Profile: Provident Financial Services Inc (PFS.N)
30 Nov 2016
Provident Financial Services Inc., incorporated on August 13, 2002, is a holding company for The Provident Bank (the Bank). The Bank is a New Jersey-chartered capital stock savings bank. As a community and customer-oriented institution, the Bank provides personal service and customer convenience in serving the financial needs of the individuals, families and businesses residing in its primary markets areas. The Bank attracts deposits from the general public and businesses in the areas surrounding its banking offices and uses those funds, together with funds generated from operations and borrowings, to originate commercial real estate loans, residential mortgage loans, commercial business loans and consumer loans. The Bank also invests in mortgage-backed securities and other permissible investments. It operates approximately 90 service branch offices in the New Jersey counties of Hudson, Bergen, Essex, Mercer, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Union and Warren, as well as in Bucks, Lehigh and Northampton counties in Pennsylvania.
The Bank's primary market area includes a mix of urban and suburban communities, and has a mix of industries, including pharmaceutical, manufacturing companies, network communications, insurance and financial services, healthcare and retail. The Company's subsidiary, Beacon Trust Company (Beacon) is engaged in providing wealth management and asset management services. In addition to its trust and estate administrative services, Beacon is also a provider of asset management services. Beacon offers a range of asset management services to individuals, municipalities, non-profits, corporations and pension funds. These services include investment management, asset allocation, trust and fiduciary services, financial planning, family office services, estate settlement services and custody.
The Bank originates commercial real estate loans, commercial business loans, fixed-rate and adjustable-rate mortgage loans collateralized by one- to four- family residential real estate and other consumer loans, for borrowers located within its primary market area. Residential mortgage loans are underwritten to standards that allow the sale of the loans to the secondary markets, primarily to the Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac), the Federal National Mortgage Association (FNMA or Fannie Mae) and the Federal Home Loan Bank of New York (FHLBNY). The Bank originates commercial real estate loans that are secured by income-producing properties, such as multi-family apartment buildings, office buildings, and retail and industrial properties.
The Bank provides construction loans for both single family and condominium projects intended for sale and commercial projects, including residential for rent projects. The Bank originates consumer loans that are secured by a borrower's assets. Home equity loans and home equity lines of credit that are secured by a first or second mortgage lien on the borrower's residence comprise the category of the Bank's consumer loan portfolio. Commercial loans are made to businesses of varying size and type within the Bank's market. The Bank lends to established businesses, and the loans are secured by business assets, such as equipment, receivables, inventory, real estate or marketable securities. The Bank makes unsecured commercial loans.
The Bank originates residential mortgage loans secured by first mortgages on one- to four- family residences located in the State of New Jersey. The Bank originates residential mortgages through commissioned mortgage representatives and through the Internet. The Bank originates both fixed-rate and adjustable-rate mortgages. The Bank's total residential real estate loans amounted to approximately $1.26 billion.
The Bank originates loans secured by mortgages on various commercial income producing properties, including multi-family apartment buildings, office buildings, and retail and industrial properties. The Bank's commercial mortgage loan is approximately $27.4 million loan secured by a first mortgage lien on over 380 room, full service hotel and approximately 420 car parking garage located in Elizabeth, New Jersey. The Bank underwrites loans secured by apartment buildings. The Bank considers multi-family lending a component of the commercial real estate lending portfolio. The Bank's multi-family loan is approximately $41.0 million loan secured by a first lease-hold mortgage lien on a newly renovated approximately 190-unit, over six story class A luxury rental apartment building with approximately 12,000 square feet of office/retail space located in Morristown, New Jersey.
The Bank originates commercial construction loans. Commercial construction lending includes both new construction of residential and commercial real estate projects and the reconstruction of existing structures. The Bank's commercial construction financing includes projects constructed for investment purposes (rental property), projects for sale (single family/condominiums) and owner-occupied business properties. The Bank's construction loan is approximately $23.8 million loan secured by a first mortgage lien on over 138,600 square foot freezer warehouse.
