Exhibit 99.1
2005 Annual Meeting of Stockholders
PROVIDENT FINANCIAL SERVICES, INC.
April 27, 2005
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PROVIDENT FINANCIAL SERVICES, INC.
Financial Highlights 1st Quarter 2005
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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 periods, or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those related to the economic environment, particularly in the market areas in which Provident Financial Services, Inc. (the “Company”) operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets and the availability of and costs associated with sources of liquidity.
The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company wishes to advise readers that the factors listed above could affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake and specifically declines any obligation to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
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Financial Highlights
(Dollars in thousands)
INCOME STATEMENT: 3/31/05 3/31/04
Net income $15,022 $10,294
Diluted earnings per share $0.22 $0.19
Return on equity 5.34% 5.06%
Return on assets 0.95% 0.98%
Net interest margin 3.38% 3.50%
Efficiency ratio 58.83% 63.40%
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Financial Highlights
(Dollars in thousands)
BALANCE SHEET: 3/31/05 12/31/04
Total assets $6,359,476 $6,433,322
Total loans $3,678,695 $3,707,211
Total deposits $4,051,903 $4,050,473
Total investments $1,782,374 $1,900,256
Total borrowings $1,136,435 $1,193,177
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Financial Highlights
ASSET QUALITY: 3/31/05 3/31/04
Non-performing loans to total loans 0.15% 0.19%
Non-performing assets to total assets 0.09% 0.10%
Allowance for loan losses to total loans 0.92% 0.91%
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PROVIDENT FINANCIAL SERVICES, INC.
Focused on Performance Positioned for Success
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Positioned for Success
A strong franchise in great markets
Continuing evolution of business model from traditional thrift to full-service community bank
Ongoing emphasis on core deposit generation to build customer relationships and manage interest rate risk
Consistent building of commercial lending expertise
Rational branch expansion strategy
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Strengths of Our Franchise Market Presence
Acquisition of First Sentinel Bancorp, Inc. completed July 14, 2004 Combination created
New Jersey’s 8th largest bank in deposit market share*
3rd largest headquartered in New Jersey*
Significantly enhanced presence in market with superior demographics
*Source: FDIC—SOD as of 6/30/04 excludes brokerage/institutional deposits
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Sussex
Warren
Morris
Rockland
Union
New Jersey
New York
Pennsylvania
Burlington
Ocean
Copyright (c) 2005 SNL Financial LC. All rights reserved
18.7ml
78 Branches in 10 Counties
Corporate Headquarters Jersey City, NJ
Loan Center Woodbridge, NJ
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Strengths of Our Franchise Reputation
166 years as an independent financial services company
Brand recognition in the nation’s most densely populated state
allows us to compete with larger banks and to compete with new entrants in our market
Established tradition of community involvement and corporate citizenship
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Strengths of Our Franchise Commercial Lending Capabilities
Continued building of lending team and talent
Dedicated to building total relationships with commercial customers
Steadily increasing ratio of commercial loan assets to total earning assets
State-wide reputation as a commercial real estate and C & I lender
Constant maintenance of credit standards and asset quality
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Strengths of Our Franchise Retail Client Services
Range and depth of deposit and loan product offerings for retail customers
Effective delivery with constant focus on customer service and satisfaction
Ongoing investment in the tools, training and talent to define and fulfill individual customer needs
Continuous development of delivery channels for customer convenience
Branch services
Contact Center
ATMs
Internet
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Focused on Performance
Maintaining a Strong Balance Sheet
Commitment to asset quality maintenance
Active balance sheet management and rational pricing to maintain net interest margin
Commitment to improvement of operating efficiency
Commitment to increase deposit market share
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Focused on Performance Capital Deployment
Continue to look at acquisition opportunities
Rational expansion within existing footprint
Must add long-term stockholder value
Stock Repurchase
Completed first program 4th Quarter 2004; approximately 4.0 million shares repurchased
Board approved second program January 2005; approximately 3.7 million shares authorized; approximately 2.2 million shares left for repurchase as of March 31, 2005
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Focused on Performance Capital Deployment (cont’d)
Cash Dividends
$0.04 per common share dividend declared after first quarter of operation as a public company
25% increase to $0.05 per share declared July 2003
20% increase to $0.06 per share declared January 2004
16.7% increase to $0.07 per share declared January 2005
14.3% increase to $0.08 per share declared April 2005
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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.
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