Provident Financial Services, Inc · NYSE:PFS
Provident Financial Services — Friedman Billings Ramsey 11th Annual Investor Conference (November 2004)
18 slides from Provident Financial Services's conference presentation, Nov 30, 2004
Slide 1: Friedman Billings Ramsey 11th Annual Investor Conference
Friedman Billings Ramsey 11th Annual Investor Conference November 30, 2004
Slide 2: 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 3: Characteristics and Milestones
Characteristics and Milestones Rich heritage: Bank founded 1839 Completed full conversion and initial public offering January 15, 2003 Listed on NYSE (PFS) Completed acquisition of First Sentinel Bancorp, Inc. July 14, 2004 Combination creates New Jersey’s 8th largest bank in deposit market share* 3
Slide 4: Key Business Drivers
Key Business Drivers Focused Operating Strategy Range and depth of offerings for Retail and Commercial Clients Dedicated Sales Team Effective Delivery with constant emphasis on Customer Service and Satisfaction Strong franchise in a market with superior demographics 78 branches in 10 New Jersey coun
Slide 5: Key Strategic Initiatives
Key Strategic Initiatives Retention and expansion of customer relationships Rational franchise expansion Achieve 50/50 mix of Commercial (C&I and C.R.E.) and Retail (1-4 Family and Consumer) loan portfolios Consistent commitment to asset quality and risk management Optimize ratio of core deposits to
Slide 6: Financial Overview
Financial Overview 12/31/2002 12/31/2003 9/30/2004 ($ in millions) Assets $ 3,919 $ 4,285 $ 6,540 Loans (net) $ 2,032 $ 2,217 $ 3,710 Deposits $ 3,243(1) $ 2,696 $ 4,092 Equity $ 326 $ 817 $ 1,135 Market Cap N/A $ 1,145 $ 1,304 Net Income ($ in millions) (9 months actual) $ 26.6 $ 18.7 (2) $ 32.2 EP
Slide 7: Geographic Market
Geographic Market First Sentinel acquisition has filled in geographic footprint and accommodates centralized lending operations Morris Somerset Middlesex Mercer Burlington Ocean Monmouth Richmond Union Essex Bergen Bronx Queens Kings Hudson New York Corporate HQ Jersey City, NJ Loan Center Woodbridg
Slide 8: Key Factors for Competitive Success
Key Factors for Competitive Success Continuing evolution from traditional thrift to full-service community bank Emphasis on core deposits (especially Business DDA) to build relationships and manage net interest margin Consistent expansion of commercial lending expertise “Business Advantage” suite of
Slide 9: Deposit Mix
Deposit Mix 12/31/02 Time 32% Convr. Escr.16% Savings, DDA, MMA 52% 12/31/03 Time 35% Savings, DDA, MMA 65% 9/30/04 Time 35% Savings, DDA, MMA 65%
Slide 10: Building Commercial DDA
Building Commercial DDA Increasing Relationships Number of accounts at period end 7,305 8,470 11,284 Sept., 2004 Business Checking Relationships (Non-Interest-Bearing accounts) Growing Balances Outstanding Balance at period-end ($ in millions) $129 $145 $218 Sept., 2004 Business Checking Deposits (N
Slide 11: Loan Mix
Loan Mix 12/31/02 30% CRE 1-4 Family 34% 14% Mtg. Warehouse C & I 9% Consumer 13% 12/31/03 29% CRE 11% C & I 13% Consumer 1-4 Family 47% 9/30/04 26% CRE 9% C & I 14% Consumer 1-4 Family 51%
Slide 12: Portfolio Growth: Commercial & Industrial Loans
Portfolio Growth Commercial & Industrial Loans Outstanding Balance at period-end ($ in millions) $190 $343 $251 Dec-02 Dec-03 Sept. 04 At 9/30/04: 81% total portfolio growth above 12/31/02 77% organic growth 4% growth as result of First Sentinel acquisition
Slide 13: Portfolio Growth: Construction Loans
Portfolio Growth Construction Loans Outstanding Balance at period-end ($ in millions) $96 Dec-02 $99 Dec-03 $232 Sept. 04 At 9/30/04: 142% total portfolio growth above 12/31/02 13% organic growth 129% growth as result of First Sentinel acquisition
Slide 14: Portfolio Growth: Commercial Real Estate Loans
Portfolio Growth Commercial Real Estate Loans Outstanding Balance at period-end ($ in millions) $515 Dec-02 $540 Dec-03 $751 Sept. 04 At 9/30/04: 46% total portfolio growth above 12/31/02 1% organic growth 45% growth as result of First Sentinel acquisition
Slide 15: Constant Focus on Asset Quality
Constant Focus on Asset Quality 0.41% 0.27% 0.13% Sept. 04 Non-performing Loans / Total Loans Consistent commitment to credit quality, regardless of business cycles Consistent underwriting standards & practices Aggressive collection efforts
Slide 16: Improving Operating Efficiency
Improving Operating Efficiency managing overhead achieving economies of scale 3.40% 3.20% 3.00% 2.80% 2.60% 2.40% 2.20% 2.00% 2.90% 2.50% 2.38% * 2003 9mos-9/04 Operating Expense/Total Avg. Assets 70.0% 69.0% 68.0% 67.0% 66.0% 65.0% 64.0% 63.0% 64.5% 62.0% 61.0% 60.0% 66.9% 63.8% * 2003 9mos-9/04 Ef
Slide 17: Capital Management
Capital Management Stock repurchase 1st buyback program approved January, 2004 purchase activity constrained pending acquisition program expanded post-acquisition to total of approx. 4 million (5%) of outstanding shares at 9/30/04, 738 thousand shares left to repurchase next program to be determined
Slide 18: Our Vision
Our Vision Investors seek Financial Performance Which will be Driven by Customers seek Customer-Centricity Which will be Driven by Employees seek Focused & Rewarded Workforce