The Bank underwrites commercial loans to corporations, partnerships and other businesses. The Bank primarily offers commercial loans for equipment purchases, lines of credit for working capital purposes, letters of credit, asset-based lines of credit and real estate loans. The Bank also underwrites Small Business Administration (SBA) guaranteed loans and guaranteed or assisted loans through various state, county and municipal programs. The Bank's commercial loan is approximately $38.0 million line of credit to a general contracting company specializing in bridge and highway construction.
The Bank offers a range of consumer loans to individuals. Home equity loans and home equity lines of credit constituted approximately 93.7% of the consumer loan portfolio and indirect marine loans constituted over 3.3% of the consumer loan portfolio. The remaining 3% of the consumer loan portfolio includes personal loans and unsecured lines of credit, direct auto loans and recreational vehicle loans. The Bank's total loans amounted to approximately $6.54 billion.
The Bank's securities in the investment portfolio are classified as held to maturity, available for sale or held for trading. Securities that are classified as held to maturity are securities that the Bank or the Company has the intent and ability to hold until their contractual maturity date and are reported at cost. Securities that are classified as available for sale are reported at fair value. Available for sale securities include the United States Treasury and Agency obligations, the United States Agency and privately-issued collateralized mortgage obligations (CMOs), corporate debt obligations and equities. The Bank holds approximately $3.7 million in privately-issued CMOs in the investment portfolio. The Bank's total held to maturity with fair value amounted to approximately $488.33 million and total available for sale with fair value amounted to approximately $964.53 million.
Sources of Funds
The Bank's primary sources of funds consist of principal and interest cash flows received from loans and mortgage-backed securities, contractual maturities on investments, deposits, FHLBNY advances and proceeds from sales of loans and investments. These sources of funds are used for lending, investing and general corporate purposes, including acquisitions and common stock repurchases. The Bank offers a range of deposits for retail and business accounts. Deposit products include savings accounts, checking accounts, interest-bearing checking accounts, money market deposit accounts and certificate of deposit accounts. The Bank also offers individual retirement account (IRA) and KEOGH accounts. Business customers are offered various checking account and savings plans, cash management services, remote deposit capture services, payroll origination services, escrow account management and business credit cards. The Bank's total deposits amounted to approximately $5.92 billion.
The Bank has approximately $1.71 billion of borrowed funds. Borrowed funds consist of FHLBNY advances and repurchase agreements. The Bank uses wholesale repurchase agreements, as well as retail repurchase agreements as an investment vehicle for its commercial sweep checking product.
The Bank's subsidiaries include PFS Insurance Services, Inc., Dudley Investment Corporation, Bergen Avenue Realty, LLC, Bergen Avenue Realty PA, LLC and Beacon Trust Company. The Company's other subsidiaries include Team Capital Service Co., LLC and Team Capital NJ Investment Co. PFS Insurance Services, Inc. is a New Jersey licensed insurance producer that sells insurance and investment products, including annuities to customers through a third-party networking arrangement. Dudley Investment Corporation operates as a New Jersey Investment Company. Gregory Investment Corporation is a subsidiary of Dudley Investment Corporation. Gregory Investment Corporation operates as a Delaware Investment Company. PSB Funding Corporation is a subsidiary of Gregory Investment Corporation. PSB Funding Corporation is engaged in the business of a real estate investment trust.
Bergen Avenue Realty, LLC manages and sells real estate acquired through foreclosure. Bergen Avenue Realty PA, LLC manages and sells real estate acquired through foreclosure located in Pennsylvania. Beacon Investment Advisory Services, Inc. is a subsidiary of Beacon Trust Company, which is a registered investment advisor. Acertus Capital Management, LLC, is a subsidiary of Beacon Trust Company and is a registered investment advisor that manages over two private funds and serves as a sub-advisor to a mutual fund.
Provident Financial Services Inc
830 Bergen Ave
JERSEY CITY NJ 07306-4507