Provident Financial Services, Inc · NYSE:PFS
Provident Financial Services — Sandler O'Neill & Partners 2005 Financial Services Conference
28 slides from Provident Financial Services's conference presentation, Nov 17, 2005
Slide 1: Sandler O'Neill 2005 Financial Services Conference
Sandler O’Neill & Partners, L.P. Exhibit 99.1 Sandler O’Neill & Partners, L.P. Sandler O’Neill & Partners, L.P. November 17, 2005 November 17, 2005 November 17, 2005 2005 Financial Services Conference 2005 Financial Services Conference
Slide 2: Forward Looking Statement
Forward Looking Statement Certain statements contained herein are "forward-looking statements" within the meaning of Section 27A of the Securities Act of and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by reference to a future period or perio
Slide 3: Company Profile at 9/30/05
Company Profile at 9/30/05 Company Profile at 9/30/05 Company Profile at 9/30/05 • • NYSE Symbol: PFS NYSE Symbol: PFS • • Market Capitalization: $1.26 billion Market Capitalization: $1.26 billion • • Assets: $6.18 billion Assets: $6.18 billion • • Headquarters: Jersey City, New Jersey Headquarters:
Slide 4: Company History
Company History Company History Company History • • Founded: February, 1839 Founded: February, 1839 – oldest bank chartered in New Jersey • • IPO (Full Conversion): January, 2003 IPO (Full Conversion): January, 2003 – raised $587 million in net new capital • • Acquired First Sentinel Bancorp, Inc. A
Slide 5: Company Strengths
Company Strengths Company Strengths Company Strengths • • Solid Franchise in Strong Markets Solid Franchise in Strong Markets • • Sufficient Capital for Strategic Deployment Sufficient Capital for Strategic Deployment • • Disciplined Approach to Expansion Disciplined Approach to Expansion • • Focus
Slide 6: Significant Presence in Strong Markets
Significant Presence in Strong Markets Significant Presence in Strong Markets Significant Presence in Strong Markets • • 8th largest share of New Jersey deposit market* 8th largest share of New Jersey deposit market* • • 4th largest of any bank headquartered in-state* 4th largest of any bank headqua
Slide 7: Branches as of 9/30/05
76 Branches as of 9/30/05 76 Branches as of 9/30/05 76 Branches as of 9/30/05 Source: SNL Financial
Slide 8: Provident Financial Services, Inc.
==) PROVIDENT FINANCIAL SERVICES, INC,
Slide 9: Slide 9
Slide 10: Financial Highlights
Financial Highlights Financial Highlights Financial Highlights (Dollars in thousands) INCOME STATEMENT: 9/30/05 9/30/04 Change Net income $43,728 $32,218 35.73% Diluted earnings per share $0.65 $0.54 20.37% Return on equity 5.28% 4.84% 9.09% Return on assets 0.93% 0.88% 5.68% Net interest margin 3.3
Slide 11: Provident Financial Services, Inc.
==) PROVIDENT FINANCIAL SERVICES, INC,
Slide 12: Slide 12
Slide 13: Slide 13
Slide 14: Financial Highlights
Financial Highlights (Dollars in millions) BALANCE SHEET: 9/30/05 12/31/04 Change Total assets $6,176 $6,433 -4.00% Total loans $3,682 $3,707 -0.67% Total deposits $3,964 $4,050 -2.12% Total investments $1,635 $1,900 -13.95% Total borrowings $1,048 $1,193 -12.15% Financial Highlights Financial Highl
Slide 15: Provident Financial Services, Inc.
