8-K

SECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):  January 20, 2010PROVIDENT NEW YORK BANCORP(Exact Name of Registrant as Specified in Charter)

Delaware	0-25233	80-0091851
(State or Other Jurisdiction of Incorporation)	(Commission File No.)	(I.R.S. Employer Identification No.)

400 Rella Boulevard, Montebello, New York	10901
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (845) 369-8040

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02.          Results of Operations and Financial Condition

On January 20, 2010 Provident New York Bancorp issued a press release regarding its earnings for the first fiscal quarter ending December 31, 2009. The press release is included as Exhibit 99 to this report. The information included in Exhibit 99 is considered to be “furnished” and shall not be deemed “filed” under the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under that section. The information in this Current Report shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.

Item 9.01.         Financial Statements and Exhibits

The Index of Exhibits immediately precedes the attached exhibits.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

PROVIDENT NEW YORK BANCORP
DATE:	January 20, 2010	By:	/s/ Paul A. Maisch
			Paul A. Maisch
			Executive Vice President and
			Chief Financial Officer

EXHIBIT INDEX

The following exhibits are filed as part of this report:

Exhibit No.	Description
99	Press Release of Provident New York Bancorp Dated January 20, 2010

EX-99

Exhibit 99

Provident New York Bancorp Announces First Quarter 2010 Earnings of $0.16 Per Diluted Share

MONTEBELLO, N.Y.--(BUSINESS WIRE)--January 20, 2010--Provident New York Bancorp (NASDAQ-Global Select Market: PBNY), the parent company of Provident Bank, today announced first-quarter results for the fiscal year ending Sept. 30, 2010. Net income for the quarter was $6.2 million, or $0.16 per diluted share, compared to net income of $5.1 million, or $0.13 per diluted share for the linked quarter ended September 30, 2009 and net income of $6.3 million or $0.16 per diluted share for the first quarter of fiscal 2009.

President’s Comments

George Strayton, President and CEO, stated, "I am pleased to report our financial performance for the first quarter of the new fiscal year reflects continued earnings generation, supported by solid performance in our core business, continued realization of securities gains, management of discretionary expenses and fairy stable credit quality indicators. Although commercial loan demand in our legacy markets is soft as compared to last year at the same time we are encouraged by the good results seen from our expansion into Westchester County. Clearly, tax incentives, low interest rates and declining home prices resulted in an increase in home mortgage originations since the last quarter. Although our gross loan balances are down $26 million as compared to September 30, 2009 balances, this reduction is primarily driven by our strategy of selling current production fixed rate, long-term conforming mortgages to the secondary market or securitizing them. We continue to attract commercial transaction accounts, the core of our franchise value, as we focus on developing total banking relationships with our customers."

Key items for the quarter

• Net charge-offs of $2.6 million and non-performing loans at $26.7 million are relatively unchanged from the quarter ending September 30, 2009.
• Average transaction account balances increased to $710.8 million or 12.6 percent compared to quarter ended September 30, 2009 averages.
• Expense control continues to be a key focus of the Company. Non-interest expenses increased 2.8 percent when compared to the previous linked quarter, even though increases were seen in the non-controllable areas of pension plan expense, medical insurance and FDIC assessments.
• Net interest margin, while down over the first quarter of fiscal 2009 is flat when compared to the linked quarter ended September 30, 2009, as the Company continues to reposition its investment portfolio and to deploy excess funds into shorter term investments.
• Securities gains continue to be monetized contributing $2.4 million in non interest income during the first fiscal quarter of 2010, compared to $331,000 and $1.6 million in the first and fourth quarters of fiscal 2009.
• The Company announced an additional authorization of 2,000,000 shares to its stock repurchase program. During the quarter the Company repurchased 602,200 shares at a cost of $5.1 million. The remaining shares authorized to be repurchased under the August 2007 and December 2009 plans are 2,147,890 shares.

Credit Quality

Net charge-offs for the quarter were $2.6 million compared to $2.5 million last quarter and $2.0 million during the first fiscal quarter of 2009. Charge-off’s continue to be concentrated in the community business loan portfolio, which accounted for net charge off’s of $1.6 million on average outstandings of $99.4 million.

