Provident Financial Services, Inc. Announces a 43% Increase in Quarterly Earnings

JERSEY CITY, N.J., April 27, 2012 /PRNewswire/ -- Provident Financial Services, Inc. (NYSE: PFS) (the "Company") reported net income of $18.4 million, or $0.32 per basic and diluted share for the three months ended March 31, 2012, compared to net income of $12.9 million, or $0.23 per basic and diluted share for the three months ended March 31, 2011.

The improvement in net income for the first quarter of 2012 compared to the prior year period was due in part to a $2.9 million reduction in the provision for loan losses resulting from decreases in both early stage loan delinquencies and non-performing loan formation.  The Company also recognized $2.2 million in gains on the strategic sale of certain mortgage-backed securities identified as having a significant risk of accelerated prepayment.  Further contributing to the improvement in net income versus the prior year period was an increase in net interest income of $1.4 million primarily due to an increase in average loans outstanding, funded by growth in average core deposits.  These increases were partially offset by a $1.4 million increase in non-interest expense and a $2.9 million increase in income tax expense.

Christopher Martin, Chairman, President and Chief Executive Officer, commented, "Our first quarter's earnings growth can be traced to improving asset quality, stability in our margin, and increased non-interest income.  When coupled with our ongoing expense management, substantial improvement in our operating efficiency was attained."  Martin continued: "While we have yet to experience any meaningful impact from regulatory reform via Dodd-Frank, we believe we are well-positioned to address any changes that may eventuate.  We again experienced core deposit growth during the quarter, while the cost of deposits continued to decline.  Also, as we previously announced, our Board increased the quarterly cash dividend by 8.3%, to $0.13 per share payable on May 31, 2012 to stockholders of record on May 15, 2012." 

Balance Sheet Summary

Total assets increased $23.7 million, or 0.3%, to $7.12 billion at March 31, 2012, from $7.10 billion at December 31, 2011.  The increase was primarily due to increases in securities available for sale, investment securities held to maturity, net loans and foreclosed assets, partially offset by a decrease in other assets. 

Total investments increased $27.0 million, or 1.5%, to $1.79 billion at March 31, 2012, from $1.76 billion at December 31, 2011.  The increase was primarily due to purchases of mortgage-backed securities, partially offset by principal repayments on mortgage-backed securities, the sale of specific mortgage-backed securities which had a high risk of prepayment and maturities of municipal and agency bonds.  

The Company's net loans increased $5.6 million, or 0.1%, during the three months ended March 31, 2012 to $4.58 billion.  Loan originations totaled $347.0 million and loan purchases totaled $19.1 million for the three months ended March 31, 2012.  The loan portfolio had net increases of $17.6 million in commercial and multi-family mortgage loans, $10.0 million in consumer loans and $3.9 million in construction loans, which were partially offset by decreases of $14.8 million in commercial loans and $11.2 million in residential mortgage loans.  Commercial real estate, commercial and construction loans represented 59.9% of the loan portfolio at March 31, 2012, compared to 59.8% at December 31, 2011.

At March 31, 2012, the Company's unfunded loan commitments totaled $803.9 million, including $306.7 million in commercial loan commitments, $103.1 million in construction loan commitments and $90.3 million in commercial mortgage commitments.  Unfunded loan commitments at December 31, 2011 were $770.4 million.

Other assets decreased $8.2 million, or 10.4%, to $70.6 million at March 31, 2012, from $78.8 million at December 31, 2011, primarily due to the amortization of prepaid FDIC insurance and income tax accruals.

Total deposits increased $38.3 million, or 0.7%, during the three months ended March 31, 2012 to $5.19 billion.  Core deposits, which consists of savings and demand deposit accounts, increased $77.2 million, or 1.9%, to $4.11 billion at March 31, 2012.  The majority of the core deposit increase was in interest bearing demand and savings deposits.  Time deposits decreased $38.9 million, or 3.4%, to $1.09 billion at March 31, 2012, with the majority of the decrease occurring in the 18- and 24-month maturity categories.  The Company remains focused on developing core deposit relationships, while strategically permitting the run-off of time deposits.  Core deposits represented 79.0% of total deposits at March 31, 2012, compared to 78.1% at December 31, 2011.   

Borrowed funds were reduced $27.1 million, or 2.9% during the three months ended March 31, 2012, to $893.1 million, as core deposit growth replaced wholesale funding.  Borrowed funds represented 12.5% of total assets at March 31, 2012, a reduction from 13.0% at December 31, 2011.

