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):  October 26, 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 October 26, 2010 Provident New York Bancorp (the “Company”) issued a press release regarding its earnings for the fourth fiscal quarter and fiscal year ending September 30, 2010. The press release is included as Exhibit 99 to this report.

 The press release includes information about the Company’s earnings, excluding securities gains and the fair value adjustment of interest rate caps.  The Company presents earnings excluding these factors so that investors can better understand the results of its core banking operations and to better align with the views of the investment community.

 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:	October 26, 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 October 26, 2010

EX-99

Exhibit 99

Provident New York Bancorp Announces Fourth Quarter 2010 Earnings of $0.14 per Diluted Share, $0.54 per Diluted Share for Fiscal 2010

MONTEBELLO, N.Y.--(BUSINESS WIRE)--October 26, 2010--Provident New York Bancorp (NASDAQ-Global Select Market: PBNY), the parent company of Provident Bank, today announced fourth-quarter results for the fiscal year ending Sept. 30, 2010. Net income for the quarter was $5.4 million, or $0.14 per diluted share, compared to net income of $4.8 million, or $0.12 per diluted share for the linked quarter ended June 30, 2010 and net income of $5.1 million or $0.13 per diluted share for the fourth quarter of fiscal 2009. Net income for fiscal year 2010 was $20.5 million, or $0.54 per diluted share compared to $25.9 million or $0.67 per diluted share for fiscal 2009. Fiscal 2009 results reflected significant securities gains not experienced to the same extent in fiscal 2010.

President’s Comments

George Strayton, President and CEO commented, “Provident performed comparatively well in a difficult economic environment this past fiscal year. The economy’s recovery has remained sluggish, resulting in slower loan growth and a slower recovery of credit quality industry-wide. Unemployment in our market, while showing some signs of improvement, has remained relatively flat. Yet, despite the economy’s challenges, I am very pleased that in fiscal 2010, we were able to grow commercial loan balances, increase transaction account balances, and hold expenses under control. As a result, we improved operating earnings during the fiscal year. After adjusting for gains on securities and the fair value of interest rate caps, net operating income improved over the prior year primarily due to improvement in our net interest income. Net interest income continues to be driven by our ability to attract and retain core deposits, as well as our deposit cost discipline. In addition, the fiscal year showed positive results from our continued market expansion into Westchester County. As we continue to strengthen our resources in the Westchester market during the year, we expect to be able to improve on these results in fiscal 2011.”

Key items for the quarter

• Excluding the after tax effect of securities gains and the fair value adjustment of interest rate caps, earnings were $0.10 per diluted share. This compares to $0.11 for the linked quarter and $0.11 for the fourth quarter of fiscal 2009. While we actively manage our securities portfolio as a component of our asset/liability management, we also present earnings excluding net securities gains and fair market value adjustments on interest rate caps. We believe this affords investors a better understanding of our core banking operations, and aligns more closely to the views of the investment community, which tends to adjust for more variable components of income.
• Net interest margin on a tax equivalent basis is down 16 basis points to 3.75 percent over the linked quarter ended June 30, 2010, reflecting reduced yields on commercial loans and slowing decreases in the cost of interest-bearing deposits.
• Net charge-offs of $2.4 million are up slightly from the linked quarter. Our provision for loan losses of $2.3 million is down from the previous quarter.
• Non-performing loans were down slightly at $28.7 million over the linked quarter while ORE increased $589,000.
• The Company repurchased 364,000 shares of common stock during the quarter at a cost of $3.1 million. For fiscal 2010 the Company purchased 1,515,923 million shares at a cost of $12.9 million. There are 1,234,167 shares remaining under the current repurchase authorization.

Net Interest Income and Margin

Fourth quarter fiscal 2010 compared with fourth quarter fiscal 2009

Net interest income was $23.3 million for the fourth quarter of fiscal 2010, an $853,000 increase from the same quarter of fiscal 2009 as funding costs declined at a greater pace than interest income. The net interest margin on a tax-equivalent basis was 3.75 percent for the fourth quarter of fiscal 2010, compared to 3.71 percent for the same period a year ago. The tax-equivalent yield on investments decreased 71 basis points and loan yields were down 11 basis points compared to the fourth fiscal quarter in 2009. As a result, the yield on interest-earning assets declined 30 basis points. For the same period, the cost of deposits decreased 32 basis points to 0.34 percent, and the cost of borrowings decreased by 39 basis points to 3.53 percent.

