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Provident Financial Services Inc. Reports Operating Results (10-Q)

August 09, 2010 | About:
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10qk

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Provident Financial Services Inc. (PFS) filed Quarterly Report for the period ended 2010-06-30.

Provident Financial Services Inc. has a market cap of $734.67 million; its shares were traded at around $12.26 with a P/E ratio of 17.51 and P/S ratio of 2.27. The dividend yield of Provident Financial Services Inc. stocks is 3.59%. Provident Financial Services Inc. had an annual average earning growth of 8% over the past 5 years.PFS is in the portfolios of John Keeley of Keeley Fund Management, Kenneth Fisher of Fisher Asset Management, LLC, Chuck Royce of Royce& Associates.

Highlight of Business Operations:

Total net loans at June 30, 2010 decreased $57.8 million, or 1.3%, to $4.27 billion, compared to $4.32 billion at December 31, 2009. Loan originations totaled $497.3 million and loan purchases totaled $37.6 million for the six months ended June 30, 2010. Compared with December 31, 2009, residential mortgage loans decreased $59.2 million, construction loans decreased $52.7 million, consumer loans decreased $20.6 million and commercial loans decreased $40.8 million, while multi-family and commercial mortgage loans increased $63.6 million and $53.0 million, respectively. The decreases in residential mortgages and consumer loans reflect a lack of qualified loan demand, while the decrease in construction loans is representative of the slow real estate market. In addition, total residential mortgage loans decreased as a result of the sale of $11.0 million of newly-originated, primarily 30-year fixed-rate loans as part of the Companys interest rate risk management process.

Total stockholders equity increased $26.4 million, or 2.9%, to $910.9 million at June 30, 2010, from $884.6 million at December 31, 2009. This increase was primarily due to net income of $24.1 million, a net increase of $13.1 million in other comprehensive income and $2.6 million net increase in the allocation of shares to stock-based compensation plans. These increases were partially offset by $13.3 million in cash dividends. At June 30, 2010, book value per share and tangible book value per share were $15.20 and $9.26, respectively, compared with $14.79 and $8.80, respectively, at December 31, 2009.

General. The Company reported net income of $12.9 million, or $0.23 per basic and diluted share for the three months ended June 30, 2010, compared to net income of $6.3 million, or $0.11 per basic and diluted share for the three months ended June 30, 2009. For the six months ended June 30, 2010, the Company reported net income of $24.1 million, or $0.43 per basic and diluted share. Excluding a non-cash goodwill impairment charge recorded in the first quarter of 2009, net operating income for the six months ended June 30, 2009 was $15.2 million, or $0.27 per basic and diluted share. The Company recognized a $152.5 million, or $2.71 per share goodwill impairment charge during the quarter ended March 31, 2009. This accounting charge resulted in a net loss of $137.3 million, or $2.44 per basic and diluted share for the six months ended June 30, 2009.

Net Interest Income. Total net interest income increased $9.0 million, or 20.8%, to $52.1 million for the quarter ended June 30, 2010, from $43.2 million for the quarter ended June 30, 2009. For the six months ended June 30, 2010, total net interest income increased $15.8 million, or 18.2%, to $102.9 million, from $87.1 million for the same period in 2009. Interest income for the second quarter of 2010 decreased $0.3 million to $72.0 million from $72.3 million for the same period in 2009. For the six months ended June 30, 2010, interest income decreased $1.4 million to $144.4 million, from $145.8 million for the six months ended June 30, 2010. Interest expense decreased $9.2 million, or 31.8%, to $19.9 million for the quarter ended June 30, 2010, from $29.1 million for the quarter ended June 30, 2009. For the six months ended June 30, 2010, interest expense decreased $17.2 million, or 29.3%, to $41.5 million, from $58.7 million for the six months ended June 30, 2009. The improvement in net interest income for the three and six months ended June 30, 2010, versus the comparable 2009 periods, was attributable to the continued downward re-pricing of interest-bearing liabilities and the strategic repositioning of the deposit portfolio.

For the three months ended June 30, 2010, the average balance of net loans decreased $19.0 million to $4.26 billion, from $4.29 billion for the same period in 2009. Income on loans secured by real estate increased $545,000 to $40.2 million, or 1.4% for the three months ended June 30, 2010, from $39.7 million for the three months ended June 30, 2009. Interest income on commercial loans decreased $400,000 to $10.2 million, or 3.8% for the three months ended June 30, 2010, from $10.6 million for the three months ended June 30, 2009. Consumer loan interest income decreased $797,000, or 10.1%, to $7.1 million for the three months ended June 30, 2010, from $7.9 million for the three months ended June 30, 2009. The average loan yield for the three months ended June 30, 2010, decreased 3 basis points to 5.41%, from 5.44% for the same period in 2009.

For the six months ended June 30, 2010, the average balance of net loans decreased $47.5 million, or 1.0%, to $4.27 billion, from $4.32 billion for the same period in 2009. Income on loans secured by real estate decreased $346,000, or 0.4%, to $79.9 million for the six months ended June 30, 2010, from $80.3 million for the six months ended June 30, 2009. Interest income on commercial loans decreased $561,000, or 2.7%, to $20.5 million for the six months ended June 30, 2010, from $21.1 million for the six months ended June 30, 2009. Consumer loan interest income decreased $1.7 million, or 10.5%, to $14.4 million for the six months ended June 30, 2010, from $16.1 million for the six months ended June 30, 2009. The average loan yield for the six months ended June 30, 2010, decreased 6 basis points to 5.40%, from 5.46% for the same period in 2009.

Read the The complete Report

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