Yahoo Finance Provident Financial Services Inc (PFS) (Q1 2024) Earnings Call Transcript Highlights: Key ...
Earnings Per Share (EPS): Reported at $0.43 for the quarter.
Net Income: $32.1 million for the quarter.
Revenue: $114.5 million for the quarter.
Net Interest Margin: Decreased by 5 basis points to 2.87%.
Return on Average Assets: Annualized at 0.92%.
Return on Average Tangible Equity: Reported at 10.4%.
Tangible Book Value Per Share: Remained steady at $16.30.
Tangible Common Equity Ratio: Improved to 9.05%.
Quarterly Cash Dividend: Approved at $0.24 per share, payable on May 31.
Total Cost of Deposits: Reported at 2.07%.
Commercial Loans: Closed approximately $275 million during the quarter.
Provision for Credit Losses: Reduced, with a provision of $200,000 for the quarter.
Noninterest Income: Increased to $21 million this quarter.
Release Date: April 19, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Tom, just to clarify, so you said once the deal's closed, you're going to provide an update with deal marks and accretion numbers. Are you planning to do a call for that, or are you planning to put that out in a slide presentation, or what's your plan? A: Thomas Lyons - Provident Financial Services Inc - Senior Executive Vice President, Chief Financial Officer of Provident and Provident Bank: I think both of those will happen, Mark. The expectations will do some form of Investor Day post deal to describe the forward-looking performance expectations.
Q: Okay. And any update at all on timing, now that you've gotten all the approvals? A: Tony Labozzetta - Provident Financial Services Inc - President and Chief Executive Officer: Yeah, I think the timing right now is probably between the 10th and the 15th of May is when we're aiming to get the deal close.
Q: First, just to clarify, Tom, the comment on the combined company NIM of 3.25%, is that what we should be expecting for the first full run rate quarter in 3Q? A: Thomas Lyons - Provident Financial Services Inc - Senior Executive Vice President, Chief Financial Officer of Provident and Provident Bank: Every number I gave is a preliminary estimate all the way dependent on where the marks land at deal closing. So that assumed the marks that I disclosed. And yeah, that would be the first quarter of full closing, I guess, Q3, if the assumption's all true.
Q: Could you speak a little bit about the balance side of -- or the volume side of deposit growth channels, just where you're going to see improvement there? You talked about in the quarter that there was some payoff of brokered and there were some annuity outflows, but just where you expect to see deposits inflows going forward. A: Tony Labozzetta - Provident Financial Services Inc - President and Chief Executive Officer: So if you look at this quarter, I think the -- like I mentioned earlier, there wasn't any account closure activity that was of note. Most of the dynamics were normal activity in our non-Experian accounts, which is cash flowing out for whatever business purposes and some disintermediation going into other accounts. Where we're seeing the growth moving forward, and we're experiencing some of that, we're observing it, is largely in the business banking side. So we're seeing a lot of compensating balances and things of that nature.
Q: I appreciate that. And just on a separate topic, I just wanted to confirm the numbers that so far with the deal do not include revenue synergies at the moment? A: Thomas Lyons - Provident Financial Services Inc - Senior Executive Vice President, Chief Financial Officer of Provident and Provident Bank: That's correct.
Q: Hey, sorry about that, guys, my headset messed up. Thank you for all the updated financials impact. Do you guys have a projection on where capital levels will end up at the end of Q2 once you guys close the deal, particularly TCE and the total regulatory capital ratio? A: Thomas Lyons - Provident Financial Services Inc - Senior Executive Vice President, Chief Financial Officer of Provident and Provident Bank: Yeah, I don't know if we can go into much more detail than we already disclosed, Tim. I can assure you that there will be a comfortable cushion over the required limits that we agreed to as part of the nonstandard conditions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
