EX-99.1 2 dex991.htm SLIDE PRESENTATION Slide presentation
2007 Annual Meeting
2007 Annual Meeting
of Stockholders
of Stockholders
April 25, 2007
April 25, 2007
Focused on
Long-term
Stockholder
Value
Focused on
Long-term
Stockholder
Value
1
Exhibit 99.1

2
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 Provident
Financial Services,
Inc. (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 wishes to caution readers not to place undue reliance on any such
forward-looking statements, which speak only as of the date made. The Company
wishes to advise 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.
Forward Looking Statements
Forward Looking Statements
Focused on
Long-term
Stockholder
Value
Focused on
Long-term
Stockholder
Value

3
Company Profile
(as of 3/31/07)
NYSE Symbol:
PFS
Assets:
$5.7 billion
Market Capitalization:
$1.1 billion
Market Presence
Market Presence:
4
th
Largest Bank
Headquartered in
New Jersey
*
Primary Market Area:
Northern and
Central Region
Focused on
Long-term
Stockholder
Value
Focused on
Long-term
Stockholder
Value
*Source:  SNL Financial as per
FDIC/SOD at 6/30/06

4
Financial Highlights
Focused on
Long-term
Stockholder
Value
Focused on
Long-term
Stockholder
Value
(Dollars in thousands)
INCOME STATEMENT:
3/31/07
3/31/06
Net income
$10,808
$13,802
Diluted earnings per share
$0.18
$0.22
Return on equity
(annualized)
4.32%
5.22%
Return on assets
(annualized)
0.77%
0.94%
Net interest margin
3.02%
3.31%
Efficiency ratio
65.18%
59.56%

5
Financial Highlights
Focused on
Long-term
Stockholder
Value
Focused on
Long-term
Stockholder
Value
(Dollars in thousands)
BALANCE SHEET:
3/31/07
12/31/06
Total assets
$5,696,033
$5,742,964
Total loans (gross)
$3,765,204
$3,783,664
Total deposits
$3,810,565
$3,826,463
Total investments
$1,146,717
$1,215,885
Total borrowings
$815,083
$840,990
Total stockholders' equity
$1,015,449
$1,019,156

6
Comparative
Yield Curve
A
Challenging
Interest-Rate
Environment
A
Challenging
Interest-Rate
Environment
5.25%
4.98%
5.04%
4.65%
4.59%
4.59%
4.67%
4.83%
5.14%
5.09%
5.12%
5.15%
5.23%
5.25%
4.98%
5.19%
3.77%
3.07%
2.68%
1.64%
1.26%
1.25%
4.58%
5.29%
0.50%
1.50%
2.50%
3.50%
4.50%
5.50%
6.50%
FF
3 mo
6 mo
2 yr.
3 yr.
5 yr.
10 yr.
30 yr.
Current  4/18/07
6/30/06
6/30/04

7
Net Interest Rate Spread
4.00%
4.40%
4.80%
5.20%
5.60%
6.00%
6.40%
Dec-05
Mar-06
Jun-06
Sep-06
Dec-06
Mar-07
2.00%
2.40%
2.80%
3.20%
3.60%
4.00%
Yield on Earning Assets
Rate Paid on Liabilities
Spread 
2.92%
Spread 
2.91%
Spread 
2.93%
Spread 
2.87%
Spread 
2.63%
Spread 
2.54%
A
Challenging
Interest-Rate
Environment
A
Challenging
Interest-Rate
Environment
Liability Costs have risen faster than Asset Yields

8
Net Interest Margin
$37.3
$38.5
$47.2
$46.0
$44.8
$43.5
$43.4
$42.7
$39.9
3.02%
3.08%
3.34%
3.31%
3.38%
3.33%
3.28%
3.31%
3.27%
1Q05
2Q05
3Q05
4Q05
1Q06
2Q06
3Q06
4Q06
1Q07
Net Interest Income (in millions)
Net Interest Margin (%)
Strategic decision in late 2006 to preserve deposit market
share via competitive rate offerings
A
Challenging
Interest-Rate
Environment
A
Challenging
Interest-Rate
Environment

9
Strategic Priorities
Concentrate on the fundamentals of our
business
Core revenue drivers
Balance sheet management
Expense management
Asset quality
Capital management
Build superior products, services and delivery
channels for commercial, small-business and
retail customers
Expand the franchise in demographically
attractive markets
Focused
on
Clear
Strategy
and
Effective
Execution