Common stock repurchases for the three months ended March 31, 2012, totaled 139,845 shares at an average cost of $13.86 per share.  At March 31, 2012, 1.6 million shares remained eligible for repurchase under the current authorization.  At March 31, 2012, book value per share and tangible book value per share were $16.04 and $10.06, respectively, compared with $15.88 and $9.87, respectively, at December 31, 2011. 

Results of Operations

Net Interest Income and Net Interest Margin

For the three months ended March 31, 2012, net interest income increased $1.4 million, to $54.8 million, from $53.4 million for the same period in 2011.  The improvement in net interest income resulted from the favorable effects of an increase in average interest earning assets, primarily average loans outstanding, funded with the growth in lower-cost core deposits, largely interest and non-interest bearing demand deposits.  This improvement in net interest income was partially offset by compression in the net interest margin.

The net interest margin for the quarter ended March 31, 2012 decreased 9 basis points to 3.42% compared with 3.51% for the quarter ended March 31, 2011.  The decrease in the net interest margin for the quarter ended March 31, 2012, compared with the same period last year, was primarily attributable to reductions in the weighted average yield on interest-earning assets, which declined 39 basis points to 4.19% for the quarter ended March 31, 2012, compared with 4.58% for the quarter ended March 31, 2011.  The weighted average cost of interest-bearing liabilities declined 33 basis points to 0.90% for the quarter ended March 31, 2012, compared with 1.23% for the first quarter of 2011.  The average cost of interest bearing deposits for the quarter ended March 31, 2012 was 0.62%, compared with 0.92% for the same period last year.  Average non-interest bearing demand deposits totaled $670.1 million for the quarter ended March 31, 2012, compared with $555.5 million for the quarter ended March 31, 2011.  The average cost of borrowed funds for the quarter ended March 31, 2012 was 2.25%, compared with 2.70% for the same period last year.  

The Company's net interest margin increased 3 basis points to 3.42% for the quarter ended March 31, 2012, from 3.39% for the quarter ended December 31, 2011.  The increase in the net interest margin versus the trailing quarter was primarily attributable to reductions in the weighted average cost of interest-bearing liabilities.  The weighted average cost of interest-bearing liabilities was 0.90% for the quarter ended March 31, 2012, compared with 0.99% for the trailing quarter.  The weighted average yield on interest-earning assets was 4.19% for the quarter ended March 31, 2012, compared with 4.24% for the quarter ended December 31, 2011.  The average cost of interest-bearing deposits for the quarter ended March 31, 2012 was 0.62%, compared with 0.72% for the trailing quarter.  The average cost of borrowed funds for the quarter ended March 31, 2012 was 2.25%, compared with 2.34% for the quarter ended December 31, 2011.  

Non-Interest Income

Non-interest income totaled $12.7 million for the quarter ended March 31, 2012, an increase of $5.6 million, or 77.5%, compared to the same period in 2011.  Fee income increased $2.5 million to $8.1 million for the three months ended March 31, 2012, from $5.6 million for the three months ended March 31, 2011, due primarily to increases in commercial loan prepayment fee income and increased wealth management fees attributable to Beacon Trust Company ("Beacon"), acquired in August 2011.  Net gains on securities transactions totaled $2.2 million for the three months ended March 31, 2012, compared to $14,000 for the same period in 2011, as the Company identified and sold certain securities which had a high risk of accelerated prepayment.  The proceeds from the sales were reinvested in similar securities with more stable projected cash flows.  These increases were partially offset by lower deposit-based fee revenue.  Additionally, other income increased $920,000 for the three months ended March 31, 2012, compared to the same period in 2011, primarily due to income associated with the discontinuance of the Company's debit card rewards program, an increase in gains resulting from a larger number of loan sales and increased net gains on the sale of foreclosed real estate.