Substandard loans at December 31, 2009 were $100.5 million compared to $89.9 million at September 30, 2009, while special mention loans were $48.1 million and $47.8 million, respectively. Non-performing loans, however, remained approximately flat at $26.7 million compared to $26.5 million at September 30, 2009, while non performing assets went from $28.9 million to $29.4 million for the same period.

We continue to actively review our loan portfolio and work with our borrowers. Based on our analysis we have added $2.5 million to our allowance for loan loss and after recording $2.6 million in net charge offs this quarter our allowance for loan losses remained at $30.0 million, or 112 percent of non performing loans. This compares to 114 percent at September 30, 2009.

The table below outlines non-performing assets at December 31, 2009, by category with the related weighted loan to value ratios and specific reserves against such loans:

							WLTV after
	Book				Specific		Specific
Loans with Specific Reserves	Value		WLTV*		Reserve		Reserve
ADC	$	2,175,315	86	%	$	1,088,727	66	%
Commercial mortgage		1,502,764	103			454,426	67
Residential mortgage		2,979,998	93			549,045	71
Loans with out Specific Reserves
ADC		8,340,644	69			-	69
Commercial mortgage		5,385,392	69			-	69
Residential Mortgage		4,818,729	69			-	69
Total Mortgage secured		25,202,842	75			2,092,198	69
Loans not Mortgage Secured
Loans with specific reserves		577,002				319,162
Loans without specific reserves		914,155				-
Total non-performing loans		26,693,999				2,411,360
General reserves						27,555,640
Troubled Debt Restructures		419,168
Total allowance for loan losses						$ 29,967,000
ORE balance		2,332,113
Total non-performing assets	$	29,445,280

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

Net Interest Income and Margin

First quarter fiscal 2010 compared with first quarter fiscal 2009

Net interest income was $22.9 million for the first quarter of fiscal 2010, a $2.2 million decrease from the same quarter of fiscal 2009. The net interest margin on a tax-equivalent basis was 3.70 percent for the first quarter of fiscal 2010, compared to 4.0 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 175 basis points in the quarter ending December 31, 2008, as well as the repositioning of the investment portfolio. The tax-equivalent yield on investments decreased 142 basis points compared to the first fiscal quarter in 2009. As a result, the yield on interest-earning assets declined 80 basis points. For the same period, the cost of interest-bearing deposits decreased 84 basis points to 0.72 percent, and the cost of borrowings increased 70 basis points to 3.87 percent, reflecting the carry cost of term borrowings outstanding and repayment of short-term borrowings.

First quarter fiscal 2010 compared with linked quarter ended September 30, 2009

Net interest income for the quarter ended December 31, 2009, increased to $22.9 million from $22.5 million at quarter ended September 30, 2009. The tax-equivalent net interest margin decreased 1 basis point from 3.71 percent for the same period. During the quarter the Bank sold $136.8 million in securities and purchased $246.4 million. The overall yield of the investment portfolio and other earning assets declined 11 basis points during the first quarter, while interest bearing deposit costs declined 12 basis points.

Noninterest Income

First quarter fiscal 2010 compared with first quarter fiscal 2009

Noninterest income totaled $8.1 million for the fiscal first quarter, an increase of $2.3 million from $5.8 million in the first quarter of fiscal 2009. The increase was due to gains of $2.4 million resulting from the Company’s decision to realize a portion of the recent appreciation in its securities portfolio, monetizing other comprehensive income and reducing prepayment risk. Other factors contributing to the increase were gains on the sale of $15.5 million of loans with gains of $283,000. The Bank has been selling current production of conforming fixed rate residential mortgage loans in the secondary market to control interest rate risk. A fair value gain of $380,000 on interest rate caps that the Company purchased in the first quarter of fiscal 2010 was recorded. These increases were offset by a gain recorded on sales of premises in the first quarter of fiscal 2009.

First quarter fiscal 2010 compared with linked quarter ended September 30, 2009

Noninterest income increased on a linked-quarter basis, due to higher levels of securities gains realized and the aforementioned interest rate cap fair value adjustment, partially offset by a death payment received from Bank Owned Life Insurance in the fourth quarter of 2009.

