1 Exhibit 99.1 |
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 cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company also advises 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. A detailed discussion of factors that could affect our results is included in our SEC filings, including the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2011 and our Quarterly Report on Form 10-Q filed November 9, 2012. 2 Forward Looking Statements |
Superior Markets Consistent Performance Valuable Deposit Franchise Proven Asset Generator Capable Risk Manager Shareholder Focused 3 Why PFS? |
New Jersey’s oldest state chartered bank Over 75 branch offices Wealth Management and Trust Administration Services Well capitalized under current regulatory standards Ten year history of quarterly cash dividends to stockholders No TARP No dilutive stock offerings No bulk NPA sales or debt restructurings 4 Company Highlights |
5 Total Return |
6 Dividend History |
7 To date, requests for relief limited to 13 loans totaling $4.9 million Effective disaster contingency plan minimized customer disruption “At risk” loans in designated flood zones in Monmouth, Ocean, and Hudson counties represent < 4% of the total loan portfolio Strong sponsors, prudent underwriting, federal flood insurance, private coverage, and business interruption insurance are expected to minimize loss exposure Costs related to storm damage totaled $624,000 in Q4 2012 Superstorm Sandy |
8 2012: A Record Setting Year 2012 Change vs. 2011 Total Assets $7.3 B $186 M 2.6% Loans $4.9 B $251 M 5.4% NIB $864 M $166 M 24.0% Deposits $5.4 B $272 M 5.3% |
2012 Change vs. 2011 Net Int Inc $217 M $1 M 0.6% Non Int Inc $44 M $11 M 34.0% Net Revenue $261 M $12 M 5.0% 9 2012: A Record Setting Year |
2012 Change vs. 2011 Net Income $67 M $10 M 17.3% EPS $1.18 $0.17 16.8% ROAA 0.94% 0.11% 13.3% ROAE 6.88% 0.79% 13.0% ROATE 10.88% 1.07% 10.9% 10 2012: A Record Setting Year |
11 4 Q 2011 1 Q 2012 2 Q 2012 3 Q 2012 4 Q 2012 1.91% 1.89% 1.81% 1.65% 1.53% $135,351 $134,783 $129,141 $119,586 $111,463 NPAs NPAs/Assets Asset Quality 5 Quarter Trend |
12 Asset Quality 5 Quarter Trend |
Q4 2012 Q3 2012 Q4 2011 ALL/Loans 1.43% 1.46% 1.60% ALL/NPLs 71.07% 66.50% 60.67% ALL/Ann. NCOs 4.50 yrs 3.14 yrs 3.53 yrs 13 ALL Coverage |
Asset Composition $6.8 B $7.3 B 64% 25% 11% 2009 67% 23% 10% 2012 Loans Investments Other A Longer View: Structural Gains 14 |
Loan Composition 15 A Longer View: Structural Gains Commercial $2.3B 53% Consumer $2.1B 47% 2009 Commercial $3.1B 62% Consumer $1.8B 38% 2012 |
Direct vs. Indirect Lending 16 A Longer View: Structural Gains 84.0% 11.0% 2.2% 1.8% 1.0% 2009 89.7% 8.4% 0.6% 0.8% 0.5% 2012 Direct Purchased Residential SNCs Indirect Marine Indirect Auto / Other |
Total Loans: $4.9 Billion Average Loan Yield: 4.58% 17 Loan Portfolio – 12/31/12 1-4 Res. 26% CRE 27% Multi- family 15% Constr. 2% Consumer 12% C&I 18% |
18 Two years average increase between 2010-2012 10.63% Average Increase 18.33% Average Increase 31.71% Average Increase 40.36% Average Increase 17.17% Average Increase 52.51% Average Increase Loan Originations Trend |
19 Commercial Real Estate – 12/31/12 Multi-Family 35% Retail 23% Office 14% Industrial 13% Mixed Used 5% Special Use Property 4% Hotel 3% Land 1% Residential 1% Other 1% |
20 WAL AFS: 3.6 yrs HTM: 4.3 yrs Combined: 3.8 yrs Municipal Bonds 22% Corporate Notes - Fixed 0% Agency Notes - Fixed 6% Agency MBS - Fixed 33% Agency MBS - ARMs 6% Agency CMO - Fixed 30% Corporate CMO - Fixed 3% Investment Portfolio – 12/31/12 |
Funding / Earning Assets 21 A Longer View: Structural Gains 25% 16% 47% 8% 2009 Time Deposits Borrowings IB Core Deposits NIB Deposits 15% 12% 55% 13% 2012 |
Non-Interest Income/ Net Revenue: 2009 = $31.5M, 14.8% 2012 = $43.6M, 16.7% 22 A Longer View: Structural Gains -2.3% -0.8% -0.5% -0.1% 1.5% 2.0% 2.1% Deposit fees ($3.2M) Equity fund income ($1.7M) BOLI ($0.1M) Other $2.0M Loan fees $4.0M Securities gains $5.1M Wealth fees & Annuity Sales $6.1M |
Capacity Utilization 23 *Excludes impact of $152.5 million of Goodwill impairment in 2009. A Longer View: Structural Gains 2012 2009 Change Revenue $260,950 $212,469 $48,481 Eff. Eff. Non-Interest Expense* Compensation & benefits 80,874 30.99% 68,735 32.35% -1.36% Net occupancy expense 20,487 7.85% 20,170 9.49% -1.64% Data processing expense 10,318 3.95% 9,325 4.39% -0.43% FDIC Insurance 5,095 1.95% 11,778 5.54% -3.59% Advertising & promo expense 4,139 1.59% 4,291 2.02% -0.43% Amortization of intangibles 2,466 0.95% 5,111 2.41% -1.46% Other operating expenses 25,449 9.75% 25,121 11.82% -2.07% 148,828 57.03% 144,534 68.03% -10.99% |
24 *Excludes impact of $152.5 million of Goodwill impairment in 2009. A Longer View: Structural Gains 2012 2009 NIM 3.38% 3.06% Loans/Deposits 90.4% 89.5% Net Revenues $261M $212M Provision $16M $30M Net Income* $67M $31M |
25 Capital Ratios – 12/31/12 Provident Consolidated Bank PFS TCE - 9.00% Tier 1 Leverage 7.80% 8.93% Tier 1 RBC 11.08% 12.68% Total RBC 12.33% 13.93% |
26 Capital flexibility Recent additions to lending teams in Middle Market / Consumer / Healthcare / CRE Technology enhancements Sandy stimulus Accelerating economic recovery Opportunities |
27 |