10
Loan Portfolio Composition
12/31/04
Commercial
Loans
35.6%
Retail Loans
64.4%
3/31/07
Retail Loans
58.5%
Commercial
Loans
41.5%
Building Commercial
Loans as Key Interest-
Earning Assets
Focused
on
Fundamentals
__________
Core
Revenue
Drivers
12/31/05
Commercial
Loans
37.5%
Retail Loans
62.5%

11
Focused
on
Fundamentals
__________
Core
Revenue
Drivers
$581.4
$748.3
$831.5
0
100
200
300
400
500
600
700
800
900
2004
2005
2006
Commercial Loan Originations
Increasing Commercial Loan Originations
$ in millions

12
Focused
on
Fundamentals
__________
Core
Revenue
Drivers
12/31/04
Time
Deposits
34.4%
Savings,
DDA,
MMA
65.6%
3/31/07
Time
Deposits
41.0%
Savings,
DDA,
MMA
59.0%
Deposit Mix
Striving to Maintain
Core Deposit
Emphasis in a
Challenging
Environment
12/31/05
Savings,
DDA,
MMA
63.1%
Time
Deposits
37.9%

13
Focused
on
Fundamentals
__________
Core
Revenue
Drivers
15.4%
16.7%
17.7%
12.0%
13.0%
14.0%
15.0%
16.0%
17.0%
18.0%
19.0%
3/31/05
3/31/06
3/31/07
Commercial & Municipal Deposits/Total Core Deposits
Increasing Proportion of Core Commercial
Deposits and Municipal Deposits

14
Continued Reduction in Investment Securities and
Wholesale Borrowings to Manage Interest Rate Risk
* Excludes Subordinated Debentures
($ in millions)
$1,708
$1,635
$1,538
$1,451
$1,327
$1,270
$1,216
$1,147
$1,109
$1,100
$1,048
$970
$822
$784
$841
$1,782
$815
$875
1Q05
2Q05
3Q05
4Q05
1Q06
2Q06
3Q06
4Q06
1Q07
Investment Securities
Borrowings*
Focused
on
Fundamentals
__________
Core
Revenue
Drivers

15
Focused
on
Fundamentals
__________
Core
Revenue
Drivers
Focus on Loan Growth to Drive Revenue
$3,660
$3,660
$3,661
$3,690
$3,720
$3,716
$3,655
$3,732
$3,740
73.9%
66.7%
67.7%
68.9%
70.9%
72.6%
65.8%
74.7%
75.8%
1Q05
2Q05
3Q05
4Q05
1Q06
2Q06
3Q06
4Q06
1Q07
Avg
Net Loans (in millions)
Loans as a % of Avg
Earning Assets

16
$31.4
$33.2
$30.0
$29.5
$30.2
$29.9
$30.1
$29.3
$28.0
898
893
874
892
895
913
915
877
881
1Q05
2Q05
3Q05
4Q05
1Q06
2Q06
3Q06
4Q06
1Q07
Non-Interest Expense (in millions)
# of FTEs
Includes $1.4
million voluntary
resignation
initiative
Managing Overhead Costs to Drive Efficiency
Focused
on
Fundamentals
__________
Expense
Management

17
Maintaining Efficiency Ratio in Line with
Industry Peer Trends
Focused
on
Fundamentals
__________
Expense
Management
*Source: SNL Financial.  Note: Mid-Atlantic
Bank & Thrift data for 1Q07 is preliminary
based on companies reporting as of 4/20/07.
63.7%
63.2%
64.1%
65.2%
65.8%
64.1%
63.8%
63.7%
64.1%
65.2%
59.0%
62.4%
59.9%
59.6%
57.7%
57.1%
62.1%
58.8%
56%
59%
62%
65%
68%
71%
74%
77%
1Q05
2Q05
3Q05
4Q05
1Q06
2Q06
3Q06
4Q06
1Q07
Mid-Atlantic Banks & Thrifts*
PFS

18
$7,595
$5,662
$6,005
$5,790
$6,802
$7,549
0.20%
0.16%
0.16%
0.15%
0.18%
0.20%
Dec-05
Mar-06
Jun-06
Sep-06
Dec-06
Mar-07
Non-Performing Loans
Non-Performing Loans/Total Loans
Continuing Adherence to Sound Credit
Underwriting Standards
Focused
on
Fundamentals
__________
Asset
Quality