Noninterest Expense

First quarter fiscal 2010 compared with first quarter fiscal 2009

The Company remained focused on controlling operating expenses, and as a result, non interest expense remained relatively unchanged increasing $659,000 when compared to the first quarter fiscal 2009. The increase is due primarily to increased medical and pension expense, FDIC insurance and occupancy expense. Occupancy expense increased due primarily to maintenance expense on buildings and equipment.

First quarter fiscal 2010 compared with linked quarter ended September 30, 2009

On a quarter-to-quarter basis, non-interest expense increased due to the expenses related to occupancy and employee benefits.

Income Taxes

The Company’s effective tax rate was 28.2 percent for the first quarter of fiscal 2010 and 30.7 percent for the first quarter of fiscal 2009. For the linked quarter ended September 30, 2009, the Company’s effective tax rate was 20.8 percent due to a BOLI payment received during that quarter.

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

• Period-end total deposits decreased $212.6 million from September 30, 2009, as municipal tax deposits of $201 million as of year end were utilized by the individual municipalities. Commercial and retail transaction accounts continued to grow. Savings accounts increased $11.6 million and certificates of deposits decreased $48.0 million. While loan demand is softer than a year ago due to the economic slowdown, commercial loan originations during the first quarter were $61.1 million, an increase of 2 percent over the first quarter of 2009. Residential originations were $19.4 million, an increase of 64 percent over 2009 levels. However, gross loan balances decreased by $26.2 million as fixed rate conforming residential loans sold into the secondary market totaled $15.5 million during the first quarter of fiscal 2010 and commercial loan repayments exceeded originations. Net loans totaled $1.65 billion, compared to $1.67 billion at September 30, 2009.
• Securities increased $20.3 million to $897.5 million, as the Company invested excess cash.
• Borrowings increased over September 30, 2009 levels as the Company began to utilize its overnight borrowing line with the FHLBNY, offsetting a portion of the municipal tax deposit withdrawals subsequent to September 30, 2009.

Capital and Liquidity

Provident Bank remained well-capitalized with excellent liquidity in the first quarter, as it continued to hold strong capital, with the Bank’s Tier 1 leverage ratio at 8.85 percent. The Company’s tangible capital as a percent of tangible assets increased to 9.25 percent as of December 31, 2009, while its tangible book value per share decreased to $6.51 from $6.60 at September 30, 2009 due to the effect of treasury repurchases and the change in other comprehensive income. Total capital decreased $7.1 million from September 30, 2009, to $420.3 million at December 31, 2009, due to a $3.8 million increase in the Company’s retained earnings and a $6.9 million decrease in accumulated other comprehensive income, including realizing securities gains in the fiscal year of $2.4 million. The Company repurchased 602,200 common shares, at a cost of $5.1 million during the quarter. On December 21, 2009 the Board of Directors approved a fifth stock repurchase program.

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 33 branches that serve the Hudson Valley region. 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.

Financial information contained in this release should be considered to be an estimate pending the filing of the Company's Quarterly Report on Form 10-Q for the quarter ended December 31, 2009 with the Securities and Exchange Commission. While the Company is not aware of any need to revise the results disclosed in this release, accounting literature may require adverse information received by management between the date of this release and the filing of the 10-Q to be reflected in the results of the fiscal quarter, even though the new information was received by management subsequent to the date of this release.

