Provident Financial Services, Inc · NYSE:PFS
Provident Financial Services — Shareholder Meeting (April 2019)
18 slides from Provident Financial Services's shareholder meeting presentation, Apr 25, 2019
Slide 1: Annual Meeting of Stockholders April 25, 2019
ANNUAL MEETING OF STOCKHOLDERS APRIL 25, 2019 RENAISSANCE WOODBRIDGE HOTEL 1
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 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: Record Profitability
RECORD PROFITABILITY Dollars in Millions, except per share data 2018 2017 Interest Income $360 $324 Net Interest Income $301 $278 Non-Interest Income $59 $56 Revenue +8% $359 $334 Overhead Ratio* 1.97% 1.97% Efficiency Ratio* 53.36% 56.25% +26% Net Income $118 $94 Diluted EPS $1.82 $1.45 *Non-GAAP f
Slide 4: Record Profitability
RECORD PROFITABILITY Dollars in Millions 2018 2017 Return on Average Assets 1.22% 0.99% Return on Average Common Equity 8.93% 7.28% Return on Avg. Tangible Common Equity* 13.07% 10.82% Pre-tax Pre-provision Earnings* +15% $168 $146 *Non-GAAP financial measure. Please refer to the reconciliation of G
Slide 5: Asset Quality
ASSET QUALITY Dollars in Millions 2018 2017 Non-performing Loans $26 $35 Non-performing Loans / Loans 35 bps 48 bps Loan Delinquencies / Loans 71 bps 72 bps Allowance for Loan Losses / Loans 77 bps 82 bps Allowance for Loan Losses / 216% 172% Non-performing Loans 5
Slide 6: Net Interest Spread & Margin Management
NET INTEREST SPREAD & MARGIN MANAGEMENT (%) Q4 '17 Q1 '18 Q2 '18 Q3 '18 Q4 '18 Earning 4.19 3.97 4.07 +41 bps Asset Yield 3.78 3.89 Interest-bearing 0.97 Liability Cost 0.68 0.76 0.82 0.90 +29 bps Total Deposit 0.46 0.55 +23 bps Cost 0.32 0.37 0.41 Net Interest 3.22 3.15 3.17 +12 bps Spread 3.10 3.1
Slide 7: Beacon Trust
BEACON TRUST Dollars in Millions 2018 2017 Average Assets Under Management $2,317 $2,263 Revenue $18.4 $18.0 Net Income $4.5 $3.3 7
Slide 8: Value Creation
VALUE CREATION Tangible Book Value per Share* 12/31/18: $14.18 Dividends Paid: 0.82 $15.00 Tangible Book Value per Share* 12/31/17: 13.20 Increase: $1.80 13.6% *Non-GAAP financial measure. Please refer to the reconciliation of GAAP to Non-GAAP financial measures at the end of this presentation. 8
Slide 9: How We Measure Success
HOW WE MEASURE SUCCESS 2013 2014 2015 2016 2017 2018 $1.82 8% Diluted Earnings CAGR $1.45 per Share $1.33 $1.38 $1.23 $1.22 $14.18 5% Tangible Book $13.20 $12.54 Value per $11.75 CAGR Share $10.92 $11.40 Regular $0.21 $0.19 $0.20 +40% Quarterly Cash $0.17 Dividend per $0.15 $0.15 Share (1) 3.4% 3.4%
Slide 10: Enhancing the Customer Experience: Online / Mobile Banking Replacement
ENHANCING THE CUSTOMER EXPERIENCE ONLINE / MOBILE BANKING REPLACEMENT Improved customer experience through more intuitive, seamless and responsive system Expanded functionality and usability Spanish version supported Sophisticated fraud detection and prevention tools 10
Slide 11: Enhancing the Customer Experience: Online Account Opening System Replacement
ENHANCING THE CUSTOMER EXPERIENCE ONLINE ACCOUNT OPENING SYSTEM REPLACEMENT Better designed for smartphone and tablet users Improved time to open account and enhanced pull-through rates Optionality to expand Provident’s footprint 11
Slide 12: Enhancing the Customer Experience: Online Small Business Loan Product
ENHANCING THE CUSTOMER EXPERIENCE ONLINE SMALL BUSINESS LOAN PRODUCT Offered through Fundation® Launched in late February 2019 with great demand and early success Source of fee income initially as Fundation® assumes all credit risk Future opportunity for balance sheet loan production 12
Slide 13: Enhancing the Customer Experience: Investing in Data Analytics
ENHANCING THE CUSTOMER EXPERIENCE INVESTING IN DATA ANALYTICS Mining sources of data to improve overall view of the customer Development and measurement of key performance indicators to better manage our business Artificial intelligence and predictive customer behavior on the roadmap 13
Slide 14: Enhancing the Employee Experience
ENHANCING THE EMPLOYEE EXPERIENCE “HIGH-TECH STILL REQUIRES HIGH-TOUCH” Minimum hourly wage increased to $15 in July 2018 Launched “Student Loan Pay-down” Program in July 2018 Expanded tuition reimbursement program to include relevant Master’s Degree programs Support of community and charity service
Slide 15: Progress on Our Strategic Pillars
PROGRESS ON OUR STRATEGIC PILLARS Leveraging customer relationships across all our lines of business Proactively identifying customer needs to retain and grow profitable relationships Developing a data analytics capability to enable quicker and more fact-based business decisions Exploring the opport
Slide 16: Reconciliation of GAAP to Non-GAAP Financial Measures
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES Note: The Company has presented the following non-GAAP (Generally Accepted Accounting Principles) financial measures because it believes that these measures provide useful and comparative information to assess trends in the Company’s results of o
Slide 17: Provident Financial Services, Inc.
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Slide 18: Annual Meeting of Stockholders April 25, 2019
ANNUAL MEETING OF STOCKHOLDERS APRIL 25, 2019 RENAISSANCE WOODBRIDGE HOTEL 18
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