19
Non-performing Assets as a % of Total Assets
0.27%
0.25%
0.22%
0.24%
0.27%
0.25%
0.28%
0.23%
0.25%
0.15%
0.14%
0.12%
0.10%
0.10%
0.11%
0.11%
0.13%
0.09%
1Q05
2Q05
3Q05
4Q05
1Q06
2Q06
3Q06
4Q06
1Q07
Mid-Atlantic Banks & Thrifts
PFS
Continuing Asset Quality Trend Ahead of
Industry Peers
*Source: SNL Financial. Note: Mid-Atlantic
Bank & Thrift data for 1Q07 is preliminary
based on companies reporting as of 4/20/07.
Focused
on
Fundamentals
__________
Asset
Quality

20
Focused
on
Fundamentals
__________
Capital
Management
Share Repurchases
5
th
Board-Authorized Repurchase Program –
July 2006
Approximately 3.3 million shares authorized for
repurchase
Approximately 2.5 million shares left for
repurchase as of March 31, 2007
Approximately 5.5 million shares repurchased in
2006
Approximately 682 thousand shares repurchased
1stQ 2007
Approximately 15.5 million shares repurchased since
IPO January 2003

21
Quarterly Cash Dividends
Current Dividend Yield = 2.27% (based on $17.59) share price as of 4/20/07
Focused
on
Fundamentals
__________
Capital
Management
History of Cash Dividend Increases To-Date
$0.04
$0.05
$0.06
$0.07
$0.08
$0.09
$0.10
$0.00
$0.02
$0.04
$0.06
$0.08
$0.10
$0.12
Apr-03
July-03
Jan-04
Jan-05
Apr-05
Oct-05
Apr-06

22
Building superior products, services and delivery
channels for commercial and small-business
customers
Remote deposit capture
Dedicated cash management support
group
Automated wire transfers
Enhanced escrow account products
Ongoing enhancements to government
account products
Focused
on
Fundamentals
__________
Competitive
Business
Services

23
Building superior products, services and delivery
channels for retail customers
Platinum level service
Rewards points loyalty program
Integrated deposit origination platform
Allpoint
ATM network
32,000+ surcharge-free ATM’s nationwide
Focused
on
Fundamentals
__________
Competitive
Retail
Services

24
Continuing Emphasis on Franchise
Expansion in Attractive Markets
Source:  SNL Financial as per FDIC/SOD at 6/30/06. 
Data is pro-forma for pending mergers and excludes
brokerage/institutional deposits.
* Source:  SNL
Financial/ESRI
Focused
on
Profitable
Franchise
Expansion
2006 Median Household
Income *
Projected Growth
2006 -
2011 (%)*
Middlesex
$75,672
16.62
Monmouth
$78,682
19.07
Morris
$96,695
19.53
NJ State Median
$66,848
17.05
U.S. National Median
$51,546
17.77
Middlesex
Monmouth
Morris
New Jersey
Provident Deposit Market Share Rank*
# 9 of 155 Institutions
# 5 of 45 Institutions
# 11 of 32 Institutions
# 8 of 34 Institutions (Pro-Forma)

25
Richmond
Westchester
New York
Warren
Sussex
Montgomery
Philadelphia
Bucks
Burlington
Passaic
Morris
Bergen
Somerset
Middlesex
Monmouth
Ocean
Essex
Hudson
Hunterdon
Mercer
Union
Bronx
Kings
Nassau
Queens
Provident Branches at 3/31/07
Former First Morris Branches
Enhanced
Presence in
Attractive
Morris
County
Market
Focused
on
Profitable
Franchise
Expansion

26
Looking Ahead
Positioned to take advantage of return to
normalized yield curve
Anticipate increased new branch activity in
conjunction with branch rationalization
Redoubling efforts to expand small-business
customer relationships
Ongoing adherence to Strategic Priorities
Continuous process improvements to wring
out additional efficiencies and enable
expansion of revenue producers
Focused
on
Clear
Strategy
and
Effective
Execution

27
Looking Ahead
Continue to Seek Out Accretive Acquisition
Opportunities
Focus on existing footprint and
contiguous markets
Potential transactions must be additive
to franchise and earnings
Must add long-term stockholder value
Focused
on
Clear
Strategy
and
Effective
Execution

2007 Annual Meeting
2007 Annual Meeting
of Stockholders
of Stockholders
April 25, 2007
April 25, 2007
Focused on
Long-term
Stockholder
Value
Focused on
Focused on
Long-term
Long-term
Stockholder
Stockholder
Value
Value
28