Provident New York Bancorp and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION
(unaudited, in thousands, except share and per share data)
		December 31,			September 30,
		2009			2009
Assets:
Cash and due from banks	$	39,819		$	160,408
Total securities		897,529			877,197
Loans held for sale		1,298			1,213
Loans:
One- to four-family residential mortgage loans		443,031			460,728
Commercial real estate, commercial business		777,760			789,396
Acquisition, development and construction loans		208,159			201,611
Consumer loans		248,082			251,522
Total loans, gross		1,677,032			1,703,257
Allowance for loan losses		(29,967	)		(30,050	)
Total loans, net		1,647,065			1,673,207
Federal Home Loan Bank stock, at cost		27,797			23,177
Premises and equipment, net		40,985			40,692
Goodwill		160,861			160,861
Other amortizable intangibles		4,996			5,489
Bank owned life insurance		49,448			49,611
Other assets		47,991			30,038
Total assets	$	2,917,789		$	3,021,893
Liabilities:
Deposits
Retail	$	166,905		$	169,122
Commercial		243,127			236,516
Municipal		7,794			86,596
Personal NOW deposits		137,113			127,595
Business NOW deposits		34,672			36,972
Municipal NOW deposits		91,399			188,074
Total transaction accounts		681,010			844,875
Savings		369,463			357,814
Money market deposits		372,159			384,632
Certificates of deposit		447,011			494,961
Total deposits		1,869,643			2,082,282
Borrowings		533,222			430,628
Borrowings Senior Note		51,495			51,494
Mortgage escrow funds and other		43,103			30,033
Total liabilities		2,497,463			2,594,437
Stockholders’ equity		420,326			427,456
Total liabilities and stockholders’ equity	$	2,917,789		$	3,021,893
Shares of common stock outstanding at period end		39,061,035			39,547,207
Book value per share	$	10.76		$	10.81

Provident New York Bancorp and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(unaudited, in thousands, except share and per share data)
						Quarter
	Quarter Ended					Ended
	December 31,					September 30,
	2009			2008		2009
Interest and dividend income:
Loans and loan fees	$	23,400		$	25,827	$	23,615
Securities taxable		4,752			7,893		4,666
Securities non-taxable		1,895			1,854		1,841
Other earning assets		371			297		360
		30,418			35,871		30,482
Interest expense:
Deposits		2,790			5,807		3,190
Borrowings		4,742			5,018		4,829
Total interest expense		7,532			10,825		8,019
Net interest income		22,886			25,046		22,463
Provision for loan losses		2,500			2,500		4,500
Net interest income after provision for loan losses		20,386			22,546		17,963
Non-interest income:
Deposit fees and service charges		2,993			3,138		3,137
Net gain on sales of securities		2,388			331		1,630
Title insurance fees		311			212		337
Bank owned life insurance		554			513		1,248
Gain on sale of premises and equipment		(44	)		517		-
Gain on sale of loans		283			6		215
Investment management fees		779			608		747
Fair value gain interest rate caps		380			-		-
Other		449			446		490
Total non-interest income		8,093			5,771		7,804
Non-interest expense:
Compensation and benefits		10,264			9,711		9,894
Stock-based compensation plans		452			857		621
Occupancy and office operations		3,326			3,079		3,195
Advertising and promotion		742			826		629
Professional fees		834			706		720
Data and check processing		550			565		563
Amortization of intangible assets		493			584		513
FDIC insurance and regulatory assessments		784			431		752
ATM/debit card expense		554			518		563
Other		1,895			1,958		1,909
Total non-interest expense		19,894			19,235		19,359
Income before income tax expense		8,585			9,082		6,408
Income tax expense		2,419			2,791		1,332
Net income	$	6,166		$	6,291	$	5,076
Per common share:
Basic earnings	$	0.16		$	0.16	$	0.13
Diluted earnings		0.16			0.16		0.13
Dividends declared		0.06			0.06		0.06
Weighted average common shares:
Basic		38,575,909			38,583,580		38,405,947
Diluted		38,649,174			38,818,569		38,532,411