Non-Interest Expense

For the three months ended March 31, 2012, non-interest expense increased $1.4 million, or 4.1%, to $36.8 million, compared to $35.4 million for the three months ended March 31, 2011.  Compensation and benefits increased $2.0 million for the quarter ended March 31, 2012, compared to the quarter ended March 31, 2011, due to annual merit increases and personnel added as a result of the Beacon acquisition, increased incentive compensation, increased post-retirement and pension costs and increased employee health and medical costs.  Other operating expenses increased $650,000, or 12.5%, to $5.9 million for the quarter ended March 31, 2012, from $5.2 million for the same period in 2011, due primarily to increased loan collection expense and additional operating expenses associated with Beacon.  Data processing expense increased $324,000 for the quarter ended March 31, 2012, compared to the same period in 2011, because of increased software maintenance and core processing fees.  Additionally, advertising and promotion expense increased $87,000 for the three months ended March 31, 2012, compared with the same period last year.  Partially offsetting these increases, FDIC insurance expense decreased $490,000, to $1.4 million for the three months ended March 31, 2012, from $1.9 million for the same period in 2011, due to the change in assessment methodology in April 2011 from deposit-based to asset-based.  Also, net occupancy expense decreased $248,000 for the three months ended March 31, 2012, compared with the same period in 2011, primarily due to lower seasonal expenses attributable to the milder winter and reduced operating expenses resulting from the consolidation of the Company's administrative offices in April 2011.  The amortization of intangibles decreased $101,000 for the three months ended March 31, 2012, compared with the same period in 2011, due to scheduled reductions in the amortization of core deposit intangibles, partially offset by the amortization of the customer relationship intangible arising from the Beacon acquisition.  During the quarter ended March 31, 2011, the Company recognized an impairment charge of $807,000 related to the then-anticipated sale and relocation of its loan center which was sold in November 2011.

The Company's annualized non-interest expense as a percentage of average assets was 2.08% for the quarter ended March 31, 2012, compared to 2.11% for the same period in 2011.  The efficiency ratio (non-interest expense divided by the sum of net interest income and non-interest income) was 54.45% for the quarter ended March 31, 2012, compared with 58.32% for the same period in 2011. 

Asset Quality

The Company's total non-performing loans at March 31, 2012 were $120.3 million, or 2.58% of total loans, compared with $122.5 million, or 2.63% of total loans at December 31, 2011, and $114.6 million, or 2.57% of total loans at March 31, 2011.  The decrease in non-performing loans at March 31, 2012, compared with the trailing quarter, was largely due to a $1.2 million decrease in non-performing residential loans, a $997,000 decrease in non-performing multi-family loans and a $544,000 decrease in non-performing consumer loans, partially offset by a $528,000 increase in non-performing commercial loans and a $176,000 increase in non-performing commercial mortgage loans.  At March 31, 2012, impaired loans totaled $111.6 million with related specific reserves of $8.0 million, compared with impaired loans totaling $103.2 million with related specific reserves of $9.3 million at December 31, 2011. 

At March 31, 2012, the Company's allowance for loan losses was 1.59% of total loans, compared with 1.60% of total loans at December 31, 2011, and 1.63% of total loans at March 31, 2011.  The Company recorded a provision for loan losses of $5.0 million for the quarter ended March 31, 2012, compared with a provision of $7.9 million for the quarter ended March 31, 2011.  For the three-month period ended March 31, 2012, the Company had net charge-offs of $5.4 million, compared with net charge-offs of $3.9 million for the same period in 2011.  The allowance for loan losses at March 31, 2012 was $74.0 million, compared to $74.4 million at December 31, 2011.

At March 31, 2012, the Company held $14.4 million of foreclosed assets, compared with $12.8 million at December 31, 2011.  Foreclosed assets at March 31, 2012 consisted of $7.1 million of residential real estate, $6.4 million of commercial real estate and $876,000 of marine vessels.

Income Tax Expense

For the three months ended March 31, 2012, the Company's income tax expense was $7.3 million, compared with $4.4 million for the same period in 2011.  The increase in income tax expense was a function of growth in pre-tax income from taxable sources.  The Company's effective tax rate was 28.5% and 25.5% for the three months ended March 31, 2012 and 2011, respectively.

About the Company

Provident Financial Services, Inc. is the holding company for The Provident Bank, a community-oriented bank offering a full range of retail and commercial loan and deposit products.  The Bank currently operates 81 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 Friday, April 27, 2012 regarding highlights of the Company's first quarter 2012 financial results.  The call may be accessed by dialing 1-877-317-6789 (Domestic), 1-412-317-6789 (International) or 1-866-605-3852 (Canada).  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 cautions readers not to place undue reliance on any such forward-looking statements which speak only as of the date made. The Company 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.


