-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Nz/YzX3LYbIcMkww8rKpHeOqCPYyyNplSRV5A1UwcRoJrA9fiz05D83jl2aY91/U RrhKKRoaZ6OUlQv0ttM0Ow== 0000943374-05-000062.txt : 20050127 0000943374-05-000062.hdr.sgml : 20050127 20050126194341 ACCESSION NUMBER: 0000943374-05-000062 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050126 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050127 DATE AS OF CHANGE: 20050126 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PROVIDENT FINANCIAL SERVICES INC CENTRAL INDEX KEY: 0001178970 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 421547151 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-31566 FILM NUMBER: 05551467 BUSINESS ADDRESS: STREET 1: 830 BERGEN AVENUE CITY: JERSEY CITY STATE: NJ ZIP: 07306 BUSINESS PHONE: 2013331000 8-K 1 form8kearnings_012605.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): January 26, 2005 ---------------- PROVIDENT FINANCIAL SERVICES, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 001-31566 42-1547151 - ----------------------------- --------------------- ------------------- (State or Other Jurisdiction) (Commission File No.) (I.R.S. Employer of Incorporation) Identification No.) 830 Bergen Avenue, Jersey City, New Jersey 07306-4599 - ------------------------------------------ ---------- (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (201) 333-1000 -------------- Not Applicable -------------- (Former Name or Former Address, if Changed Since Last Report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02 Results of Operation and Financial Condition. --------------------------------------------- On January 26, 2005, Provident Financial Services, Inc. (the "Company") issued a press release reporting its financial results for the three months and full year ended December 31, 2004. A copy of the press release is attached as Exhibit 99.1 to this report and is being furnished to the SEC and shall not be deemed "filed" for any purpose. Item 7.01 Regulation FD Disclosure. ------------------------- On January 26, 2005, the Company announced that its Board of Directors took the following actions: 1. declared a $0.07 per share dividend, payable on February 28, 2005 to stockholders of record on February 11, 2005, which represents an increase of 16.7% from the prior quarter's cash dividend; and 2. authorized a new stock repurchase program for the Company to purchase up to 5% of its outstanding shares of common stock, par value $0.01 per share or approximately 3.7 million shares. These announcements were included as part of the press release announcing financial results issued by the Company on January 26 and attached as Exhibit 99.1 to this report. A copy of the press release is being furnished to the SEC and shall not be deemed "filed" for any purpose. Item 9.01. Financial Statements and Exhibits --------------------------------- (c) Exhibits. Exhibit No. Description ----------- ----------- 99.1 Press release issued by the Company on January 26, 2005 announcing its financial results for the three months and full year ended December 31, 2004, the declaration of a quarterly cash dividend and the authorization of a stock repurchase program. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized. PROVIDENT FINANCIAL SERVICES, INC. DATE: January 26, 2005 By: /s/ Paul M. Pantozzi ------------------------------------- Paul M. Pantozzi Chairman and Chief Executive Officer EXHIBIT INDEX Exhibit Description - ------- ----------- 99.1 Press release issued by the Company on January 26, 2005 announcing its financial results for the three months and full year ended December 31, 2004, the declaration of a quarterly cash dividend and authorization of a stock repurchase program. EX-99.1 2 form8kearnings_ex991-012605.txt EARNINGS RELEASE NEWS RELEASE CONTACT: Kenneth Wagner, SVP Investor Relations Provident Financial Services, Inc. (201) 915-5344 FOR RELEASE 5:00 P.M. Eastern Time: January 26, 2005 Provident Financial Services, Inc. Announces Increases in Quarterly and Annual Earnings, Increase in Quarterly Dividend and Second Stock Repurchase Program JERSEY CITY, N.J., Jan 26 /PRNewswire-First Call/ -- Provident Financial Services, Inc. (NYSE:PFS) (the "Company") reported