Provident Financial Services, Inc. (PFS) Bundle
A Brief History of Provident Financial Services, Inc. (PFS)
Foundation and Early Years
Provident Financial Services, Inc. was founded in 1839 as the Provident Savings Bank. It began its operations in New Jersey, focusing primarily on providing banking services to local residents.
Major Milestones
Key milestones in PFS's history include:
- In 1999, the bank converted from a mutual to a stock institution, leading to its incorporation as Provident Financial Services, Inc.
- By 2002, PFS had completed its initial public offering (IPO) with shares trading on the New York Stock Exchange under the symbol "PFS."
- In 2010, PFS completed its acquisition of North Jersey Community Bank for approximately $38 million, which significantly expanded its footprint in New Jersey.
- In 2018, PFS completed its merger with Unity Bank, further enhancing its market presence and increasing its assets to over $6.3 billion.
Financial Growth and Performance
As of the end of 2022, Provident Financial Services reported total assets of approximately $6.8 billion, with a net income of about $74 million.
Key financial metrics include:
| Year | Total Assets (in billions) | Net Income (in millions) | Return on Assets (%) | Return on Equity (%) |
|---|---|---|---|---|
| 2018 | $6.3 | $60 | 0.95% | 9.02% |
| 2019 | $6.5 | $66 | 1.02% | 9.34% |
| 2020 | $6.6 | $68 | 1.03% | 9.57% |
| 2021 | $6.7 | $70 | 1.04% | 9.72% |
| 2022 | $6.8 | $74 | 1.08% | 10.11% |
Corporate Structure and Governance
PFS operates as the holding company for Provident Bank. Its corporate governance structure includes a Board of Directors consisting of experienced professionals with diverse backgrounds in finance, banking, and community service. As of 2023, Provident Financial Services had approximately 220 employees.
Community Engagement and Corporate Social Responsibility
Provident Financial Services participates actively in community development initiatives. In 2021, the company donated approximately $1 million to local charities and non-profit organizations.
PFS has also committed to various sustainability goals and strives to improve financial literacy among the communities it serves.
Recent Developments and Future Outlook
Recent strategic initiatives include the introduction of digital banking services and enhanced customer service programs. As of the first quarter of 2023, PFS reported a growth in digital banking users by approximately 30% year-over-year.
Analysts anticipate continued growth in the coming years, supported by a strong balance sheet and expanding service offerings.
A Who Owns Provident Financial Services, Inc. (PFS)
Overview of Ownership Structure
Overview of Ownership Structure
As of the latest available data, Provident Financial Services, Inc. (PFS) has a multifaceted ownership structure, primarily comprising institutional investors, retail investors, and insiders. Institutional ownership remains significant, reflecting confidence in the company’s performance and strategy.
Institutional Ownership
According to the data from the latest quarterly reports, institutional shareholders own approximately 63.27% of the total shares outstanding. The following table summarizes some of the major institutional shareholders:
| Institution Name | Shares Owned | Percentage of Total |
|---|---|---|
| The Vanguard Group, Inc. | 2,053,482 | 10.24% |
| BlackRock, Inc. | 1,832,476 | 9.15% |
| Dimensional Fund Advisors LP | 1,378,738 | 6.64% |
| FMR LLC (Fidelity) | 1,215,780 | 5.98% |
| State Street Corporation | 1,010,365 | 4.96% |
Retail Ownership
Retail investors account for about 36.73% of Provident Financial Services, Inc.’s ownership. This portion is comprised primarily of individual shareholders who hold smaller amounts of shares compared to institutional investors.
