INVESTOR PRESENTATION
NOVEMBER 13, 2003
Exhibit 99.1
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
Securities Litigation Reform Act of 1995. Such forward-looking
statements are subject to risks and uncertainties which could cause
actual results to differ materially from those currently anticipated due to
a number of factors, which include, but are not limited to, factors
discussed in documents filed by the Company with the Securities and
Exchange Commission from time to time. The Company undertakes no
obligation to update these forward-looking statements to reflect events or
circumstances that occur after the date on which such statements were
made. Access the filings and other financial and business information
regarding the Company at www.providentnj.com
Provident Financial Services, Inc. is the
Holding Company for The Provident Bank
On January 15, 2003:
Provident Financial Services, Inc. issued an aggregate
of 59.62 million shares and contributed cash and 1.92
million shares of its common stock to The Provident
Bank Foundation
$586.2 million in net proceeds raised.
$293.1 million distributed to The Provident Bank
$293.1 million retained by Holding Company
Our Company Profile (as of September 30, 2003)
$4.2 billion in Assets
$2.7 billion in Deposits
$2.1 billion in Loans
54 branches in 10 counties in northern and central New
Jersey
A full-service bank:
Full Range of Retail and Commercial Deposit Products
Retail and Commercial Lending
On-line and Telephone Banking
Trust Services and Investment Services
Mortgage Company Subsidiary
Title Insurance Company Joint Venture
Our Strengths: Tradition, Commitment, Focus
Tradition of Safe & Sound Management
New Jersey’s Oldest Bank; Established 1839
Commitment to Profitable Growth
Stock Conversion Completed January 15, 2003;
Significant one-time contribution to Charitable
Foundation
Significant funding expenses for Stock Benefit Plans
Commitment to Prudently Deploy Capital
Commitment to Maintain Asset Quality
Unwavering Customer Focus
Our Strategic Initiatives
Grow the Balance Sheet
Grow Market Share
Sustain and Increase Brand Awareness
Maximize Net Interest Income without Compromising
Asset Quality
Reinforce Pay-for-Performance Sales Culture
Build Enterprise-wide Understanding and Fulfillment
of Customer Needs
Control Operating Expenses in line with accelerating
Revenue Growth Goals
Our Financial Performance
* for the nine months ended September 30, 2003
($ in millions)
2003*
2002
2001
Assets
Loans, net
Deposits
$
3,243.3
Capital
Net Income
Net Interest Margin
3.33%
3.98%
3.79%
$
4,171.9
$
3,919.2
$
2,869.7
$
2,092.4
$
2,031.9
$
1,994.6
$
2,689.9
$
2,341.7
$
833.8
$
326.0
$
292.1
$
10.5
$
26.6
$
24.1
Our Business Drivers
Assess Merger & Acquisition Opportunities
Continue De Novo Branching
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 Attrition
Increase New Customer Acquisition
Integrate Consistent Sales Process and Customer Treatment
across all Delivery Channels
Loan Portfolio Diversification
to improve asset yields
to reduce exposure to interest rate risk
Loan Diversification Strategy
Long-term Strategy--Maintain even balance between
Retail Loan Portfolio and Commercial Loan Portfolio
Near-term Strategy will favor Retail Loans
Mortgage Warehouse line of business de-emphasized
Substantially all Warehouse Lines of Credit being sold
in 4th Quarter 2003
Asset redeployment focused on 1-4 Family Residential
Mortgages either originated or purchased
Our Current Market
Our Deposit Market Share
As of June 30, 2003:
15th of 176 FDIC-Insured Institutions in State of New
Jersey
13th of 135 FDIC-Insured Institutions in Provident’s
10-County Market Area
Increase for 12 Months ended June 30, 2003:
Total Deposits all New Jersey Institutions = 8.48%
Total Deposits Provident = 5.74%
Core Deposits Provident = 16.72%
Core Deposits are Provident’s ongoing Strategic Focus
Core Deposit Emphasis
to expand customer relationships
to effectively manage interest rate expense
Dual Strategy of Loan Diversification and Core Deposit
Emphasis has resulted in Net Interest Income Growth
$ in millions
Commitment to Asset Quality
Capital Management Strategies for
Earnings per Share Growth
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 strategies where warranted
Fund earning assets
De Novo branch pre funding
EPS for the period from January 15, 2003 thru
September 30, 2003 = $0.16
Our Mission
Our mission is to consistently provide superior value
to our stockholders by achieving strong financial
performance
to our customers by delivering high quality financial
solutions that help improve and enrich their lives
to our employees by maintaining a challenging and
rewarding work environment
to our communities by committing our personal
energies and financial resources and by
exemplifying outstanding leadership.
We will achieve this while holding ourselves to the highest
standards of personal and professional integrity.
Our Vision
Investors seek
Financial Performance
Which will be Driven by
Customers seek
Customer-Centricity
Employees seek
Which will be Driven by
Focused & Rewarded
Workforce