net income of $17.1 million for the three months ended December 31, 2004 and $49.3 million for the year ended December 31, 2004, compared to $8.2 million and $18.7 million, respectively, for the same periods in 2003. Basic and diluted earnings per share were $0.25 and $0.24, respectively, for the quarter ended December 31, 2004, compared to basic and diluted earnings per share of $0.15 for the quarter ended December 31, 2003. Basic and diluted earnings per share were $0.80 for the year ended December 31, 2004, compared to basic and diluted earnings per share of $0.31 for the period from January 15, 2003, the date of the Company's stock conversion, through December 31, 2003. Earnings and per share data for 2004 reflected the impact of the Company's acquisition of First Sentinel Bancorp, Inc. ("First Sentinel") from July 14, 2004, the date the acquisition was completed. Fourth quarter and full year 2004 earnings were impacted by one-time expenses related to the merger and integration of First Sentinel's operations of approximately $291 thousand and $1.2 million, respectively, net of tax. Net income for the year ended December 31, 2003 reflected the one-time expense associated with the $15.6 million, net of tax, contribution to The Provident Bank Foundation. Paul M. Pantozzi, Chairman and Chief Executive Officer, commented, "Our positive fourth quarter results are indicative of our continued progress toward attaining our strategic objectives of improving operating efficiency, maximizing core deposits and building our commercial loan portfolios. We are pleased to share our success with our shareholders and report that the Company's Board of Directors has today approved an increase in our quarterly cash dividend and has authorized a second stock repurchase program." Declaration of Quarterly Dividend On January 26, 2005, the Company's Board of Directors declared a quarterly cash dividend of $0.07 per common share, an increase of 16.7% from the prior quarter's cash dividend of $0.06 per share. The dividend is payable on February 28, 2005 to stockholders of record as of the close of business on February 11, 2005. Authorization of Stock Repurchase Program On January 26, 2005, the Company's Board of Directors authorized a new stock repurchase program. The Company had completed all repurchases authorized under the previous plan. Under this new authorization, the Company may repurchase approximately 3.7 million shares, or five percent of the Company's outstanding shares of common stock. Repurchases will be made from time to time and will be effectuated through open market purchases, unsolicited negotiated transactions, or in such other manner deemed appropriate by management. Completion of the repurchase program will not be limited to a specific time period. The Company's repurchase activities will take into account SEC safe harbor rules and guidance for issuer repurchases. Balance Sheet Summary Total assets grew to $6.43 billion at December 31, 2004, compared to $4.28 billion at December 31, 2003, with the increase primarily due to the First Sentinel acquisition and internal growth in the Company's loan portfolio. The fair value of assets acquired in the First Sentinel transaction totaled $2.57 billion at July 14, 2004, while deposits and borrowings assumed totaled $1.36 billion and $566.5 million, respectively. Intangible assets grew $419.2 million to $443.1 million at December 31, 2004, from $23.9 million at December 31, 2003, as a result of the goodwill and core deposit intangibles recorded in connection with the First Sentinel acquisition. At December 31, 2004, the goodwill and the core deposit intangibles related to the First Sentinel acquisition totaled $390.2 million and $29.8 million, respectively. The core deposit intangible is being amortized on an accelerated basis over 8.8 years. The Company performs periodic impairment testing of intangible assets. There was no impairment recognized in 2004. The Company's net loans increased $272.2 million, or 12.3%, during the year ended December 31, 2004, excluding $1.18 billion in net loans added through the First Sentinel acquisition. Internal loan growth highlights for the year ended December 31, 2004 included