915

Non-interest income:
Deposit fees and service charges 3,035 3,061 3,138 6,173 6,083
Net gain on sales of securities 6,093 961 331 6,424 961
Title insurance fees 201 76 212 413 345
Bank owned life insurance 492 428 513 1,005 862
Gain on sale of premises and equipment - - 517 517 -
Investment management fees 599 729 608 1,207 1,492
Other 703 498 452 1,155 969
Total non-interest income 11,123 5,753 5,771 16,894 10,712

Non-interest expense:
Compensation and benefits 9,857 9,061 9,711 19,568 17,691
Stock-based compensation plans 825 924 857 1,682 1,920
Occupancy and office operations 3,218 3,294 3,079 6,297 6,219
Advertising and promotion 1,024 828 826 1,850 1,695
Professional fees 876 892 706 1,582 1,775
Data and check processing 598 694 565 1,163 1,267
Amortization of intangible assets 557 662 584 1,141 1,352
FDIC insurance and regulatory assessments 769 200 431 1,200 400
ATM/debit card expense 470 455 518 988 956
Other 1,882 1,914 1,958 3,840 3,771
Total non-interest expense 20,076 18,924 19,235 39,311 37,046

Income before income tax expense 7,582 7,070 9,082 16,664 15,581
Income tax expense 2,038 1,987 2,791 4,829 4,604
Net income $ 5,544 $ 5,083 $ 6,291 $ 11,835 $ 10,977

Per common share:
Basic earnings $ 0.14 $ 0.13 $ 0.16 $ 0.30 $ 0.28
Diluted earnings 0.14 0.13 0.16 0.30 0.28
Dividends declared 0.06 0.06 0.06 0.12 0.12
Weighted average common shares:
Basic 38,627,212 38,847,528 38,583,580 38,605,156 39,160,462
Diluted 38,811,114 39,214,041 38,818,569 38,813,879 39,530,429

Selected Financial Condition Data: Three Months Ended
(in thousands except share and per share data) 03/31/09 12/31/08 09/30/08 06/30/08 03/31/08
End of Period
Total assets $ 2,954,701 $ 2,921,551 $ 2,984,371 $ 2,850,554 $ 2,823,506
Loans, gross (1) 1,735,507 1,746,605 1,731,553 1,687,851 1,653,638
Securities available for sale 739,595 795,017 791,688 777,161 801,784
Securities held to maturity 50,630 50,561 43,013 41,442 35,484
Bank owned life insurance 48,654 48,163 47,650 47,135 41,680
Goodwill 160,861 160,861 160,861 160,861 161,214
Other amortizable intangibles 6,533 7,090 8,329 8,966 9,633
Other non-earning assets 72,843 66,072 67,318 71,108 63,906
Deposits 2,008,766 1,898,142 1,989,197 1,775,720 1,722,101
Borrowings 490,139 566,519 566,008 635,596 664,115
Equity 421,406 416,998 399,158 401,141 408,163
Other comprehensive income / (loss) (SFAS 115), reflected in stockholders' equity 6,977 6,597 (5,892 ) (2,708 ) 5,638
Average Balances
Total assets $ 2,961,719 $ 2,907,948 $ 2,867,613 $ 2,822,885 $ 2,813,448
Loans, gross:
Real estate- residential mortgage 504,406 510,386 513,016 510,383 500,930
Real estate- commercial mortgage 551,011 553,483 552,930 528,308 530,267
Real estate- Acquisition, Development & Construction 185,911 176,135 159,698 150,900 153,816
Commercial and industrial 248,047 246,913 244,537 229,122 219,782
Consumer loans 254,216 249,738 241,776 240,488 243,552
Loans total (1) 1,743,591 1,736,655 1,711,957 1,659,201 1,648,347
Securities (taxable) 623,470 647,414 629,322 653,292 661,947
Securities (non-taxable) 197,786 189,316 183,115 177,933 168,968
Total earning assets 2,632,350 2,582,405 2,535,187 2,503,004 2,494,913
Non earning assets 329,369 325,543 332,426 319,881 318,535
Non-interest bearing checking 365,971 380,021 379,679 357,515 370,843
Interest bearing NOW accounts 241,190 231,807 198,621 189,629 169,187
Total transaction accounts 607,161 611,828 578,300 547,144 540,030
Savings (including mortgage escrow funds) 352,199 347,826 371,499 364,763 342,412
Money market deposits 405,221 304,346 302,205 311,120 267,310
Certificates of deposit 646,527 595,595 539,269 545,413 561,935
Total deposits and mortgage escrow 2,011,108 1,859,595 1,791,273 1,768,440 1,711,687
Total interest bearing deposits 1,645,137 1,479,574 1,411,594 1,410,925 1,340,844
Borrowings 511,340 628,988 655,281 629,325 675,150
Equity 417,652 401,104 402,314 405,692 405,326
Selected Operating Data:
Condensed Tax Equivalent Income Statement
Interest and dividend income $ 33,586 $ 35,871 $ 36,706 $ 36,066 $ 37,365
Tax equivalent adjustment* 1,029 998 951 929 918
Interest expense 9,951 10,825 11,169 11,878 14,124
Net interest income (tax equivalent) 24,664 26,044 26,488 25,117 24,159
Provision for loan losses 7,100 2,500 2,100 1,400 3,000
Net interest income after provision for loan losses 17,564 23,544 24,388 23,717 21,159
Non-interest income 11,123 5,771 5,306 5,024 5,753
Non-interest expense 20,076 19,235 19,499 18,955 18,924
Income before income tax expense 8,611 10,080 10,195 9,786 7,988
Income tax expense (tax equivalent)* 3,067 3,789 3,700 3,480 2,905
Net income $ 5,544 $ 6,291 $ 6,495 $ 6,306 $ 5,083
(1) Does not reflect allowance for loan losses of $26,437, $23,645, $23,101, $22,001, and $21,413
* Tax exempt income assumed at a 35% federal rate