Insider Ownership
Insider ownership is another critical component of PFS’s ownership structure, representing around 4.2% of the total shares. This includes shares owned by executives and directors. Below is a table with key insider holdings:
| Name | Position | Shares Owned |
|---|---|---|
| George A. D. R. Decker | President & CEO | 250,000 |
| Michael B. F. Adams | CFO | 50,000 |
| Mary J. McGowan | Director | 30,000 |
| Thomas A. H. McCarthy | Director | 20,000 |
| Elizabeth M. S. Smith | Director | 15,000 |
Shareholder Composition
The following list summarizes the shareholder composition of Provident Financial Services, Inc.:
- Institutional Investors: 63.27%
- Retail Investors: 36.73%
- Insider Ownership: 4.2%
Recent Share Price and Market Capitalization
As of the most recent trading session, the stock price of PFS is approximately $23.50, with a market capitalization of about $1.1 billion. This data reflects the ongoing evaluation of the company's financial health and market perception.
Performance Metrics
Provident Financial Services, Inc. has shown a consistent performance with the following key financial metrics:
- Return on Equity (ROE): 10.62%
- Earnings Per Share (EPS): $2.21
- Dividend Yield: 3.2%
Conclusion of Ownership Analysis
The ownership dynamics of Provident Financial Services, Inc. reflect a robust mix of institutional and retail investors, with insider ownership providing added confidence in the management's commitment to the company's growth strategy.
Provident Financial Services, Inc. (PFS) Mission Statement
Overview
Overview
The mission statement of Provident Financial Services, Inc. emphasizes their commitment to providing high-quality financial services while maintaining strong relationships with customers and communities. Their vision aligns with delivering exceptional banking experiences through innovation and integrity.
Core Values
- Customer Commitment: Focused on delivering superior service to meet customer needs.
- Integrity: Upholding ethical standards in all dealings.
- Teamwork: Collaborating to achieve shared goals.
- Innovation: Seeking creative solutions to enhance customer experience.
Financial Performance
As of December 31, 2022, Providence Financial Services reported the following key financial data:
| Metric | Amount |
|---|---|
| Total Assets | $7.53 billion |
| Total Deposits | $6.24 billion |
| Net Income | $54.3 million |
| Earnings per Share (EPS) | $1.12 |
| Return on Assets (ROA) | 0.71% |
| Return on Equity (ROE) | 8.07% |
Community Engagement
Provident Financial Services actively participates in community development through various initiatives:
- Investment in local businesses through loans and financial support.
- Community service programs aimed at improving local living conditions.
- Sponsorship of educational programs and scholarships for students.
Strategic Goals
PFS has laid out its strategic goals to enhance its market position:
- Increase customer base by 15% over the next five years.
- Expand digital banking services to improve accessibility.
- Achieve a 10% growth in net income annually.
Customer Experience Focus
The organization aims to provide excellence in customer experience through:
- Enhanced online banking features.
- Personalized financial advice services.
- 24/7 customer support availability.
Company Vision
Provident Financial Services envisions a company culture that prioritizes:
- Employee development and satisfaction.
- Commitment to sustainability and responsible banking practices.
- Long-term financial stability and growth.
Current Market Position
As of 2023, Provident Financial Services is strategically positioned in the market:
| Market Position Indicator | Value |
|---|---|
| Market Share | 3.5% |
| Branches Operated | 40 |
| Employees | 500+ |
| Net Loans | $4.1 billion |
| Non-Performing Assets (NPA) | 0.35% |
How Provident Financial Services, Inc. (PFS) Works
Company Overview
Provident Financial Services, Inc. operates primarily through its subsidiary, Provident Bank, which is based in Jersey City, New Jersey. The institution primarily focuses on traditional banking services.
Business Model
The business model of PFS revolves around providing a variety of financial products to its clients, which include:
- Residential and commercial real estate loans
- Consumer loans
- Deposit accounts including savings and checking
- Wealth management services
Financial Performance
As of Q3 2023, Provident Financial Services recorded total assets of approximately $6.9 billion.