a $96.6 million, or 38.5%, increase in commercial and industrial loans, a $98.2 million, or 32.8%, increase in consumer loans, and a $108.1 million, or 6.9%, increase in loans secured by real estate. Prudent growth in commercial and commercial real estate lending remains a focus of the Company. The increase in consumer loans was largely attributable to an increase in indirect auto loans, as well as in fixed-rate home equity loans and home equity lines of credit. Excluding $745.2 million of investments acquired through the First Sentinel acquisition, total investments decreased $562.9 million, or 33.7%, during the year ended December 31, 2004. Proceeds from investment sales, maturities and scheduled cash flows were used to fund loan growth and the cash portion of the First Sentinel acquisition consideration. Core deposits, consisting of savings and demand deposit accounts, increased $33.5 million, or 1.9%, for the year ended December 31, 2004, excluding $858.9 million in core deposits acquired through the First Sentinel acquisition. Total deposits were $4.05 billion at December 31, 2004, with core deposits representing 65.6% of total deposits. Common stock repurchases for the three and twelve months ended December 31, 2004 totaled 738 thousand shares at an average cost of $18.41 per share and 4.0 million shares at an average cost of $17.88 per share, respectively. At December 31, 2004, book value per share and tangible book value per share totaled $15.34 and $9.36, respectively. Results of Operations Net Interest Margin The net interest margin decreased three basis points to 3.38% for the quarter ended December 31, 2004, compared with 3.41% for the same period in 2003. This represented a decrease of five basis points versus the trailing quarter net interest margin of 3.43%. The weighted average rate for interest-earning assets was 4.90% for the three months ended December 31, 2004, compared with 4.67% for the three months ended December 31, 2003 and 4.89% for the trailing quarter. The weighted average rate for interest-bearing liabilities was 1.79% for the quarter ended December 31, 2004, compared with 1.64% for the fourth quarter of 2003 and 1.70% for the quarter ended September 30, 2004. The increases in rates on interest-bearing liabilities were primarily attributable to higher rates of interest paid on savings and time deposits as a result of rising market interest rates. The net interest margin increased three basis points to 3.40% for the year ended December 31, 2004, compared with 3.37% for the same period in 2003. The weighted average rate for interest-earning assets was 4.81% for the year ended December 31, 2004, compared with 4.78% for the year ended December 31, 2003. The weighted average rate for interest-bearing liabilities was 1.72% for the year ended December 31, 2004, compared with 1.87% for the same period in 2003. Non-Interest Income Non-interest income totaled $6.6 million for the quarter and $29.2 million for the year ended December 31, 2004, representing increases of $103 thousand, or 1.6%, and $5.3 million, or 22.3%, respectively, compared to the same periods in 2003. Fee income from retail deposits increased $933 thousand, or 21.8%, to $5.2 million for the three months ended December 31, 2004, compared to $4.3 million for the three months ended December 31, 2003. For the year ended December 31, 2004, fee income from retail deposits increased $4.1 million, or 25.0%, to $20.4 million compared to $16.3 million for the same period in 2003. The increase in deposit fees was largely attributable to the implementation of overdraft privilege in late 2003. Non-Interest Expense For the three months ended December 31, 2004, non-interest expense increased $3.4 million, or 11.9%, to $32.3 million compared to $28.8 million for the three months ended December 31, 2003. Amortization of intangibles increased $1.5 million for the quarter ended December 31, 2004, compared with the same period in 2003, primarily as a result of amortization of the core deposit intangible recorded in connection with the First Sentinel acquisition. Additional increases in occupancy expense of $1.1 million and data processing expense of $735 thousand for the quarter ended