Provident Financial Services, Inc · NYSE:PFS
Provident Financial Services — Investor Presentation (February 2013)
42 slides from Provident Financial Services's investor presentation, Feb 28, 2013
Slide 1: Provident Financial Services, Inc.
OT PROVIDENT FINANCIAL SERVICES, INC
Slide 2: PROVIDENT FINANCIAL SERVICES, INC
ee PROVIDENT FINANCIAL SERVICES, INC
Slide 3: Slide 3
Slide 4: Forward Looking Statements
Forward Looking Statements Certain statements contained herein are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by reference to a future period or
Slide 5: Slide 5
Slide 6: Why PFS?
Why PFS? Superior Markets Consistent Performance Valuable Deposit Franchise Proven Asset Generator Capable Risk Manager Shareholder Focused
Slide 7: Company Highlights
Company Highlights New Jersey’s oldest state chartered bank Over 75 branch offices Wealth Management and Trust Administration Services Well capitalized under current regulatory standards Ten year history of quarterly cash dividends to stockholders No TARP No dilutive stock offerings No bulk NPA sale
Slide 8: Three Year and One Year Total Return
TENE ERE Three Year Total Return (%) One Year Total Return (%) 58.07 70.00 60.00 50.00 49.00 25.00 1853 20.00 31.97 30.00 20.00 10.00 7.03 15.00 10.00 0.00 (20.00) (20.00) 5.00 0.09 zr22a zrP0 zrany zrane zrady z-494 q132a 1TR0 qrany Tune Trady W424 or2q oTRo orany orsune oridy or-a24 60->2a z1220 z
Slide 9: Quarterly Dividends
$0.35 $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $0.00 woztoz vortoz e0zt0z zortoz rortoz oroz e0rt0z zortoz vortoz pooroz e0ot0z zooroz rootoz os00z 06007 zoso0z os00z os00z 08002 zos00z os00z voL00z 0x02 zoL00z roL00z vos00z 09002 zos00z os00z ‘wosooz 0s002 zosooz vosooz vovo0z eovo0z zovooz rovo0z oe00z
Slide 10: FREESTINNTL ETL
FREESTINNTL ETL
Slide 11: Superstorm Sandy
Superstorm Sandy To date, requests for relief limited to 13 loans totaling $4.9 million Effective disaster contingency plan minimized customer disruption “At risk” loans in designated flood zones in Monmouth, Ocean, and Hudson counties represent < 4% of the total loan portfolio Strong sponsors, prud
Slide 12: 2012: A Record Setting Year
2012: A Record Setting Year Change vs. 2011 Total Assets $7.3 B $186 M 2.6% Loans $4.9 B $251 M 5.4% NIB $864 M $166 M 24.0% Deposits $5.4 B $272 M 5.3%
Slide 13: Slide 13
Slide 14: 2012: A Record Setting Year
2012: A Record Setting Year Change vs. 2011 Net Int Inc $217 M $1 M 0.6% Non Int Inc $44 M $11 M 34.0% Net Revenue $261 M $12 M 5.0%
Slide 15: Slide 15
Slide 16: 2012: A Record Setting Year
2012: A Record Setting Year Change vs. 2011 Net Income $67 M $10 M 17.3% EPS $1.18 $0.17 16.8% ROAA 0.94% 0.11% 13.3% ROAE 6.88% 0.79% 13.0% ROATE 10.88% 1.07% 10.9%
Slide 17: TEN SARC
= TEN SARC
Slide 18: Asset Quality Quarter Trend
Asset Quality 5 Quarter Trend 4 Q 2011 1 Q 2012 2 Q 2012 3 Q 2012 4 Q 2012 1.91% 1.89% 1.81% 1.65% 1.53% $135,351 $134,783 $129,141 $119,586 $111,463 NPAs NPAs/Assets
Slide 19: Asset Quality Quarter Trend
Asset Quality 5 Quarter Trend
Slide 20: ALL Coverage
ALL Coverage Q4 2012 Q3 2012 Q4 2011 ALL/Loans 1.43% 1.46% 1.60% ALL/NPLs 71.07% 66.50% 60.67% ALL/Ann. NCOs 4.50 yrs 3.14 yrs 3.53 yrs
Slide 21: A Longer View: Structural Gains - Asset Composition
A Longer View: Structural Gains Asset Composition $6.8 B $7.3 B 64% 25% 11% 67% 23% 10% Loans Investments Other