 

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

Consolidated Statements of Financial Condition

March 31, 2012 (Unaudited) and December 31, 2011

(Dollars in Thousands)










Assets



March 31, 2012


December 31, 2011










Cash and due from banks


$

68,243

$

68,553

Short-term investments



1,012


1,079




Total cash and cash equivalents



69,255


69,632










Securities available for sale, at fair value



1,399,961


1,376,119

Investment securities held to maturity (fair value of $368,016 at  March 31, 2012







(unaudited) and $366,296 at December 31, 2011)



351,669


348,318

Federal Home Loan Bank of New York ("FHLB-NY") stock



38,684


38,927










Loans




4,658,802


4,653,509


Less allowance for loan losses



73,996


74,351




Net loans



4,584,806


4,579,158










Foreclosed assets, net



14,440


12,802

Banking premises and equipment, net



65,508


66,260

Accrued interest receivable



22,701


24,653

Intangible assets




360,029


360,714

Bank-owned life insurance



143,372


142,010

Other assets




70,637


78,810




Total assets


$

7,121,062

$

7,097,403










Liabilities and Stockholders' Equity















Deposits:








Demand deposits


$

3,199,643

$

3,136,129


Savings deposits



905,440


891,742


Certificates of deposit of $100,000 or more



372,759


383,174


Other time deposits



717,032


745,552




Total deposits



5,194,874


5,156,597










Mortgage escrow deposits



23,370


20,955

Borrowed funds



893,066


920,180

Other liabilities



44,277


47,194




Total liabilities



6,155,587


6,144,926










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, 83,209,293 shares







 issued and 60,182,973 outstanding at March 31, 2012, and 59,968,195







outstanding at December 31, 2011



832


832

Additional paid-in capital



1,019,425


1,019,253

Retained earnings



374,109


363,011

Accumulated other comprehensive income



9,316


9,571

Treasury stock



(383,442)


(384,725)

Unallocated common stock held by the Employee Stock Ownership Plan ("ESOP")



(54,765)


(55,465)

Common Stock acquired by the Directors' Deferred Fee Plan ("DDFP")



(7,367)


(7,390)

Deferred Compensation - DDFP



7,367


7,390




Total stockholders' equity



965,475


952,477




Total liabilities and stockholders' equity


$

7,121,062

$

7,097,403


 

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

Consolidated Statements of Income

Three Months Ended March 31, 2012 and 2011 (Unaudited)

(Dollars in Thousands, except per share data)














Three Months Ended






March 31,






2012


2011

Interest income:







Real estate secured loans

$

38,959

$

40,290


Commercial loans


10,370


10,082


Consumer loans


6,289


6,519


Securities available for sale and FHLB-NY stock


8,332


9,494


Investment securities


2,918


3,093


Deposits, Federal funds sold and other short-term investments


12


9



Total interest income


66,880


69,487







Interest expense:






Deposits


7,002


9,830


Borrowed funds


5,041


6,210



Total interest expense


12,043


16,040



Net interest income


54,837


53,447

Provision for loan losses


5,000


7,900



Net interest income after provision for loan losses


49,837


45,547









Non-interest income:






Fees


8,075


5,562


Net gain on securities transactions


2,183


14


Bank owned life insurance


1,362


1,408


Other income


1,108


188



Total non-interest income


12,728


7,172









Non-interest expense:






Compensation and employee benefits


20,508


18,483


Net occupancy expense


5,026


5,274


Data processing expense


2,588


2,264


FDIC Insurance


1,390


1,880


Amortization of intangibles


739


840


Impairment of premises and equipment



807


Advertising and promotion expense


685


598


Other operating expenses


5,855


5,205



Total non-interest expenses


36,791


35,351



Income before income tax expense


25,774


17,368

Income tax expense


7,346


4,437



Net income

$

18,428

$

12,931









Basic earnings per share

$

0.32

$

0.23

Average basic shares outstanding


57,051,827


56,771,307









Diluted earnings per share

$

0.32

$

0.23

Average diluted shares outstanding


57,082,631


56,771,307



 

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

Consolidated Financial Highlights

(Dollars in Thousands, except share data) (Unaudited)

















At or for the 







Three Months Ended







March 31,







2012



2011

STATEMENTS OF INCOME:







Net interest income



$

54,837


$

53,447

Provision for loan losses




5,000



7,900

Non-interest income




12,728



7,172

Non-interest expense




36,791



35,351

Income before income tax expense



25,774



17,368

Net income





18,428



12,931

Basic and diluted earnings per share



$0.32



$0.23

Interest rate spread




3.29%



3.35%

Net interest margin




3.42%



3.51%











PROFITABILITY:








Annualized return on average assets



1.04%



0.77%

Annualized return on average equity



7.71%



5.65%

Annualized non-interest expense to average assets



2.08%



2.11%

Efficiency ratio (1)




54.45%



58.32%











ASSET QUALITY:








Non-accrual loans



$

120,343


$

114,553

90+ and still accruing






Non-performing loans




120,343



114,553

Foreclosed assets




14,440



2,477

Non-performing assets




134,783



117,030

Non-performing loans to total loans



2.58%



2.57%

Non-performing assets to total assets



1.89%



1.72%

Allowance for loan losses



$

73,996


$

72,688

Allowance for loan losses to total non-performing loans



61.49%



63.45%

Allowance for loan losses to total loans



1.59%



1.63%











AVERAGE BALANCE SHEET DATA:







Assets




$

7,101,853


$

6,799,124

Loans, net





4,584,512



4,353,520

Earning assets




6,358,860



6,083,357

Core deposits





4,068,187



3,619,897

Borrowings





900,785



933,654

Interest-bearing liabilities




5,408,985



5,268,172

Stockholders'  equity




961,136



928,279

Average yield on interest-earning assets



4.19%



4.58%

Average cost on interest-bearing liabilities



0.90%



1.23%











LOAN DATA:








Mortgage loans:









Residential




$

1,297,437


$

1,409,788


Commercial




1,262,756



1,205,432


Multi-family




572,491



411,385


Construction




118,714



105,576

Total mortgage loans




3,251,398



3,132,181


Commercial loans




834,211



759,573


Consumer loans




571,010



559,871

Total gross loans




4,656,619



4,451,625


Premium on purchased loans



5,621



6,843


Unearned discounts




(95)



(107)


Net deferred




(3,343)



(1,233)

Total loans




$

4,658,802


$

4,457,128

 

Notes



















(1) Efficiency Ratio Calculation













Three Months Ended







March 31,







2012



2011


Net interest income



$

54,837


$

53,447


Non-interest income



12,728



7,172


Total income:



$

67,565


$

60,619












Non-interest expense:


$

36,791


$

35,351












Expense/income:




54.45%



58.32%

 

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

Net Interest Margin Analysis

Quarterly Average Balances

(Unaudited) (Dollars in Thousands)






















March 31, 2012




December 31, 2011






Average




Average




Average




Average






Balance


Interest


Yield




Balance


Interest


Yield



Interest-Earning Assets:


















Deposits

$

19,412

$

12


0.25%



$

60,052

$

38


0.25%




Federal funds sold and


















  other short-term investments


1,264



0.03%




1,423



0.01%




Investment securities (1)


343,703


2,918


3.40%




348,128


2,991


3.45%




Securities available for sale


1,370,978


7,852


2.29%




1,313,249


7,295


2.22%




Federal Home Loan Bank stock


38,991


480


4.95%




38,099


394


4.11%




Net loans   (2)


















    Total mortgage loans


3,201,705


38,959


4.84%




3,175,644


39,306


4.90%




    Total commercial loans


818,192


10,370


5.05%




798,981


10,892


5.37%




     Total consumer loans


564,615


6,289


4.48%




553,755


6,348


4.55%




  Total Net loans


4,584,512


55,618


4.83%




4,528,380


56,546


4.94%




  Total Interest-Earning Assets

$

6,358,860

$

66,880


4.19%



$

6,289,331

$

67,264


4.24%





















Non-Interest Earning Assets:


















Cash and due from banks      


79,586








89,835








Other assets


663,407








662,826








Total Assets

$

7,101,853







$

7,041,992

























Interest-Bearing Liabilities:


















Demand deposits

$

2,507,930

$

2,783


0.45%



$

2,430,323

$

3,341


0.55%




Savings deposits


890,165


374


0.17%




882,074


543


0.24%




Time deposits


1,110,105


3,845


1.39%




1,151,708


4,229


1.46%




Total Deposits


4,508,200


7,002


0.62%




4,464,105


8,113


0.72%






















Borrowed funds


900,785


5,041


2.25%




888,027


5,240


2.34%




Total Interest-Bearing Liabilities

$

5,408,985

$

12,043


0.90%



$

5,352,132

$

13,353


0.99%





















Non-Interest Bearing Liabilities


731,732








735,297








Total Liabilities


6,140,717








6,087,429








Stockholders' equity


961,136








954,563








Total Liabilities and Stockholders' Equity

7,101,853







$

7,041,992

























Net interest income



$

54,837







$

53,911























Net interest rate spread






3.29%








3.25%



Net interest-earning assets

$

949,875







$

937,199

























Net interest margin    (3)






3.42%








3.39%



Ratio of interest-earning assets to

















      total interest-bearing liabilities


1.18

x







1.18

x








(1) Average outstanding balance amounts shown are amortized cost.