December 31, 2004, compared with the same period in 2003, were also due primarily to the acquisition and integration of First Sentinel's operations. Partially offsetting these increases, compensation and employee benefits expense declined $1.1 million for the quarter ended December 31, 2004, compared with the same period in 2003. The decline in compensation and benefits expense was a result of the capitalization of severance costs attributable to the First Sentinel acquisition, as well as reductions in pension expense and employee insurance costs, partially offset by an increase in employee headcount. For the year ended December 31, 2004, non-interest expense decreased $7.4 million, or 5.9%, to $119.3 million compared to $126.8 million for the year ended December 31, 2003. A $24.0 million decrease in charitable contributions associated with the formation of The Provident Bank Foundation in early 2003 was partially offset by increases in compensation and employee benefits expense of $6.4 million, including stock-based compensation and executive severance. Occupancy expense increased $2.9 million for the year ended December 31, 2004, compared with the same period in 2003, primarily as a result of the additional 22 branch locations obtained through the First Sentinel acquisition. Advertising expense increased $2.2 million for the year ended December 31, 2004, compared with the same period in 2003, as a result of as the cost of customer communications associated with the integration of First Sentinel, as well as increased marketing efforts in support of the Company's focus on loan and core deposit generation. Data processing expense increased $1.6 million for the year ended December 31, 2004, compared with the same period in 2003, due primarily to the acquisition and integration of First Sentinel's operations. Furthermore, amortization of intangibles increased $1.6 million for the year ended December 31, 2004, compared with the same period in 2003, primarily as a result of amortization of the core deposit intangible recorded in connection with the First Sentinel acquisition. Income Tax Expense For the three and twelve months ended December 31, 2004, the Company's effective tax rates were 22.2% and 28.1%, respectively, compared with 28.3% and 27.3% for the three and twelve months ended December 31, 2003, respectively. In the fourth quarter of 2004, the Company reduced a valuation allowance against a deferred tax asset created in connection with the formation of The Provident Bank Foundation in early 2003. The reduction in valuation allowance resulted in a decrease in fourth quarter 2004 income tax expense of $1.9 million. The reduction in the valuation allowance was attributable to projected improvement in the Company's ability to generate sufficient future taxable income to realize the deferred tax asset. This improvement in the Company's future earnings outlook was largely due to the successful acquisition and integration of First Sentinel's business. Asset Quality The Company continues to emphasize asset quality. Total non-performing loans as of December 31, 2004 were $6.4 million, or 0.17% of loans, compared to $4.9 million, or 0.13% of total loans at September 30, 2004, and $6.1 million, or 0.27% of total loans at December 31, 2003. At December 31, 2004, the Company's allowance for loan losses was 0.91% of total loans and 529.5% of non-performing loans, compared with 0.90% of total loans and 687.9% of non-performing loans at September 30, 2004, and 0.92% of total loans and 336.7% of non-performing loans at December 31, 2003. The provision for loan losses for the three months ended December 31, 2004 totaled $900 thousand, compared with net charge-offs of $764 thousand. For the year ended December 31, 2004, the provision for loan losses totaled $3.6 million, while net charge-offs were $3.4 million. About the Company Provident Financial Services, Inc. is the bank holding company for The Provident Bank. The Bank currently operates 78 full service branches throughout northern and central New Jersey. Post Earnings Conference Call Representatives of the Company will hold a conference call for investors at 10:00 a.m. Eastern Time on Thursday January 27, 2005 