Fourth quarter fiscal 2010 compared with linked quarter ended June 30, 2010

Net interest income for the quarter ended September 30, 2010 decreased $882,000 from the linked quarter ended June 30, 2010. The tax-equivalent net interest margin decreased 16 basis points from 3.91 percent in the linked quarter. The overall yield on loans decreased 20 basis points due primarily to prepayment fees of $600,000 received in the third quarter. The yield on the investment portfolio declined 29 basis points to 3.16 percent. The overall yield on earning assets declined 20 basis points. Interest bearing deposit costs declined 3 basis points reflecting continued discipline in deposit pricing.

Full year Fiscal 2010 compared to 2009

Net interest income declined year- over- year by $536,000, primarily due to lower yields on earning assets of 48 basis points, with no change in the average cost of long-term borrowings, partially offset by declines of 52 basis points in deposit costs.

Noninterest Income

Fourth quarter fiscal 2010 compared with fourth quarter fiscal 2009

Noninterest income totaled $7.7 million for the fiscal fourth quarter, a decrease of $90,000 from the fourth quarter of fiscal 2009. The decrease was due to lower deposit service charges of $442,000 caused by lower overdraft fee income, a bank owned life insurance payment of $736,000 received in fiscal 2009, as well as the decline in the fair value of the interest rate caps. This was offset by increases in gains on sale of loans of $207,000 and securities gains of $1.3 million.

Fourth quarter fiscal 2010 compared with linked quarter ended June 30, 2010

Noninterest income increased on a linked-quarter basis, mainly due to higher securities gains in the fourth quarter of $2.0 million and lower costs related to interest rate cap of $320,000.

Full year fiscal 2010 compared to 2009

Noninterest income was $27.2 million for fiscal 2010 compared to $40.0 million for fiscal 2009. Gains on sales of securities were down $9.9 million and derivative costs were up $1.1 million in fiscal 2010.

Noninterest Expense

Fourth quarter fiscal 2010 compared with fourth quarter fiscal 2009

Noninterest expense increased 10.3 percent when compared to the fourth quarter fiscal 2009. The increase is primarily due to medical and pension expense, higher incentive costs, staffing for new offices in Westchester and Nyack, and professional fees.

Fourth quarter fiscal 2010 compared with the linked quarter ended June 30, 2010

On a quarter-to-quarter basis, noninterest expense increased 3.0 percent due to increases related to medical and pension expense and incentive costs, and occupancy expense, offset in part by declines in advertising and promotion expense.

Full year fiscal 2010 compared to 2009

Noninterest expense increased 3.7% for the year. Declines in FDIC assessments, stock-based compensation, and ATM service charges were offset by increases in employee benefits and incentives, staffing for new offices, occupancy expense primarily associated with the new offices and equipment expenses, and professional fees.

Income Taxes

The effective tax rate for the fiscal 2010 was 25 percent compared to 28 percent for fiscal 2009. The decline is mainly due to the high proportion of tax-free income from municipal securities, BOLI and insurance relative to the total levels of pre-tax income and the set up of a captive insurance company.

Credit Quality

Net charge-offs for the fourth fiscal quarter were $2.4 million compared to $2.2 million in the linked quarter and $2.5 million for the fourth fiscal quarter of 2009. Our provision was $2.25 million, decreasing our allowance for loan losses by $178,000 to $30.8 million, or 108% of non-performing loans at September 30, 2010. This compares to 111 percent at September 30, 2009. Our full year provision is $10.0 million versus $9.2 million in net charge-offs, adding $793,000 to the allowance for loan losses. Provisions for fiscal 2009 were $17.6 million versus net charge-offs of $10.7 million adding $6.9 million to the allowance for loan losses.

Substandard loans at September 30, 2010 were $130.7 million compared to $124.8 million at June 30, 2010, and $89.9 million at September 30, 2009. Special mention loans were $37.9 million compared to $36.9 million at June 30, 2010, and $47.8 million at September 30, 2009. The increase in substandard loans over the linked quarter includes one C&I loan which totaled $3.0 million. Non performing loans were $28.7 million at September 30, 2010 compared to $29.5 million at June 30, 2010 and $27.1 at September 30, 2009.

