Provident Bank”™s parent company, Provident Bancorp, reported a net income of $4.8 million for an increase of 12 cents per diluted share for the quarter ending June 30. Provident”™s fiscal year ends Sept. 30. In the same quarter of 2009, Provident”™s earnings were $4.3 million higher.
In a teleconference on July 28, George Strayton, president and CEO of Provident, said, “We”™ve now seen steady improvement in our net interest margins since September, 2009. Depreciation this past quarter is mainly due to originations on commercial loans, with yields improving to 5.94 from 5.76, or 18 basis points. The duration on this portfolio is approximately a half year.”
As of June 30, Provident had $16.8 million in unrealized gains in its available for-sale portfolio and has positioned the portfolio for a rising rate environment, according to Strayton.
Provident is currently purchasing $50 million in highly rated municipal bonds, with funding made available through the American Reinvestment and Recovery Act, said Strayton.
Is Provident seeking to broaden its horizons? “We are always interested in expanding in contiguous markets,” said Strayton. “The lower Hudson Valley is where we like to be. Unemployment rates are significantly lower here than New York state or nationally. Rockland, Putnam and Westchester are all showing unemployment rates below seven percent.”
Provident Bank trades on NASDAQ under the symbol PBNY.