regarding highlights of the Company's fourth quarter 2004 financial results. The call can be accessed by dialing 1-866-800-8649 (Domestic) or 1-617-614-2703 (International) and stating the pass code number: 46590451. Internet access to the call is also available (listen only) at www.providentnj.com by going to Investor Relations and clicking on Webcast. Forward Looking Statements 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 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. PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY Consolidated Statements of Condition December 31, 2004 (Unaudited) and December 31, 2003 (Dollars in Thousands)
Assets December 31, 2004 December 31, 2003 --------------------------------- ---------------------------- Cash and due from banks $ 121,187 $ 106,228 Federal funds sold 16,000 -- Short-term investments 26,507 69,624 --------------------------------- ---------------------------- Total cash and cash equivalents 163,694 175,852 --------------------------------- ---------------------------- Investment securities (market value of $450,071 (unaudited) and $524,429 at December 31, 2004 and 2003, respectively) 445,633 517,789 Securities available for sale, at fair value 1,406,340 1,151,829 Federal Home Loan Bank stock 48,283 34,585 Loans 3,707,211 2,237,367 Less allowance for loan losses 33,766 20,631 --------------------------------- ---------------------------- Net loans 3,673,445 2,216,736 --------------------------------- ---------------------------- Other real estate owned, net 140 41 Banking premises and equipment, net 64,605 46,741 Accrued interest receivable 23,865 16,842 Intangible assets 443,148 23,938 Bank-owned life insurance 105,932 71,506 Other assets 58,237 29,019 --------------------------------- ---------------------------- Total assets $ 6,433,322 $ 4,284,878 ================================= ============================ Liabilities and Stockholders' Equity Deposits: Demand deposits $ 1,116,812 $ 774,988 Savings deposits 1,538,466 987,877 Certificates of deposit of $100,000 or more 253,024 148,306 Other time deposits 1,142,171 784,805 --------------------------------- ---------------------------- Total deposits 4,050,473 2,695,976 Mortgage escrow deposits 15,389 11,061 Borrowed funds 1,166,064 736,328 Subordinated debentures 27,113 -- Other liabilities 37,507 24,394 --------------------------------- ---------------------------- Total liabilities 5,296,546 3,467,759 --------------------------------- ---------------------------- Stockholders' Equity: Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued -- -- Common stock, $0.01 par value, 200,000,000 shares authorized, 79,879,017 shares issued and 74,078,784 shares outstanding at December 31, 2004 and 61,538,300 shares issued and 60,600,100 shares outstanding at December 31, 2003, respectively 799 615 Additional paid-in capital 960,792 606,541 Retained earnings 358,678 324,250 Accumulated other comprehensive income 3,767 6,416 Treasury stock at cost (3,961,278 shares at December 31, 2004) (70,810) -- Unallocated common stock held by Employee Stock Ownership Plan (76,101) (78,816) Common Stock acquired by the Stock Award Plan (40,349) (41,887) Common Stock acquired by the Directors' Deferred Fee Plan (765,318 shares at December 31, 2004) (13,379) -- Deferred compensation - Directors' Deferred Fee Plan 13,379 -- -------------------------------- ---------------------------- Total stockholders' equity 1,136,776 817,119 -------------------------------- ---------------------------- Total liabilities and stockholders' equity $ 6,433,322 $ 4,284,878 ================================ ============================
PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDAIRY Consolidated Statements of Income Three Months and Year Ended December 31, 2004 and 2003 (Dollars in Thousands)