| Financial Metric | Value (as of Q3 2023) |
|---|---|
| Total Assets | $6.9 billion |
| Total Liabilities | $6.2 billion |
| Shareholders' Equity | $720 million |
| Net Income | $18 million |
| Return on Assets (ROA) | 0.26% |
| Return on Equity (ROE) | 10.00% |
Loan Portfolio
PFS’s loan portfolio is diversified and includes:
- Residential Mortgages: 63% of the total loan portfolio
- Commercial Real Estate: 22%
- Consumer Loans: 10%
- Commercial and Industrial Loans: 5%
Deposit Growth
Provident Bank’s deposits have shown consistent growth, amounting to $5.8 billion as of Q3 2023, with a year-over-year increase of approximately 6%.
| Deposit Type | Amount (as of Q3 2023) |
|---|---|
| Demand Deposits | $2.3 billion |
| Savings Accounts | $1.5 billion |
| Time Deposits | $1.0 billion |
| Other Deposits | $1.0 billion |
Risk Management
PFS implements a robust risk management framework, focusing on:
- Credit Risk Management
- Market Risk Assessment
- Operational Risk Controls
Market Position
Provident Financial Services, Inc. holds a significant market position in the New Jersey area, with a presence across several counties. It is recognized for its customer-centric approach.
Stock Performance
The stock of Provident Financial Services is traded on the New York Stock Exchange under the ticker symbol PFS.
As of October 2023, the stock price stands at approximately $17.45, with a market capitalization of around $810 million.
| Stock Metric | Value |
|---|---|
| Current Stock Price | $17.45 |
| Market Capitalization | $810 million |
| P/E Ratio | 12.5 |
| Dividend Yield | 3.25% |
Future Outlook
The outlook for Provident Financial Services remains positive, with anticipated growth driven by:
- Expansion of loan offerings
- Increased customer base
- Technological advancements in banking services
How Provident Financial Services, Inc. (PFS) Makes Money
Overview of Revenue Streams
Provident Financial Services, Inc. (PFS) primarily generates revenue through several key avenues, including interest income, non-interest income, and various banking services.
Interest Income
The most significant source of revenue for PFS is interest income derived from its loan portfolio. As of Q2 2023, the company reported a total interest income of approximately $121 million.
- Loan Portfolio: Comprises residential mortgages, commercial real estate loans, and consumer loans.
- Average Yield on Loans: Around 4.25%.
Non-Interest Income
PFS also generates non-interest income from a variety of services and fees. For Q2 2023, non-interest income totaled approximately $17 million.
- Service Charges: Contributed $7 million.
- Investment Gains: Accounted for $5 million.
- Other Income: About $5 million.
Core Banking Services
PFS offers various banking products, including checking accounts, savings accounts, and personal loans, which contribute to both interest and non-interest income.
- Deposits: Total deposits were approximately $4.5 billion.
- Average Interest Rate on Deposits: Approximately 0.50%.
Investment Operations
PFS invests in securities, including U.S. Treasury securities, municipal bonds, and corporate debt, which provides additional revenue.
- Investment Portfolio: Valued at around $2.3 billion.
- Average Yield on Investments: Approximately 2.10%.
Loan Originations
During 2022, PFS originated approximately $1.1 billion in loans, highlighting its active lending practices.
| Loan Type | Amount Originated | Percentage of Total |
|---|---|---|
| Residential Mortgages | $600 million | 54% |
| Commercial Real Estate | $300 million | 27% |
| Consumer Loans | $200 million | 18% |
Cost Management and Efficiency
Effective cost management plays a vital role in enhancing profitability. For Q2 2023, PFS reported non-interest expenses of approximately $45 million.
- Efficiency Ratio: Estimated at 55%, indicating operational efficiency.
- Employee Count: Approximately 350 employees, contributing to operational costs.
Market Performance
PFS’s stock price as of October 2023 is approximately $20.50, reflecting the company's market valuation and investor confidence.
- Market Capitalization: Estimated at $1 billion.
- Dividend Yield: Approximately 3.20%.
Challenges and Risks
The company faces various challenges, including market volatility and regulatory changes that could impact earnings.
- Loan Default Rate: Reported at 0.75%.
- Regulatory Capital Ratio: Maintained at a healthy 11.5%.
Provident Financial Services, Inc. (PFS) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support