Key Balance Sheet Changes

• Period-end total deposits increased $60.4 million compared to the previous year. We continue to see an overall increase in transaction accounts, up $65.6 million from the previous year. Business transaction accounts have increased 13.8 percent in this time frame. Decreases were seen in higher rate certificates of deposit and to a lesser extent higher rate municipal deposits. Municipal tax collection deposits (transaction accounts) were $219 million and $201 million in 2010 and 2009, respectively.
• While overall loan demand continues to be sporadic, total loan originations during fiscal 2010 were $524.9 million, an increase of 4.7 percent over $501.2 million for fiscal 2009. Commercial loan originations increased $69.6 million over fiscal 2009 levels or 29 percent. Commercial loan balances increased by $61.1 million or 6.2 percent, while 1-4 family residential mortgages declined by $49.5 million or 10.7 percent as the Bank sold $48.2 million in the secondary market. Securities increased $57.7 million to $934.9 million over September 30, 2009 levels, as the Company continued investing cash generated by deposit inflows into medium term securities, with durations between two and five years.
• Borrowings decreased over September 30, 2009 levels by $62.5 million as FHLBNY advances matured.

Capital and Liquidity

Provident Bank remained well-capitalized at September 30, 2010. Growth in core deposits has provided ample liquidity to reduce overall borrowings and increase available for sale securities. The Bank’s Tier 1 leverage ratio is at 8.43 percent. The Company’s tangible capital as a percent of tangible assets increased 19 basis points to 9.33 percent as of September 30, 2010, while its tangible book value per share increased to $6.96 from $6.60 at September 30, 2009. Total capital increased $3.5 million from September 30, 2009, to $431.0 million at September 30, 2010, due to a net increase of $9.2 million in the Company’s retained earnings, an increase of $1.7 million due to stock based compensation items, a $2.6 million increase in accumulated other comprehensive income, offset by a net change in treasury stock of $10.0 million.

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 35 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 completion of the annual audit of the Company’s financial statements and the filing of the Company’s Annual Report on Form 10-K for the year ended September 30, 2010 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-K to be reflected in the results of the fiscal year, even though the new information was received by management subsequent to the date of this release.

Reconciliation of Adjusted Earnings:
	Quarter Ended												Twelve Months Ended
	September 30,								June 30,				September 30,
	2010				2009				2010				2010			2009
Net Income
Net Income	$	5,403			$	5,076			$	4,756			$	20,492		$	25,861
Securities gains1		(1,746	)			(968	)			(561	)			(4,844	)		(10,735	)
Fair value loss on interest rate caps1		163				-				353				657			-
Net adjusted income	$	3,820			$	4,108			$	4,548			$	16,305		$	15,126
Earnings per common share
Diluted Earnings per common share		0.14			$	0.13				0.12				0.54		$	0.67
Securities gains1		(0.05	)			(0.03	)			(0.01	)			(0.13	)		(0.28	)
Fair value loss on interest rate caps1		-				-				0.01				0.02			-
Diluted adjusted earnings per common share		0.10		*	$	0.11		*		0.11		*	$	0.43		$	0.39
Non-interest income
Total non-interest income	$	7,714			$	7,804			$	5,281			$	27,201		$	39,953
Securities gains		(2,940	)			(1,630	)			(945	)			(8,157	)		(18,076	)
Fair value loss on interest rate caps		275				-				595				1,106			-
Adjusted non interest-income	$	5,049			$	6,174			$	4,931			$	20,150		$	21,877
1After marginal tax effect 40.61%
*Rounding

