Provident Financial Services, Inc · NYSE:PFS
Provident Financial Services — Investor Conference, December 2, 2003
20 slides from Provident Financial Services's conference presentation, Dec 2, 2003
Slide 1: Investor Presentation December 2, 2003
1 INVESTOR PRESENTATION DECEMBER 2, 2003
Slide 2: Forward-Looking Statements
2 The Company undertakes no were Forward-Looking Statements Statements contained in this presentation which are not historical facts are forward-looking statements, as that term is defined in the Private Such forward-looking statements are subject to risks and uncertainties which could cause Access
Slide 3: The Company
• 3 • Bank 1.92 • the aggregate and Bank is Provident Inc. an cash The Company Provident issued to Provident Inc. contributed stock raised. The • Services, The to Holding • for Services, and common proceeds by 2003: shares its net distributed retained of in Financial Company 15, Financial million Ja
Slide 4: Our Company Profile
4 (as of September 30, 2003) Full Range of Retail and Commercial Deposit Products Retail and Commercial Lending Trust Services and Investment Services $4.2 billion in Assets $2.7 billion in Deposits $2.1 billion in Loans 54 branches in 10 counties in northern and central New Jersey A full-service ba
Slide 5: Tradition, Commitment, Focus: Our Strengths
Tradition, Commitment, Focus 5 New Jersey’s Oldest Bank; Established 1839 Tradition of Safe & Sound Management – Commitment to Profitable Growth Commitment to Prudently Deploy Capital Commitment to Maintain Asset Quality Unwavering Customer Focus Our Strengths: • • • • •
Slide 6: Strategic Goals
• 6 • Culture Compromising accelerating with Sales without line Awareness Management Income in Brand Expenses Initiatives Sheet Interest Goals Share Increase Relationship Balance Pay-for-Performance Net Operating Growth and Strategic the Market Customer Quality Grow Grow Sustain Reinforce Maximize A
Slide 7: Our Financial Performance
292.1 24.1 3.79% 7 2001 2,869.7 1,994.6 2,341.7 $ $ $ $ $ 2002 3,919.2 2,031.9 3,243.3 326.0 26.6 3.98% $ $ $ $ $ 2003* 4,171.9 2,092.4 2,689.9 833.8 10.5** 3.33% $ $ $ $ $ for the nine months ended September 30, 2003 includes $15.6 million net of tax one-time contribution to The Provident Bank Foun
Slide 8: Our Business Drivers
8 Maximize Product Penetration among Current Households Continually Reduce Attrition Increase New Customer Acquisition Integrate Consistent Sales Process and Customer Treatment across all Delivery Channels Assess Merger & Acquisition Opportunities Continue De Novo Branching Maintain Diversified Loan
Slide 9: Loan Portfolio Diversification
9 September, 2003 2002 2001 to improve asset yields to reduce exposure to interest rate risk 2000 Residential Real Estate and Consumer Loans Commercial Real Estate, Mortgage Warehouse and Business Loans Loan Portfolio Diversification 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%
Slide 10: Building the Commercial Loan Portfolio
10 3Q 2003 Commercial Real Estate 2002 2001 2000 Building the Commercial Loan Portfolio $ in millions 800 600 400 200 0 Commercial & Industrial
Slide 11: Asset Redeployment Strategy
• 11 • between Portfolio been have Family purchased Loan 1-4 or balance Credit Loans on even of Retail focused originated Strategy Commercial Lines favor either and Warehouse will Redeployment Strategy—Maintain Portfolio all Strategy Mortgages Diversification Loan Asset Residential Long-term Retail
Slide 12: Branch Map
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Slide 13: Our Deposit Market Share
13 5.74% 8.48% = 16.72% ongoing Strategic Focus = = Core Deposits are Provident’s Core Deposits Provident • Total Deposits Provident Total Deposits all New Jersey Institutions As of June 30, 2003: 13th of 135 FDIC-Insured Institutions in Provident’s 10-County Market Area Increase for 12 Months ended
Slide 14: Core Deposit Emphasis
14 September, 2003 2002 Core Deposits 2001 Time Deposits to expand customer relationships to effectively manage interest rate expense 2000 Core Deposit Emphasis 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%
Slide 15: Building Core Customer Deposit Balances
15 3Q 03 Savings Deposits 2002 2001 2000 Demand Deposits Building Core Customer Deposit Balances $ in millions 1000 800 600 400 200 0
Slide 16: Net Interest Income Growth
16 9 Mos. 2003 Net Interest Income 9 Mos. 2002 2002 Interest Expense 2001 2000 Interest Income Dual Strategy of Loan Diversification and Core Deposit Emphasis has resulted in Net Interest Income Growth $ in millions 200 150 100 50 0
Slide 17: Commitment to Asset Quality
17 September, 2003 2002 2001 % of Non-performing Loans to Total Loans 2000 Commitment to Asset Quality 0.50% 0.40% 0.30% 0.20% 0.10% 0.00%
Slide 18: Capital Management Strategies for EPS Growth
18 Buyback strategy in development Declaration of Cash Dividend after first quarter of operation as a public company Stock buy-backs commenced in 2003 to fund stockholder-approved benefit plans Corporate stock buy-backs available for 2004 – Continuing assessment of merger opportunities Leverage stra
Slide 19: Our Vision
19 Driven by Focused & Rewarded Workforce Customer-Centricity Which will be Financial Performance Driven by seek Which will be seek Employees seek Customers Our Vision Investors
Slide 20: Provident Financial Services, Inc.
>, PROVIDENT FINANCIAL SERVICES, INC:
Provident Financial Services — Investor Conference, December 2, 2003 on 6ix