Provident Financial Services, Inc · NYSE:PFS
Provident Financial Services — Investor Presentation (September 2004)
21 slides from Provident Financial Services's investor presentation, Sep 27, 2004
Slide 1: Investor Presentations September 2004
Exhibit 99 INVESTOR PRESENTATIONS September 2004
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about (i) the benefits of the merger between Provident Financial S
Slide 3: Our Company Profile
Our Company Profile (as of June 30, 2004) $4.3 billion in Assets $2.7 billion in Deposits $2.4 billion in Loans 54 branches in 10 counties in northern and central New Jersey A full-service bank: Full Range of Retail and Commercial Deposit Products Retail and Commercial Lending Trust Services and Inv
Slide 4: Our Company Profile
Our Company Profile On July 14, 2004, we completed the acquisition of First Sentinel Bancorp, Inc. and the merger of its wholly-owned subsidiary First Savings Bank, with and into The Provident Bank
Slide 5: Our Current Market: Solidifying Provident's Franchise in Central NJ
Our Current Market: Solidifying Provident’s Franchise in Central NJ Morris Somerset Middlesex Mercer Burlington Union Essex Bergen Hudson Richmond Monmouth Ocean New York Bronx Queens Kings Provident Branches First Sentinel Branches
Slide 6: Our Strengths: Tradition, Commitment, Focus
OUR STRENGTHS: Tradition, Commitment, Focus Tradition of Safe & Sound Management New Jersey’s Oldest Bank; Established 1839 Commitment to Profitable Growth Commitment to Prudently Deploy Capital Commitment to Maintain Asset Quality Unwavering Customer Focus
Slide 7: Our Strategic Initiatives
Our Strategic Initiatives Grow the Balance Sheet and Market Share M&A Activity, De Novo Branching, and Organic Growth Sustain and Increase Brand Awareness Customer Relationship Management Maximize Net Interest Income without Compromising Asset Quality Focus on Accelerating Revenue Growth and Slowing
Slide 8: Our Business Drivers
Our Business Drivers Reinforce Pay-for-Performance Sales Culture Maintain Diversified Loan Portfolio Composition Continue to Increase proportion of Core Deposits to Total Deposits Customer Relationship Management Process: Maximize Product Penetration among Current Households Continually Reduce Attri
Slide 9: Our Financial Performance
Our Financial Performance ($in millions) 6/30/04 3/31/04 12/31/03 Assets $4,296.3 $4,258.2 $4,284.9 Loans, net $2,360.7 $2,255.4 $2,216.7 Deposits $2,743.9 $2,691.9 $2,696.0 Total Stockholders’ Equity $816.3 $823.2 $817.1 Net Income $8.6 $10.3 $18.7* Net Interest Margin 3.28% 3.50% 3.35% * includes
Slide 10: Loan Diversification Strategy
Loan Diversification Strategy Long-term Strategy—Maintain even balance between Retail Loan Portfolio and Commercial Loan Portfolio. Substantially all Warehouse Lines of Credit have been sold. Assets re-deployed into 1-4 family residential loans. Near-term Strategy will favor Retail Loans.
Slide 11: Loan Portfolio Diversification
Loan Portfolio Diversification to improve asset yields to reduce exposure to interest rate risk 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 60.24% 39.76% 58.01% 41.69% 58.37% 41.27% 3/31/2004 6/30/04 Residential Real Estate and Consumer Loans Commercial Real Estate, Mortgage Warehouse and
Slide 12: Building the Commercial Loan Portfolio
Building the Commercial Loan Portfolio $ in millions 700 600 300 200 246.6 638.7 296.4 652.3 328.2 654.7 3/31/2004 6/30/2004 Commercial & Industrial Commercial Real Estate
Slide 13: Core Deposit Emphasis
Core Deposit Emphasis to expand customer relationships to effectively manage interest rate expense 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 35.00% 65.00% Dec. 2003 34.91% 65.09% 3/31/2004 33.93% 66.07% 6/30/2004 Time Deposits Core Deposits
Slide 14: Building Core Customer Deposit Balances
Building Core Customer Deposit Balances $ in millions 1000 900 800 700 600 500 400 300 200 100 0 Dec. 2003 987.9 3/31/2004 769.2 982.7 6/30/2004 815.5 997.3 Demand Deposits Savings Deposits
Slide 15: Dual Strategy Resulting in Net Interest Income Growth
Dual Strategy of Loan Diversification and Core Deposit Emphasis has resulted in Net Interest Income Growth $ in millions 140 120 100 80 60 40 20 0 Dec. 2003 3/31/2004 6/30/2004 Interest Income Interest Expense Net Interest Income
Slide 16: Commitment to Asset Quality
Commitment to Asset Quality 0.30% 0.25% 0.20% 0.15% 0.10% 0.05% 0.00% 0.27% Dec. 2003 0.19% 3/31/2004 0.17% 6/30/2004 % of Non-performing Loans to Total Loans
Slide 17: Capital Management
Capital Management Strategies for Earnings per Share Growth Declaration of Cash Dividend after first quarter of operation as a public company. Second increase recently announced. Stock buy-backs commenced in 2003 to fund stockholder-approved benefit plans Corporate stock buy-backs approved for 2004
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
Slide 19: Strategic Growth in New Jersey's Most Attractive Markets
Strategic Growth in New Jersey’s Most Attractive Markets
Slide 20: Summary of Significant Terms
Summary of Significant Terms $22.25 per share Value per First Sentinel Share: 60% stock / 40% cash Consideration: Fixed at 1.092 Provident shares for each First Sentinel share(1) Exchange Ratio: Tax-free exchange with election mechanism Transaction Structure: Approximately 20% of First Sentinel’s ex
Slide 21: Summary
Summary Adds highly attractive franchise in one of New Jersey’s best banking markets Highly accretive to EPS with solid internal rate of return In-market transaction with conservative cost savings assumptions First Sentinel possesses strong fundamentals Management additive Effective deployment of co
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