Provident New York Bancorp and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION
(unaudited, in thousands, except share and per share data)
		September 30,		September 30,
		2010		2009
Assets:
Cash and due from banks	$	90,872	$	160,408
Total securities		934,860		877,197
Loans held for sale		5,890		1,213
Loans:
One- to four-family residential mortgage loans		411,239		460,728
Commercial real estate, commercial business		822,615		789,396
Acquisition, development and construction loans		229,463		201,611
Consumer loans		238,224		251,522
Total loans, gross		1,701,541		1,703,257
Allowance for loan losses		(30,843)		(30,050)
Total loans, net		1,670,698		1,673,207
Federal Home Loan Bank stock, at cost		19,572		23,177
Premises and equipment, net		43,598		40,692
Goodwill		160,861		160,861
Other amortizable intangibles		3,640		5,489
Bank owned life insurance		50,938		49,611
Other assets		40,096		30,038
Total assets	$	3,021,025	$	3,021,893
Liabilities:
Deposits
Retail	$	139,766	$	169,122
Commercial		277,217		236,516
Municipal		77,909		86,596
Personal NOW deposits		139,517		127,595
Business NOW deposits		34,105		36,972
Municipal NOW deposits		241,995		188,074
Total transaction accounts		910,509		844,875
Savings		427,286		357,814
Money market deposits		427,334		384,632
Certificates of deposit		377,573		494,961
Total deposits		2,142,702		2,082,282
Borrowings		363,751		430,628
Borrowings Senior Note		51,496		51,494
Mortgage escrow funds and other liabilities		32,121		30,033
Total liabilities		2,590,070		2,594,437
Stockholders’ equity		430,955		427,456
Total liabilities and stockholders’ equity	$	3,021,025	$	3,021,893
Shares of common stock outstanding at period end		38,262,288		39,547,207
Book value per share	$	11.26	$	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			Twelve Months Ended
	September 30,					June 30,			September 30,
	2010			2009		2010			2010			2009
Interest and dividend income:
Loans and loan fees	$	23,094		$	23,615	$	23,393		$	92,542			97,149
Securities taxable		4,016			4,666		4,716			18,208			25,552
Securities non-taxable		1,941			1,841		2,037			7,774			7,520
Other earning assets		270			360		262			1,250			1,369
		29,321			30,482		30,408			119,774			131,590
Interest expense:
Deposits		1,677			3,190		1,849			8,517			18,375
Borrowings		4,328			4,829		4,361			17,923			19,345
Total interest expense		6,005			8,019		6,210			26,440			37,720
Net interest income		23,316			22,463		24,198			93,334			93,870
Provision for loan losses		2,250			4,500		2,750			10,000			17,600
Net interest income after provision for loan losses		21,066			17,963		21,448			83,334			76,270
Non-interest income:
Deposit fees and service charges		2,695			3,137		2,796			11,228		$	12,393
Net gain on sales of securities		2,940			1,630		945			8,157			18,076
Title insurance fees		273			337		336			1,157			1,005
Bank owned life insurance		491			1,248		503			2,044			2,755
Gain (loss) on sale of premises and equipment		-			-		-			(54	)		517
Gain on sale of loans		422			215		45			867			961
Investment management fees		759			747		756			3,070			2,576
Fair value loss interest rate caps		(275	)		-		(595	)		(1,106	)		-
Other		409			490		495			1,838			1,670
Total non-interest income		7,714			7,804		5,281			27,201			39,953
Non-interest expense:
Compensation and benefits		11,440			9,894		11,061			43,589			39,520
Stock-based compensation plans		338			621		172			1,543			2,942
Occupancy and office operations		3,403			3,195		3,168			13,434			12,802
Advertising and promotion		675			629		1,041			3,252			3,093
Professional fees		1,208			720		1,063			4,019			3,090
Data and check processing		587			563		571			2,285			2,284
Amortization of intangible assets		432			513		452			1,849			2,185
FDIC insurance and regulatory assessments		1,033			752		927			3,675			4,257
ATM/debit card expense		347			563		164			1,601			2,115
Other		1,899			1,909		2,122			7,923			7,899
Total non-interest expense		21,362			19,359		20,741			83,170			80,187
Income before income tax expense		7,418			6,408		5,988			27,365			36,036
Income tax expense		2,015			1,332		1,232			6,873			10,175
Net income	$	5,403		$	5,076	$	4,756		$	20,492		$	25,861
Per common share:
Basic earnings	$	0.14		$	0.13	$	0.12		$	0.54		$	0.67
Diluted earnings		0.14			0.13		0.12			0.54			0.67
Dividends declared		0.06			0.06		0.06			0.24			0.24
Weighted average common shares:
Basic		37,793,860			38,405,947		38,086,535			38,161,180			38,537,881
Diluted		37,793,860			38,532,411		38,086,579			38,185,122			38,705,837