Three Months Ended Year Ended December 31 December 31 ----------------------------- ---------------------------- 2004 2003 2004 2003 ------------- --------------- ------------- -------------- (Unaudited) (Unaudited) Interest income: Real estate secured loans $ 39,313 $ 21,744 $ 121,291 $ 84,307 Commercial loans 5,025 4,045 18,309 20,711 Consumer loans 7,136 4,573 23,084 18,432 Investment securities 4,661 4,984 19,183 17,708 Securities available for sale 14,072 10,785 46,675 41,639 Other short-term investments 72 93 480 463 Federal funds 52 206 521 1,246 ------------- --------------- ------------- -------------- Total interest income 70,331 46,430 229,543 184,506 ------------- --------------- ------------- -------------- Interest expense: Deposits 12,383 8,209 39,506 39,171 Borrowed funds 9,099 4,325 27,107 15,462 Subordinated debentures 319 -- 572 -- ------------- --------------- ------------- -------------- Total interest expense 21,801 12,534 67,185 54,633 ------------- --------------- ------------- -------------- Net interest income 48,530 33,896 162,358 129,873 Provision for loan losses 900 100 3,600 1,160 ------------- --------------- ------------- -------------- Net interest income after provision for loan losses 47,630 33,796 158,758 128,713 ------------- --------------- ------------- -------------- Non-interest income: Fees 5,215 4,282 20,409 16,325 Net (loss) gain on securities transactions (2) 455 1,310 1,116 Bank-owned life insurance 1,284 1,034 4,477 3,847 Other income 82 705 2,955 2,546 ------------- --------------- ------------- -------------- Total non-interest income 6,579 6,476 29,151 23,834 ------------- --------------- ------------- -------------- Non-interest expense: Compensation and employee benefits 14,747 15,886 61,098 54,683 Net occupancy expense 4,653 3,595 17,008 14,157 Federal deposit insurance 156 101 503 440 Data processing expense 2,414 1,679 8,234 6,618 Advertising and promotion expense 1,072 1,216 5,969 3,770 Amortization of intangibles 2,218 702 5,266 3,699 Other operating expenses 6,991 5,646 21,256 19,412 Contribution to The Provident Bank Foundation -- -- -- 24,000 ------------- --------------- ------------- -------------- Total non-interest expense 32,251 28,825 119,334 126,779 ------------- --------------- ------------- -------------- Income before income tax expense 21,958 11,447 68,575 25,768 Income tax expense 4,875 3,236 19,274 7,024 ------------- --------------- ------------- -------------- Net income $ 17,083 $ 8,211 $ 49,301 $ 18,744 ============= =============== ============= ============== Basic earnings per share $0.25 $0.15 $0.80 $0.31 Average basic shares outstanding 69,031,409 55,395,928 61,576,544 57,835,726 Diluted earnings per share $0.24 $0.15 $0.80 $0.31 Average diluted shares outstanding 69,766,411 55,299,358 61,932,173 57,965,640
PROVIDENT FINANCIAL SERVICES, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Dollars in thousands, except share data) (Unaudited)
At or for the Three At or for the Months Ended Year Ended December 31 December 31 ----------- ----------- 2004 2003 2004 2003 ---- ---- ---- ---- INCOME STATEMENT: Net interest income $48,530 $33,896 $162,358 $129,873 Provision for loan losses 900 100 3,600 1,160 Non-interest income 6,579 6,476 29,151 23,834 Non-interest expense 32,251 28,825 119,334 126,779 Income before income tax expense 21,958 11,447 68,575 25,768 Net income 17,083 8,211 49,301 18,744 Basic earnings per share (1) $0.25 $0.15 $0.80 $0.31 Diluted earnings per share (1) $0.24 $0.15 $0.80 $0.31 Interest rate spread 3.11% 3.03% 3.09% 2.91% Net interest margin 3.38% 3.41% 3.40% 3.37% PROFITABILITY: Annualized return on average assets 1.05% 0.78% 0.93% 0.46% Annualized return on average equity 6.06% 4.00% 5.06% 2.31% Annualized operating expense to average assets 1.99% 2.74% 2.25% 3.08% Efficiency ratio (net of Foundation expense) (2) 58.52% 71.40% 62.31% 66.87% ASSET QUALITY: Non-performing loans 6,378 6,128 Other real estate owned 140 41 Non-performing loans to total loans 0.17% 0.27% Non-performing assets to total assets 0.10% 0.14% Allowance for loan losses 33,766 20,631 Allowance for loan losses to non-performing loans 529.45% 336.67% Allowance for loan losses to total loans 0.91% 0.92% AVERAGE BALANCE SHEET DATA: Assets $6,485,607 $4,209,811 $5,315,860 $4,117,127 Loans, net 3,711,983 2,114,565 2,906,982 2,014,861 Earning assets 5,705,720 3,945,029 4,774,031 3,856,922 Core deposits 2,654,426 1,751,646 2,178,806 1,694,160 Borrowings 1,246,652 658,533 956,922 567,732 Interest-bearing liabilities 4,835,099 3,031,235 3,909,188 2,922,879 Stockholders' equity 1,128,147 821,146 974,963 812,452 Average yield on interest- earning assets 4.90% 4.67% 4.81% 4.78% Average cost of interest- bearing liabilities 1.79% 1.64% 1.72% 1.87% CAPITAL: Leverage capital 12.31% 13.27% 12.31% 13.27% Total risk-based capital 20.42% 22.36% 20.42% 22.36% Average equity to average assets 17.39% 19.51% 18.34% 19.73%