Slide 22: A Longer View: Structural Gains - Loan Composition
A Longer View: Structural Gains Loan Composition Commercial $2.3B 53% Consumer $2.1B 47% Commercial $3.1B 62% Consumer $1.8B 38%
Slide 23: A Longer View: Structural Gains - Direct vs. Indirect Lending
A Longer View: Structural Gains Direct vs. Indirect Lending 84.0% 11.0% 2.2% 1.8% 1.0% 89.7% 8.4% 0.6% 0.8% 0.5% Direct Purchased Residential SNCs Indirect Marine Indirect Auto / Other
Slide 24: Loan Portfolio – 12/31/12
Loan Portfolio – 12/31/12 C&I 18% Total Loans: $4.9 Billion Average Loan Yield: 4.58% 1-4 Res. 26% CRE 27% Multi- family 15% Constr. 2% Consumer 12%
Slide 25: Loan Portfolio by Type 2011 vs 2012
Residential CRE Multi-Family Construction C&l Consumer - 2010 ™ 2011 m2012
Slide 26: Loan Originations Trend
Loan Originations Trend Two years average increase between 2010-2012 10.63% Average Increase 18.33% Average Increase 31.71% Average Increase 40.36% Average Increase 17.17% Average Increase 52.51% Average Increase
Slide 27: Commercial Real Estate – 12/31/12
Commercial Real Estate – 12/31/12 Industrial 13% Multi-Family 35% Retail 23% Office 14% Mixed Used 5% Special Use Property 4% Hotel 3% Land 1% Residential 1% Other 1%
Slide 28: Investment Portfolio – 12/31/12
Investment Portfolio – 12/31/12 WAL AFS: 3.6 yrs HTM: 4.3 yrs Combined: 3.8 yrs Municipal Bonds 22% Corporate Notes - Fixed 0% Agency Notes - Fixed 6% Agency MBS - Fixed 33% Agency MBS - ARMs 6% Agency CMO - Fixed 30% Corporate CMO - Fixed 3%
Slide 29: a a a
a a a
Slide 30: A Longer View: Structural Gains - Funding
A Longer View: Structural Gains 8% 13% Funding / Earning Assets 25% 16% 47% Time Deposits Borrowings IB Core Deposits NIB Deposits 15% 12% 55%
Slide 31: Slide 31
Slide 32: A Longer View: Structural Gains - Non-Interest Income
A Longer View: Structural Gains Non-Interest Income/ Net Revenue: 2009 = $31.5M, 14.8% 2012 = $43.6M, 16.7% -2.3% -0.8% -0.5% -0.1% 1.5% 2.0% 2.1% Deposit fees ($3.2M) Equity fund income ($1.7M) BOLI ($0.1M) Other $2.0M Loan fees $4.0M Securities gains $5.1M Wealth fees & Annuity Sales $6.1M
Slide 33: TET ANH SAREE
= TET ANH SAREE
Slide 34: A Longer View: Structural Gains - Capacity Utilization
A Longer View: Structural Gains Capacity Utilization *Excludes impact of $152.5 million of Goodwill impairment in 2009. Change Revenue $260,950 $212,469 $48,481 Eff. Eff. Non-Interest Expense * Compensation & benefits 80,874 30.99% 68,735 32.35% -1.36% Net occupancy expense 20,487 7.85% 20,170 9.49%
Slide 35: Slide 35
Slide 36: A Longer View: Structural Gains
A Longer View: Structural Gains *Excludes impact of $152.5 million of Goodwill impairment in 2009. NIM 3.38% 3.06% Loans/Deposits 90.4% 89.5% Net Revenues $261M $212M Provision $16M $30M Net Income * $67M $31M
Slide 37: Slide 37
Slide 38: Capital Ratios – 12/31/12
Capital Ratios – 12/31/12 Provident Consolidated Bank PFS TCE - 9.00% Tier 1 Leverage 7.80% 8.93% Tier 1 RBC 11.08% 12.68% Total RBC 12.33% 13.93%
Slide 39: Slide 39
Slide 40: Opportunities
Opportunities Capital flexibility Recent additions to lending teams in Middle Market / Consumer / Healthcare / CRE Technology enhancements Sandy stimulus Accelerating economic recovery
Slide 41: Provident Financial Services, Inc.
LA PROVIDENT FINANCIAL SERVICES, INC.
Slide 42: Provident Financial Services, Inc.
== PROVIDENT FINANCIAL SERVICES, INC.
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