Selected Financial Condition Data:	Three Months Ended
(in thousands except share and per share data)	09/30/10		06/30/10		03/31/10		12/31/09		09/30/09
End of Period
Total assets	$	3,021,025	$	2,963,706	$	2,935,956	$	2,917,789	$	3,021,893
Loans, gross (1)		1,701,541		1,705,737		1,667,428		1,677,032		1,703,257
Securities available for sale		901,012		878,370		888,994		851,028		832,583
Securities held to maturity		33,848		40,452		43,675		46,501		44,614
Bank owned life insurance		50,938		50,447		49,945		49,448		49,611
Goodwill		160,861		160,861		160,861		160,861		160,861
Other amortizable intangibles		3,640		4,072		4,524		4,996		5,489
Other non-earning assets		83,694		85,398		87,811		88,976		70,730
Deposits		2,142,702		1,961,005		2,006,953		1,869,643		2,082,282
Borrowings		415,247		526,912		472,801		584,717		482,122
Equity		430,955		429,115		422,372		420,326		427,456
Other comprehensive income related to investment securities reflected in stockholders' equity		12,621		9,953		3,970		2,342		9,502
Average Balances
Total assets	$	2,919,961	$	2,928,626	$	2,918,953	$	2,886,880	$	2,837,511
Loans, gross:
Real estate- residential mortgage		417,584		427,801		436,967		451,894		465,472
Real estate- commercial mortgage		570,023		552,888		539,679		538,646		548,195
Real estate- Acquisition, Development & Construction		227,165		222,958		212,454		202,864		191,826
Commercial and industrial		243,691		236,275		234,356		239,698		246,590
Consumer loans		239,908		243,484		248,134		252,354		252,667
Loans total (1)		1,698,371		1,683,406		1,671,590		1,685,456		1,704,750
Securities (taxable)		655,794		693,554		694,815		626,734		576,363
Securities (non-taxable)		222,024		219,121		203,153		201,706		192,733
Total earning assets		2,578,024		2,594,264		2,581,554		2,563,965		2,511,431
Non earning assets		341,937		334,362		337,399		322,915		326,080
Non-interest bearing checking		449,666		430,387		419,389		418,961		402,643
Interest bearing NOW accounts		266,950		263,709		298,935		291,844		228,761
Total transaction accounts		716,616		694,096		718,324		710,805		631,404
Savings (including mortgage escrow funds)		424,012		413,315		380,600		372,911		386,943
Money market deposits		421,989		428,612		428,605		397,710		394,718
Certificates of deposit		415,059		467,360		446,301		477,377		494,530
Total deposits and mortgage escrow		1,977,676		2,003,383		1,973,830		1,958,803		1,907,595
Total interest bearing deposits		1,528,010		1,572,996		1,554,441		1,539,842		1,504,952
Borrowings		486,060		481,460		500,226		485,759		488,443
Equity		430,862		424,221		422,129		424,338		423,361
Selected Operating Data:
Condensed Tax Equivalent Income Statement
Interest and dividend income	$	29,321	$	30,408	$	29,627	$	30,418	$	30,482
Tax equivalent adjustment*		1,045		1,098		1,023		1,020		991
Interest expense		6,005		6,210		6,693		7,532		8,019
Net interest income (tax equivalent)		24,361		25,296		23,957		23,906		23,454
Provision for loan losses		2,250		2,750		2,500		2,500		4,500
Net interest income after provision for loan losses		22,111		22,546		21,457		21,406		18,954
Non-interest income		7,714		5,281		6,113		8,093		7,804
Non-interest expense		21,362		20,741		21,173		19,894		19,359
Income before income tax expense		8,463		7,086		6,397		9,605		7,399
Income tax expense (tax equivalent)*		3,060		2,330		2,230		3,439		2,323
Net income	$	5,403	$	4,756	$	4,167	$	6,166	$	5,076
(1) Does not reflect allowance for loan losses of $30,843, $31,021, $30,444, $29,967 and $30,050
* Tax exempt income assumed at a 35% federal rate