Three Months Ended
03/31/09 12/31/08 09/30/08 06/30/08 03/31/08
Performance Ratios (annualized)
Return on Average Assets 0.76 % 0.86 % 0.90 % 0.90 % 0.73 %
Return on Average Equity 5.38 % 6.22 % 6.42 % 6.25 % 5.04 %
Non-Interest Income to Average Assets 1.52 % 0.79 % 0.74 % 0.72 % 0.82 %
Non-Interest Expense to Average Assets 2.75 % 2.62 % 2.71 % 2.70 % 2.71 %
Operating Efficiency Adjusted (2) 65.7 % 60.2 % 59.4 % 60.8 % 63.1 %
Analysis of Net Interest Income
Yield on:
Loans 5.63 % 5.98 % 6.25 % 6.30 % 6.63 %
Investment Securities- Tax Equivalent 5.17 % 5.09 % 5.19 % 5.18 % 5.19 %
Earning Assets- Tax Equivalent 5.33 % 5.66 % 5.91 % 5.94 % 6.17 %
Cost of:
Interest Bearing Deposits 1.30 % 1.56 % 1.54 % 1.76 % 2.34 %
Borrowings 3.71 % 3.17 % 3.47 % 3.64 % 3.78 %
Interest Bearing Liabilities 1.87 % 2.04 % 2.15 % 2.34 % 2.82 %
Net Interest Tax Equivalent:
Net Interest Rate Spread- Tax Equivalent Basis 3.46 % 3.63 % 3.76 % 3.60 % 3.35 %
Net Interest Margin- Tax Equivalent Basis 3.80 % 4.00 % 4.16 % 4.04 % 3.89 %
Capital Information Data
Tier 1 Leverage Ratio- Bank Only 8.50 % 8.32 % 8.01 % 8.32 % 8.14 %
Tier 1 Risk-Based Capital- Bank Only 236,089 228,697 226,054 223,391 215,420
Total Risk-Based Capital- Bank Only 262,526 252,342 249,155 245,392 236,833
Tangible Capital Consolidated 254,012 249,047 229,968 231,314 237,316
Tangible Capital as a % of Tangible Assets Consolidated 9.11 % 9.04 % 8.17 % 8.63 % 8.95 %
Shares Outstanding 39,876,754 39,832,857 39,815,213 39,839,335 40,086,491
Shares Repurchased during qrtr (open market) - 13,301 - 306,443 147,514
Basic weighted common shares outstanding 38,627,212 38,583,580 38,589,361 38,719,917 38,847,528
Diluted common shares outstanding 38,811,114 38,818,569 38,893,860 39,110,353 39,214,041
Per Common Share:
Basic Earnings $ 0.14 $ 0.16 $ 0.17 $ 0.16 $ 0.13
Diluted Earnings 0.14 0.16 0.17 0.16 0.13
Dividends Paid 0.06 0.06 0.06 0.06 0.06
Book Value 10.57 10.47 10.03 10.07 10.18
Tangible Book Value 6.37 6.25 5.78 5.81 5.92
Asset Quality Measurements
Non-performing loans (NPLs): non-accrual $ 21,567 $ 13,486 $ 13,589 $ 9,595 $ 9,014
Non-performing loans (NPLs): still accruing 4,861 4,561 3,289 4,647 4,536
Non-performing assets (NPAs) 28,202 19,821 16,962 14,380 13,688
Net Charge-offs 4,308 1,957 1,001 812 1,912
Net Charge-offs as % of average loans (annualized) 0.99 % 0.45 % 0.23 % 0.20 % 0.46 %
NPLs as % of total loans 1.52 % 1.03 % 0.97 % 0.84 % 0.82 %
NPAs as % of total assets 0.95 % 0.68 % 0.57 % 0.50 % 0.48 %
Allowance for loan losses as % of NPLs 100 % 131 % 137 % 154 % 158 %
Allowance for loan losses as % of total loans 1.52 % 1.35 % 1.33 % 1.30 % 1.29 %

(2) The efficiency ratio represents non-interest expense divided by the sum of net interest income and non-interest income. As in the case of net interest income, generally, net interest income as utilized in calculating
the efficiency ratio is typically expressed on a tax-equivalent basis. Moreover, most financial institutions, in calculating the efficiency ratio, also adjust both noninterest expense and noninterest income to exclude
from these items (as calculated under generally accepted accounting principles) certain component elements, such as non-recurring charges, other real estate expense and amortization of intangibles (deducted from non
interest expense) and security transactions and other non-recurring items (excluded from noninterest income). We follow these practices.

Provident Bank
Paul A. Maisch, EVP & Chief Financial Officer
or
Miranda Grimm, VP & Controller
845-369-8040

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