Notes (1) Basic and Diluted Earnings Per Share for the year ended December 31, 2003, include the results of operations from January 15, 2003, the date the Company completed its Plan of Conversion, in the amount of $17,755,000. (2) Efficiency Ratio Calculation Three Months Ended December 31, Year Ended December 31, ------------ ----------------------- 2004 2003 2004 2003 ---- ---- ---- ---- Net interest income $48,530 $ 33,896 $162,358 $129,873 Non-interest income 6,579 6,476 29,151 23,834 -------- -------- -------- -------- Total income $ 55,109 $ 40,372 $191,509 $153,707 ======== ======== ======== ======== Non-interest expense $ 32,251 $ 28,825 $119,334 $126,779 Less: Provident Bank Charitable Foundation Donation - - - (24,000) -------- -------- -------- -------- Adjusted non-interest expense $ 32,251 $ 28,825 $119,334 $102,779 ======== ======== ======== ======== Expense/Income: 58.52% 71.40% 62.31% 66.87% ======== ======== ======== ========
Average Quarterly Balance NET INTEREST MARGIN ANALYSIS (Unaudited) (Dollars in Thousands)
December 31, 2004 September 30, 2004 ----------------- ------------------ Average Average Average Average Balance Interest Yield Balance Interest Yield ---------------------------------- ---------------------------------- Interest-Earning Assets: Fed Funds Sold and Other Short-Term Investments $ 31,015 $ 124 1.59% $ 58,043 $ 203 1.39% Investment Securities (1) 454,764 4,661 4.08% 474,110 4,799 4.03% Securities Available for Sale 1,457,204 13,776 3.76% 1,455,892 14,258 3.90% Federal Home Loan Bank Stock 50,754 296 2.32% 48,730 165 1.35% Net Loans (2) Total Mortgage Loans 2,856,170 39,313 5.48% 2,605,044 35,920 5.49% Total Commercial Loans 343,923 5,025 5.81% 337,961 5,011 5.90% Total Consumer Loans 511,890 7,136 5.55% 462,854 6,552 5.63% ---------- ------------ ---------- ------------ Total Interest-Earning Assets $5,705,720 70,331 4.90% $5,442,634 66,908 4.89% ---------- ------------ ---------- ------------ Non-Interest Earning Assets: Cash and Due from Banks 107,695 100,488 Other Assets 672,192 611,289 ---------- ---------- Total Assets $6,485,607 $6,154,411 ========== ========== Interest-Bearing Liabilities: Demand Deposits $ 639,244 1,131 0.70% $ 659,449 1,530 0.92% Savings Deposits 1,546,669 3,684 0.95% 1,498,412 2,965 0.79% Time Deposits 1,402,534 7,568 2.15% 1,338,965 6,826 2.03% ---------- ------------ ---------- ------------ Total Deposits 3,588,447 12,383 1.37% 3,496,826 11,321 1.29% ---------- ------------ ---------- ------------ Borrowed Funds 1,246,652 9,418 3.01% 1,173,304 8,657 2.94% ---------- ------------ ---------- ------------ Total Borrowings 1,246,652 9,418 3.01% 1,173,304 8,657 2.94% ---------- ------------ ---------- ------------ Total Interest-Bearing Liabilities $4,835,099 21,801 1.79% $4,670,130 19,978 1.70% ---------- ------------ ---------- ------------ Non-Interest Bearing Liabilities 522,361 450,203 ---------- ---------- Total Liabilities 5,357,460 5,120,333 Stockholders' Equity 1,128,147 1,034,078 ---------- ---------- Total Liabilities & Stockholders' Equity $6,485,607 $6,154,411 ========== ========== Net interest income $ 48,530 $ 46,930 ============ ========== Net interest rate spread 3.11% 3.19% ==== ==== Net interest-earning assets $ 870,621 $ 772,504 ========== ========== Net interest margin (3) 3.38% 3.43% ==== ==== Ratio of interest-earning assets to interest-bearing liabilities 1.18x 1.17x ========== ========== - ---------------------------------------------- (1) Average outstanding balance amounts shown are amortized cost. (2) Average outstanding balances shown net of the allowance for loan losses, deferred loan fees and expenses, loan premiums and discounts and include non-accrual loans. (3) Net interest income divided by average interest-earning assets.
The following table summarizes the net interest margin for the previous year, inclusive.