		Three Months Ended
		09/30/10		06/30/10		03/31/10			12/31/09			09/30/09
Performance Ratios (annualized)
Return on Average Assets		0.73	%	0.65	%	0.58	%		0.85	%		0.71	%
Return on Average Equity		4.98	%	4.50	%	4.00	%		5.76	%		4.76	%
Non-Interest Income to Average Assets		1.05	%	0.72	%	0.85	%		1.11	%		1.09	%
Non-Interest Expense to Average Assets		2.90	%	2.84	%	2.94	%		2.73	%		2.71	%
Operating Efficiency Adjusted (2)		71.09	%	66.91	%	71.73	%		65.40	%		63.59	%
Analysis of Net Interest Income
Yield on Loans		5.48	%	5.68	%	5.59	%		5.61	%		5.59	%
Yield on Investment Securities- Tax Equivalent		3.16	%	3.45	%	3.45	%		3.67	%		3.87	%
Yield on Earning Assets- Tax Equivalent		4.67	%	4.87	%	4.82	%		4.86	%		4.97	%
Cost of Interest Bearing Deposits		0.44	%	0.47	%	0.57	%		0.72	%		0.84	%
Cost of Borrowings		3.53	%	3.63	%	3.64	%		3.87	%		3.92	%
Cost of Interest Bearing Liabilities		1.18	%	1.21	%	1.32	%		1.48	%		1.60	%
Net Interest Rate Spread- Tax Equivalent Basis		3.49	%	3.66	%	3.49	%		3.39	%		3.38	%
Net Interest Margin- Tax Equivalent Basis		3.75	%	3.91	%	3.76	%		3.70	%		3.71	%
Capital Information Data
Tier 1 Leverage Ratio- Bank Only		8.43	%	8.75	%	8.62	%		8.85	%		8.64	%
Tier 1 Risk-Based Capital- Bank Only		240,230		244,299		239,050			243,955			246,339
Total Risk-Based Capital- Bank Only		265,148		268,996		263,264			268,225			270,807
Tangible Capital Consolidated (3)		266,454		264,182		256,987			254,469			261,106
Tangible Capital as a % of Tangible Assets Consolidated (3)		9.33	%	9.44	%	9.28	%		9.25	%		9.14	%
Shares Outstanding		38,262,288		38,628,477		38,861,477			39,061,035			39,547,207
Shares Repurchased during qrtr(open market)		364,000		233,000		316,723			602,200			86,860
Basic weighted common shares outstanding		37,793,860		38,086,535		38,188,191			38,575,909			38,405,947
Diluted common shares outstanding		37,793,860		38,086,579		38,209,766			38,649,174			38,532,411
Basic Earnings per common share	$	0.14		0.12		0.11		$	0.16		$	0.13
Diluted Earnings per common share		0.14		0.12		0.11			0.16			0.13
Dividends Paid per common share		0.06		0.06		0.06			0.06			0.06
Book Value per common share		11.26		11.11		10.87			10.76			10.81
Tangible Book Value per common share (3)		6.96		6.84		6.61			6.51			6.60
Asset Quality Measurements
Non-performing loans (NPLs): non-accrual	$	21,413		21,985		21,210		$	21,432		$	21,909
Non-performing loans (NPLs): still accruing		5,427		7,069		6,464			5,262			4,560
Troubled Debt Restructures (NPLs): still accruing		1,837		414		416			419			674
Other Real Estate Owned		3,891		3,302		2,466			2,332			1,712
Non-performing assets (NPAs)		32,568		32,770		30,556			29,445			28,855
Net Charge-offs		2,428		2,173		2,023			2,583			2,477
Net Charge-offs as % of average loans (annualized)		0.57	%	0.52	%	0.48	%		0.61	%		0.58	%
NPLs as % of total loans		1.69	%	1.73	%	1.68	%		1.62	%		1.59	%
NPAs as % of total assets		1.08	%	1.11	%	1.04	%		1.01	%		0.95	%
Allowance for loan losses as % of NPLs		108	%	105	%	108	%		111	%		111	%
Allowance for loan losses as % of total loans		1.81	%	1.82	%	1.83	%		1.79	%		1.76	%
(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 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:
		09/30/10		06/30/10		03/31/10			12/31/09			09/30/09
Total Assets	$	3,021,025		2,963,706		2,935,956		$	2,917,789		$	3,021,893
Goodwill and other amortizable intangibles		(164,501	)	(164,933	)	(165,385	)		(165,857	)		(166,350	)
Tangible Assets	$	2,856,524		2,798,773		2,770,571		$	2,751,932		$	2,855,543
Stockholders' equity		430,955		429,115		422,372			420,326			427,456
Goodwill and other amortizable intangibles		(164,501	)	(164,933	)	(165,385	)		(165,857	)		(166,350	)
Tangible Stockholders' equity	$	266,454		264,182		256,987		$	254,469		$	261,106
Outstanding Shares		38,262,288		38,628,477		38,861,477			39,061,035			39,547,207
Tangible capital as a % of tangible assets (consolidated)		9.33	%	9.44	%	9.28	%		9.25	%		9.14	%
Tangible book value per share	$	6.96		6.84		6.61		$	6.51		$	6.60

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