Provident Financial Services, Inc · NYSE:PFS
Provident Financial Services — Merger or Acquisition (December 2013)
11 slides from Provident Financial Services's merger presentation, Dec 20, 2013
Slide 1: Investor Presentation: Acquisition of Team Capital Bank
Exhibit 99.2 Investor Presentation Acquisition of Franchise Expansion to Eastern Pennsylvania December 20, 2013
Slide 2: Forward-Looking Statements Disclosure
Forward-Looking Statements Disclosure This presentation may contain forward-looking statements regarding Provident Financial Services, Inc. These statements constitute forward-looking information within the definition of the Private Securities Litigation Reform Act of 1995. Actual results may differ
Slide 3: Transaction Rationale
Transaction Rationale Enhances New Jersey Franchise with Expansion into Eastern Pennsylvania Provident currently lends in Team Capital’s Pennsylvania markets, and the acquisition will accelerate growth in those areas Large, attractive lending markets offering favorable loan spreads Talented lending
Slide 4: Pro Forma Branch Map
Pro Forma Branch Map Pro Forma Branch Dep. % of Branch Dep. % of # ($mm) Total # ($mm) Total NJ 7 $383 51% 85 $5,639 94% PA 5 $362 49% 5 $362 6% Total 12 $745 90 $6,001 Provident Financial (78) Team Capital (12) 3 Deposit data as of 9/30/13.
Slide 5: Transaction Overview
Transaction Overview Merger Consideration: $122 million 1 75% stock / 25% cash Consideration Mix: Represents approximately 4.9 million PFS shares and $31 million in cash Board Representation: One Provident board seat to Team Capital Customary regulatory approvals Required Approvals: Team Capital sha
Slide 6: Overview of Team Capital
Overview of Team Capital 1 Company Description Financial Summary ($ in millions) Team Capital Bank is a Pennsylvania state-chartered Assets $949 savings bank Net Loans $581 Deposits $745 Organized by regional segments / lending teams, which include: Lehigh Valley, Bucks County and New Jersey Tangibl
Slide 7: Pro Forma Loans & Deposits
Pro Forma Loans & Deposits Loan Composition Provident Team Capital Pro Forma Other Other Other 1-4 C&D 7% C&D 6% 1-4 4% 1-4 C&D 9% Family 4% Family 18% C&I C&I Family 5% 28% 8% 8% 29% C&I Multi- 12% Family 5% Com'l Multi- Com'l RE Family Multi- RE 51% Com'l 17% Family 36% RE 16% $5,083 million $590
Slide 8: Entry into Growing Markets
Entry into Growing Markets Team’s Pennsylvania markets have an attractive business climate due to proximity to large markets such as Philadelphia and New York, lower tax rates and affordable real estate - A large number of Fortune 500 companies have established warehouses and distribution centers wi
Slide 9: Financial Impact
Financial Impact 5% EPS accretion in 2015 (first full year); slightly accretive to EPS in 2014 (excluding non-recurring deal related expenses) 1 Financial Impact: TBV per share dilution of 3.5% at closing with earnback of 4 years IRR greater than 15% Pro forma TCE/TA at close: 8.7% Cost savings: App
Slide 10: Summary
Summary Enhances New Jersey franchise and accelerates growth in Eastern Pennsylvania Team Capital is a commercially-oriented bank with strong profitability, loan growth and asset quality Financially attractive transaction with 5% EPS accretion, 3.5% TBV dilution with reasonable earnback, IRR greater
Slide 11: Investor Presentation
Investor Presentation — PROVIDENT FINANCIAL SERVICES, INC.
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