12/31/04 09/30/04 6/30/04 3/31/04 12/31/03 4th Qtr. 3rd Qtr. 2nd Qtr. 1st Qtr. 4th Qtr. -------- -------- -------- -------- -------- Interest-Earning Assets: Securities 3.76% 3.79% 3.16% 3.53% 3.48% Net Loans 5.52% 5.55% 5.62% 5.78% 5.70% Total Interest-Earning Assets 4.90% 4.89% 4.58% 4.79% 4.67% Interest-Bearing Liabilities: Total Deposits 1.37% 1.29% 1.35% 1.35% 1.37% Total Borrowings 3.01% 2.94% 2.83% 2.76% 2.61% Total Interest-Bearing Liabilities 1.79% 1.70% 1.69% 1.67% 1.64% Interest Rate Spread 3.11% 3.19% 2.89% 3.12% 3.03% Net Interest Margin 3.38% 3.43% 3.28% 3.50% 3.41% Ratio of interest-earning assets to total interest-bearing liabilities 1.18x 1.17x 1.30x 1.30x 1.30x
Average YTD Balance NET INTEREST MARGIN ANALYSIS (Unaudited) (Dollars in Thousands)
December 31, 2004 September 30, 2004 ----------------- ------------------ Average Average Average Average Balance Interest Yield Balance Interest Yield ---------------------------------- ---------------------------------- Interest-Earning Assets: Fed Funds Sold and Other Short-Term Investments $ 87,635 $ 1,001 1.14% $ 157,854 $ 1,709 1.08% Investment Securities (1) 484,583 19,183 3.96% 461,742 17,708 3.84% Securities Available for Sale 1,253,570 45,968 3.67% 1,196,435 40,880 3.42% Federal Home Loan Bank Stock 41,261 707 1.71% 26,030 759 2.92% Net Loans (2) Total Mortgage Loans 2,183,550 121,291 5.55% 1,348,872 84,307 6.25% Total Commercial Loans 320,669 18,309 5.71% 393,853 20,711 5.26% Total Consumer Loans 402,763 23,084 5.73% 272,136 18,432 6.77% ---------- ------------ ---------- ------------ Total Interest-Earning Assets $4,774,031 229,543 4.81% $3,856,922 184,506 4.78% ---------- ------------ ---------- ------------ Non-Interest Earning Assets: Cash and Due from Banks 93,511 83,981 Other Assets 448,318 176,224 ---------- ---------- Total Assets $5,315,860 $4,117,127 ========== ========== Interest-Bearing Liabilities: Demand Deposits $ 541,120 4,274 0.79% $ 413,582 3,590 0.87% Savings Deposits 1,254,758 11,011 0.88% 952,776 11,839 1.24% Time Deposits 1,156,388 24,221 2.09% 988,789 23,742 2.40% ---------- ------------ ---------- ------------ Total Deposits 2,952,266 39,506 1.34% 2,355,147 39,171 1.66% ---------- ------------ ---------- ------------ Borrowed Funds 956,922 27,679 2.89% 567,732 15,462 2.72% ---------- ------------ ---------- ------------ Total Borrowings 956,922 27,679 2.89% 567,732 15,462 2.72% ---------- ------------ ---------- ------------ Total Interest-Bearing Liabilities $3,909,188 67,185 1.72% $2,922,879 54,633 1.87% ---------- ------------ ---------- ------------ Non-Interest-Bearing Liabilities 431,709 381,796 ---------- ---------- Total Liabilities 4,340,897 3,304,675 Stockholders' Equity 974,963 812,452 ---------- ---------- Total Liabilities & Stockholders' Equity $5,315,860 $4,117,127 ========== ========== Net interest income $ 162,358 $ 129,873 ============ ============ Net interest rate spread 3.09% 2.91% ==== ==== Net interest-earning assets $ 864,843 $ 934,043 ========== ========== Net interest margin (3) 3.40% 3.37% ==== ==== Ratio of interest-earning assets to interest-bearing liabilities 1.22x 1.32x ========== ========== - -------------------------------------------- (1) Average outstanding balance amounts shown are amortized cost. (2) Average outstanding balances shown net of the allowance for loan losses, deferred loan fees and expenses, loan premiums and discounts and include non-accrual loans. (3) Net interest income divided by average interest-earning assets.
The following table summarizes the net interest margin for the three previous years, inclusive.
Year Ended --------------------------------- 12/31/04 12/31/03 12/31/02 -------- -------- -------- Interest-Earning Assets: Securities 3.58% 3.31% 4.67% Net Loans 5.60% 6.13% 6.87% Total Interest-Earning Assets 4.81% 4.78% 6.16% Interest-Bearing Liabilities: Total Deposits 1.34% 1.66% 2.44% Total Borrowings 2.89% 2.72% 4.10% Total Interest-Bearing Liabilities 1.72% 1.87% 2.57% Interest Rate Spread 3.09% 2.91% 3.59% Net Interest Margin 3.40% 3.37% 3.96% Ratio of interest-earning assets to interest-bearing liabilities 1.22x 1.32x 1.17x
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