Provident New York Raises $46 Million for Expansion in NYC

Provident New York Bancorp (PBNY) in Montebello has raised roughly $46 million to help fuel its expansion in the New York City area.

The $3.2 billion-asset company sold roughly 6.3 million shares of common stock at $7.35 per share to several institutional investors, Provident said Tuesday. The price was about a 3.5% discount to the 30-day-volume, weighted-stock-price average at the time the offering was determined, Provident said.

The funds will be used for general corporate purposes, including a capital contribution to its bank, Provident Bank, and to support strategic initiatives.

The capital will "allow us to continue our growth in the very attractive greater New York metropolitan area," Jack Kopnisky, president and chief executive, said in a news release.

Within the last year, Provident has been growing rapidly in the New York City market. Last fall it hired David Bagatelle, a banker with extensive experience in the Big Apple, to lead its expansion there. It has also agreed to buy the $450 million-asset Gotham Bank of New York and has brought on six teams of lenders to serve the New York City area since January.