Sterne Agee Reiterates Neutral Rating on Provident New York Bancorp on Sterling Acquisition

In a report published Friday, Sterne Agee analyst Matthew Kelley reiterated a Neutral rating on Provident New York Bancorp PBNY. In the report, Kelley noted, “Similar to our initial view, we are net positive on the Provident/Sterling (STL) combination announced yesterday. First, we thought pricing was fair relative to recent metro NYC acquisitions. Second, it was an (upside) surprise to see PBNY win STL in what appears to be a negotiated (vs. shopped) transaction. Third, while the TBV earn-back is more like 7 years on a stand alone basis, the significant improvements in ROTCE, and balance sheet/earnings composition is worth the trade, in our view.” Provident New York Bancorp closed on Thursday at $8.78.