(2) Average outstanding balances are net of the allowance for loan losses, deferred loan fees and expenses, loan premiums and discounts and include non-accrual loans.

(3) Annualized net interest income divided by average interest-earning assets.


 

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

Net Interest Margin Analysis

Quarterly Average to Date Balances

(Unaudited) (Dollars in Thousands)




















March 31, 2012




March 31, 2011





Average



Average




Average



Average





Balance


Interest

Yield




Balance


Interest

Yield

Interest-Earning Assets:














Deposits

$

19,412

$

12

0.25%



$

14,633

$

9

0.25%


Federal funds sold and














     other short-term investments     


1,264


0.03%




1,341


0.01%


Investment securities  (1)


343,703


2,918

3.40%




342,689


3,093

3.61%


Securities available for sale


1,370,978


7,852

2.29%




1,334,201


8,970

2.69%


Federal Home Loan Bank stock


38,991


480

4.95%




36,973


524

5.75%


Net loans   (2)









.





     Total mortgage loans


3,201,705


38,959

4.84%




3,076,548


40,290

5.24%


     Total commercial loans


818,192


10,370

5.05%




716,603


10,082

5.66%


     Total consumer loans


564,615


6,289

4.48%




560,369


6,519

4.72%


  Total Net loans


4,584,512


55,618

4.83%




4,353,520


56,891

5.24%


  Total Interest-Earning Assets

$

6,358,860

$

66,880

4.19%



$

6,083,357

$

69,487

4.58%
















Non-Interest Earning Assets:














Cash and due from banks      


79,586







65,351





Other assets


663,407







650,416





Total Assets

$

7,101,853






$

6,799,124



















Interest-Bearing Liabilities:














Demand deposits

$

2,507,930

$

2,783

0.45%



$

2,168,211

$

3,998

0.75%


Savings deposits


890,165


374

0.17%




896,138


866

0.39%


Time deposits


1,110,105


3,845

1.39%




1,270,169


4,966

1.59%


Total Deposits


4,508,200


7,002

0.62%




4,334,518


9,830

0.92%

















Borrowed funds


900,785


5,041

2.25%




933,654


6,210

2.70%


   Total Interest-Bearing Liabilities

$

5,408,985

$

12,043

0.90%



$

5,268,172

$

16,040

1.23%
















Non-Interest Bearing Liabilities


731,732







602,673





Total Liabilities


6,140,717







5,870,845





Stockholders' equity


961,136







928,279





Total Liabilities and Stockholders' Equity

7,101,853






$

6,799,124



















Net interest income



$

54,837






$

53,447

















Net interest rate spread





3.29%







3.35%

Net interest-earning assets

$

949,875






$

815,185



















Net interest margin    (3)





3.42%







3.51%

Ratio of interest-earning assets to













      total interest-bearing liabilities


1.18

x






1.15

x




(1)     Average outstanding balance amounts shown are amortized cost.

(2)     Average outstanding balances are net of the allowance for loan losses, deferred loan fees and expenses, loan premiums and discounts and include non-accrual loans.

(3)     Annualized net interest income divided by average interest-earning assets.


 

The following table summarizes the quarterly net interest margin for the previous five quarters.
















3/31/12


12/31/11


9/30/11


6/30/11


3/31/11




1st Qtr.


4th Qtr.


3rd Qtr.


2nd Qtr.


1st Qtr.

Interest-Earning Assets:












Securities



2.54%


2.44%


2.81%


3.01%


2.91%

Net Loans



4.83%


4.94%


5.10%


5.16%


5.24%

    Total Interest-Earning Assets



4.19%


4.24%


4.45%


4.56%


4.58%













Interest-Bearing Liabilities:












Total Deposits



0.62%


0.72%


0.81%


0.89%


0.92%

Total Borrowings



2.25%


2.34%


2.50%


2.65%


2.70%

    Total Interest-Bearing Liabilities



0.90%


0.99%


1.10%


1.19%


1.23%













Interest Rate Spread



3.29%


3.25%


3.35%


3.37%


3.35%

Net Interest Margin



3.42%


3.39%


3.50%


3.53%


3.51%













Ratio of Interest-Earning Assets to Interest-Bearing Liabilities



1.18x


1.18x


1.16x


1.15x


1.15x














 

 

 

 

SOURCE Provident Financial Services, Inc.



RELATED LINKS
http://www.providentnj.com

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