Selected Financial Condition Data:		Three Months Ended
(in thousands except share and per share data)		12/31/09		09/30/09		06/30/09		03/31/09		12/31/08
End of Period
Total assets		$	2,917,789	$	3,021,893	$	2,824,356	$	2,954,701	$	2,921,551
Loans, gross (1)			1,677,032		1,703,257		1,714,429		1,735,507		1,746,605
Securities available for sale			851,028		832,583		689,286		739,595		795,017
Securities held to maturity			46,500		44,614		42,790		50,630		50,561
Bank owned life insurance			49,448		49,611		49,106		48,654		48,163
Goodwill			160,861		160,861		160,861		160,861		160,861
Other amortizable intangibles			4,996		5,489		6,002		6,533		7,090
Other non-earning assets			88,976		70,730		68,735		72,843		66,072
Deposits			1,869,643		2,082,282		1,872,983		2,008,766		1,898,142
Borrowings			584,717		482,122		488,228		490,139		566,519
Equity			420,326		427,456		420,775		421,406		416,998
Other comprehensive income / (loss) related to investment,
securities reflected in stockholders' equity			2,342		9,502		1,531		6,977		6,597
Average Balances
Total assets		$	2,886,880	$	2,837,511	$	2,875,999	$	2,961,719	$	2,907,948
Loans, gross:
Real estate- residential mortgage			451,894		465,472		484,276		504,406		510,386
Real estate- commercial mortgage			538,646		548,195		547,846		551,011		553,483
Real estate- Acquisition, Development & Construction			202,864		191,826		190,875		185,911		176,135
Commercial and industrial			239,698		246,590		245,375		248,047		246,913
Consumer loans			252,354		252,667		254,475		254,216		249,738
Loans total (1)			1,685,456		1,704,750		1,722,847		1,743,591		1,736,655
Securities (taxable)			626,734		576,363		520,948		623,470		647,414
Securities (non-taxable)			201,706		192,733		196,385		197,786		189,316
Total earning assets			2,563,965		2,511,431		2,549,237		2,632,350		2,582,405
Non earning assets			322,915		326,080		326,762		329,369		325,543
Non-interest bearing checking			418,961		402,643		373,252		365,971		380,021
Interest bearing NOW accounts			291,844		228,761		227,039		241,190		231,807
Total transaction accounts			710,805		631,404		600,291		607,161		611,828
Savings (including mortgage escrow funds)			372,911		386,943		378,263		352,199		347,826
Money market deposits			397,710		394,718		394,628		405,221		304,346
Certificates of deposit			477,377		494,530		575,713		646,527		595,595
Total deposits and mortgage escrow			1,958,803		1,907,595		1,948,895		2,011,108		1,859,595
Total interest bearing deposits			1,539,842		1,504,952		1,575,643		1,645,137		1,479,574
Borrowings			485,759		488,443		488,846		511,340		628,988
Equity			424,338		423,361		421,529		417,652		401,104
Selected Operating Data:
Condensed Tax Equivalent Income Statement
Interest and dividend income		$	30,418	$	30,482	$	31,651	$	33,586	$	35,871
Tax equivalent adjustment*			1,020		991		1,031		1,029		998
Interest expense			7,532		8,019		8,925		9,951		10,825
	Net interest income (tax equivalent)		23,906		23,454		23,757		24,664		26,044
Provision for loan losses			2,500		4,500		3,500		7,100		2,500
	Net interest income after provision for loan
	losses		21,406		18,954		20,257		17,564		23,544
Non-interest income			8,093		7,804		15,255		11,123		5,771
Non-interest expense			19,894		19,359		21,517		20,076		19,235
Income before income tax expense			9,605		7,399		13,995		8,611		10,080
Income tax expense (tax equivalent)*			3,439		2,323		5,045		3,067		3,789
	Net income	$	6,166	$	5,076	$	8,950	$	5,544	$	6,291
(1) Does not reflect allowance for loan losses of $29,967, $30,050, $28,027, $26,437 and $23,645
* Tax exempt income assumed at a 35% federal rate