==) PROVIDENT FINANCIAL SERVICES, INC,
Slide 16: Slide 16
Slide 17: Slide 17
Slide 18: Financial Highlights
Financial Highlights ASSET QUALITY: 9/30/05 9/30/04 Non-performing loans to total loans 0.18% 0.13% Non-performing assets to total assets 0.11% 0.08% Allowance for loan losses to total loans 0.89% 0.90% Financial Highlights Financial Highlights
Slide 19: Strategic Objectives
Strategic Objectives Strategic Objectives Strategic Objectives • • Optimize Net Interest Margin Optimize Net Interest Margin – Maintain Low-Cost Funding Base – Optimize % of Core Deposits – Optimize Loans as % of Assets • • Improve Operating Efficiency Improve Operating Efficiency • • Disciplined De
Slide 20: Striving to Maintain Low Cost Funding Base
12/31/04 Striving to Maintain Low Cost Funding Base 9/30/05 CD's> $100K 6% Other Time Deposits 28% Interest DDA 12% Non-Interest DDA 12% Savings / MMA 42% Striving to Maintain Low Cost Funding Base Striving to Maintain Low Cost Funding Base Cost of Interest-Bearing Liabilities (Trailing 5 Quarters)
Slide 21: Striving to Optimize Loan Portfolio
12/31/04 9/30/05 Striving to Optimize Loan Portfolio Residential Mortgage 50% Consumer 14% Construction 6% Commercial R.E. 21% C & I 9% Commercial R.E. 20% Construction 6% C & I 10% Consumer 15% Residential Mortgage 49% Striving to Optimize Loan Portfolio (Trailing 5 Quarters) 67.74% 66.68% 65.80% 6
Slide 22: Optimizing Net Interest Margin
Optimizing Net Interest Margin Optimizing Net Interest Margin Optimizing Net Interest Margin 3.40% 3.35% 3.24% 3.31% 3.34% 3.38% 3.38% 3.43% 3.15% 3.14% 3.10% 3.15% 3.20% 3.25% 3.30% 3.35% 3.40% 3.45% 3Q04 4Q04 1Q05 2Q05 3Q05 PFS SNL Bank & Thrift Index Minimizing Compression Above Industry Trends M
Slide 23: Positive Trend in Cost Management Contributes to Positive Trend in Operating Efficiency
Positive Trend in Cost Management Contributes to Positive Trend in Operating Efficiency Efficiency Ratio (Trailing 5 Quarters) 62.08% 57.06% 58.52% 62.29% 58.83% 55.00% 57.00% 59.00% 61.00% 63.00% 65.00% 3Q04 4Q04 1Q05 2Q05 3Q05 Non-Interest Expense / Average Assets (Trailing 5 Quarters) 2.12% 1.93%
Slide 24: and Plays an Increasing Role in Earnings Momentum
and Plays an Increasing Role in Earnings Momentum Earnings Performance (Trailing 5 Quarters) $0.23 $0.21 $0.22 $0.24 $0.19 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 3Q04 4Q04 1Q05 2Q05 3Q05 $0.00 $0.05 $0.10 $0.15 $0.20 $0.25 Earnings EPS (diluted) and Plays an Increasin
Slide 25: Disciplined Capital Management to Build Stockholder Value
Disciplined Capital Management to Build Stockholder Value Disciplined Capital Management to Build Stockholder Value Disciplined Capital Management to Build Stockholder Value • • Stock Repurchase Stock Repurchase – Completed first program 4th Quarter 2004; • approximately 4.0 million shares repurchas
Slide 26: Disciplined Capital Management - Dividends
Disciplined Capital Management - Dividends Disciplined Capital Management - Dividends $0.04 $0.05 $0.06 $0.07 $0.08 $0.09 $0.00 $0.02 $0.04 $0.06 $0.08 $0.10 Apr-03 July-03 Jan-04 Jan-05 Apr-05 Oct-05 Cash Dividend Declared Current Dividend Yield = 2.05% (based on 10/31/05 share price of $17.60) • •
Slide 27: Disciplined Capital Management - Expansion
Disciplined Capital Management - Expansion Disciplined Capital Management - Expansion Disciplined Capital Management - Expansion • • Continue to seek out acquisition opportunities Continue to seek out acquisition opportunities – Must add long-term stockholder value – Focus on existing footprint and
Slide 28: Our Business Philosophy
Our Business Philosophy Investors Financial Performance Which will be Driven by Customers seek Customer-Centricity Employees seek Which will be Driven by Focused & Rewarded Workforce Our Business Philosophy Our Business Philosophy seek
Provident Financial Services — Sandler O'Neill & Partners 2005 Financial Services Conference on 6ix