Another quarterly report, another dividend for shareholders.
Following the release of its second-quarter report for fiscal 2007, Baltimore-based Provident Bank announced a dividend increase for the 55th consecutive quarter. Emphasizing a new corporate efficiency program called “Winning the Provident Way,” the bank reported a 4 percent decrease in non-interest expenses compared with the first quarter and a drop of 2 percent from the same time a year earlier.
“We feel very good. Fundamentally it?s a sound quarter,” said Kevin Byrnes, vice president and chief operating officer of Provident Bank. “We have been working on an efficiency initiative, and the numbers reflect that, as it?s on track and our year-over-year expenses are basically flat.”
For the quarter, Provident also cited net incomes of $15.5 million, down from the mark of $20 million reported during the same time last year. Citing industrywide shifts in depositor practices as a cause for the drop, Provident also pointed to a $3.5 million charge-off of a commercial loan as a factor.
“We would say everyone is having a hard time, and we are doing better on a relative basis with the headwinds we have right now,” Byrnes said.
PNC sees jump in net income
Things are looking up for PNC.
A major player in the financing market in the Baltimore region, Pittsburgh-based PNC Financial Services Group announced a net income of $423 million for the second quarter, an increase of more than $40 million compared with the same quarter a year ago.
“Our businesses delivered solid results in the second quarter, while private equity and trading revenues were weaker,” James E. Rohr, PNC chairman and chief executive officer, said in a statement. “We generated qualityrevenue growth and effectively managed our expenses while maintaining excellent credit quality. PNC?s diversified business mix, combined with strong risk management and capital flexibility, positions us well for what will continue to be a challenging environment.”
For the quarter, PNC also saw a boost in retail banking, earning $227 million, a jump over last year?s mark of $185 million and the first quarter?s $201 million.
» As of Thursday, shares of Provident Bank were trading at $31.30, down 36 cents or 1.14 percent.
» Shares of PNC Financial Services Group were trading at $71.34, down $1.87 or 2.57 percent.