		Three Months Ended
		12/31/09			09/30/09			06/30/09			03/31/09			12/31/08
Performance Ratios (annualized)
Return on Average Assets		0.85	%		0.71	%		1.25	%		0.76	%		0.86	%
Return on Average Equity		5.76	%		4.76	%		8.52	%		5.38	%		6.22	%
Non-Interest Income to Average Assets		1.11	%		1.09	%		2.13	%		1.52	%		0.79	%
Non-Interest Expense to Average Assets		2.73	%		2.71	%		3.00	%		2.75	%		2.62	%
Operating Efficiency Adjusted (2)		65.40	%		63.59	%		71.73	%		65.7	%		60.2	%
Analysis of Net Interest Income
Yield on Loans		5.61	%		5.59	%		5.64	%		5.63	%		5.98	%
Yield on Investment Securities- Tax Equivalent		3.67	%		3.87	%		4.70	%		5.17	%		5.09	%
Yield on Earning Assets- Tax Equivalent		4.86	%		4.97	%		5.14	%		5.33	%		5.66	%
Cost of Interest Bearing Deposits		0.72	%		0.84	%		1.04	%		1.30	%		1.56	%
Cost of Borrowings		3.87	%		3.92	%		3.96	%		3.71	%		3.17	%
Cost of Interest Bearing Liabilities		1.48	%		1.60	%		1.73	%		1.87	%		2.04	%
Net Interest Rate Spread- Tax Equivalent Basis		3.39	%		3.38	%		3.41	%		3.46	%		3.63	%
Net Interest Margin- Tax Equivalent Basis		3.70	%		3.71	%		3.74	%		3.80	%		4.00	%
Capital Information Data
Tier 1 Leverage Ratio- Bank Only		8.85	%		8.64	%		9.04	%		8.49	%		8.32	%
Tier 1 Risk-Based Capital- Bank Only		243,968			246,339			240,392			235,902			229,395
Total Risk-Based Capital- Bank Only		268,489			270,807			264,076			259,686			253,040
Tangible Capital Consolidated (3)		254,469			261,106			253,912			254,012			249,047
Tangible Capital as a % of Tangible Assets Consolidated (3)		9.25	%		9.14	%		9.55	%		9.11	%		9.04	%
Shares Outstanding		39,061,035			39,547,207			39,613,454			39,876,754			39,832,857
Shares Repurchased during qrtr(open market)		602,200			86,860			315,650			-			13,301
Basic weighted common shares outstanding		38,575,909			38,405,947			38,536,716			38,627,212			38,583,580
Diluted common shares outstanding		38,649,174			38,532,411			38,683,135			38,811,114			38,818,569
Basic Earnings per common share	$	0.16			0.13			0.23		$	0.14		$	0.16
Diluted Earnings per common share		0.16			0.13			0.23			0.14			0.16
Dividends Paid per common share		0.06			0.06			0.06			0.06			0.06
Book Value per common share		10.76			10.81			10.62			10.57			10.47
Tangible Book Value per common share (3)		6.51			6.60			6.41			6.37			6.25
Asset Quality Measurements
Non-performing loans (NPLs): non-accrual	$	21,432			21,909			20,600		$	21,567		$	13,486
Non-performing loans (NPLs): still accruing		5,262			4,560			3,180			4,861			4,561
Troubled Debt Restructures		419			674			1,199			0			0
Non-performing assets (NPAs)		29,445			28,855			26,566			28,202			19,821
Net Charge-offs		2,583			2,477			1,910			4,308			1,957
Net Charge-offs as % of average loans (annualized)		0.61	%		0.58	%		0.44	%		0.99	%		0.45	%
NPLs as % of total loans		1.59	%		1.55	%		1.39	%		1.52	%		1.03	%
NPAs as % of total assets		1.01	%		0.95	%		0.90	%		0.95	%		0.68	%
Allowance for loan losses as % of NPLs		112	%		114	%		118	%		100	%		131	%
Allowance for loan losses as % of total loans		1.79	%		1.76	%		1.63	%		1.52	%		1.35	%
(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 non interest income). We follow these practices.
(3) Provident Bank provides supplemental reporting of Non-GAAP tangible equity ratios as management believes this information is useful to investors. The following table shows the reconciliation of tangible equity and the tangible equity ratio:
		12/31/09			09/30/09			06/30/09			03/31/09			12/31/08
Total Assets	$	2,917,789		$	3,021,893		$	2,824,356		$	2,954,701		$	2,921,551
Goodwill and other amortizable intangibles		(165,857	)		(166,350	)		(166,863	)		(167,394	)		(167,951	)
Tangible Assets	$	2,751,932		$	2,855,543		$	2,657,493		$	2,787,307		$	2,753,600
Stockholders' equity		420,326			427,456			420,775			421,406			416,998
Goodwill and other amortizable intangibles		(165,857	)		(166,350	)		(166,863	)		(167,394	)		(167,951	)
Tangible Stockholders' equity	$	254,469		$	261,106		$	253,912		$	254,012		$	249,047
Outstanding Shares		39,061,035			39,547,207			39,613,454			39,876,754			39,832,857
Tangible capital as a % of tangible assets (consolidated)		9.25	%		9.14	%		9.55	%		9.11	%		9.04	%
Tangible book value per share	$	6.51		$	6.60		$	6.41		$	6.37		$	6.25

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