William Vacca and President and CEO George Strayton break ground on the bank”™s 34th branch in the Hudson Valley.
As George Strayton stood a bit sweaty but shovel-ready for the groundbreaking photo in West Nyack on June 8, he took off his helmet and smiled broadly ”“ with good reason. Provident Bank was breaking ground on its 34th location in the Hudson Valley.
The 4,000-square-foot branch that will be built on Route 9W near Nyack Hospital represents another addition in Provident”™s expansive territory, which reaches into Westchester and Sullivan counties, as well as northern New Jersey.
But the real success story “is the caliber of talent we have working with us,” said Strayton, the bank”™s president and CEO. “We”™ve had other bankers join us from mega-banks amazed to find we are not only technologically as savvy and up-to-the-minute when it comes to 21st century technology, but we base our community relations on 20th century personal contact. You can have all the technology in the world ”“ it”™s that personal contact that builds the relationships between the customers and the bank that keeps us growing.”
In its April report to shareholders, Provident announced net income of $11.8 million for the second quarter of this year compared with $11 million for the second quarter of 2008. “I”™m pleased to report that earnings for the past six months and the last quarter exceed previous periods, albeit with support from security gains,” Strayton said in the shareholders”™ report. “Our customers are being impacted by the ongoing downturn in the economy, but our financial strength remains solid, evidenced by strong capital ratios, high levels of liquidity and continued good credit quality.”
The report stated that net loan balances were essentially flat in the fiscal second quarter of 2009, reflecting the stagnant economy. Notwithstanding the downturn, Provident declined to participate in the U.S. Treasury Department”™s Capital Purchase Program, Strayton said. “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 the community.”
The bank generated $242 million in new loans for the fiscal year to date. Provident”™s worth is estimated at $2.9 billion.
With 550 employees, Strayton has concerns about the impact the new Metropolitan Transportation Authority”™s “mobility tax” will have on its business and residential customers. “It”™s costing a lot of money and no benefit to the west side of the Hudson; it”™s going to make the cost of doing business all the more expensive,” Strayton said. “And you know that somewhere down the line, the consumer is the one who will pay for it one way or another. I”™d like to see Rockland County get out and deal directly with New Jersey Transit … this ”˜mobility tax”™ is a business killer for a region that relies on small business.”
And despite reports that banks aren”™t lending, “we are lending,” Strayton said. “Our business is based on small and medium-size businesses and our residential customers. If someone came along with a $150 million deal for a risky operation, yes, we”™d probably ask them to try a bigger bank that is willing to take those kind of risks. We are careful with our depositors”™ money ”“ it belongs to them, and we are the stewards. We”™ve got to make good decisions to keep the bank healthy and continue to lend money.”
