Subscribe Now

travelers today

Home » Trending News

Provident Financial Not Seeking Buys After Team Capital Acquisition, CEO Says

Travelers Today       By    Ricardo Kaulessar

Updated: Jan 30, 2014 08:40 AM EST

Text Size: A A A

Provident Bank
(Photo : Flickr)

Share This Story

Provident Financial Services, the Jersey City, New Jersey-based holding company for Provident Bank, will be opportunistic for acquisitions in 2014 and beyond but is not actively looking for buys following the recent purchase of Team Capital Bank, CEO Christopher Martin said.

Provident Financial, with $921.1 million book value, has no set timeframe on when it will make its next purchase following the acquisition in December of Bethlehem, Pennsylvania-based Team Capital but will continue to be on the hunt for targets primarily in eastern Pennsylvania and in Huntington and Warren counties in New Jersey, Martin said in a recent interview.

Those areas are where Provident Financial has increased its presence as a result of the Team Capital deal, which will bring in 12 branches and $949 million in assets when the $122 million acquisition closes in 2Q14. Provident will have $8.3 billion in assets and 91 locations in New Jersey and Pennsylvania after the deal closes.

He said that Provident Financial will lean more towards Pennsylvania because there is a lot less competition amongst banks in that state as opposed to New Jersey, which he said had an over-competitive banking market in terms of vying for customers for Provident. Martin said Provident's competitors ranged from too-big-to-fail banks such as Wells Fargo and TD Bank to more regional institutions including Valley National Bank and Investors Bancorp.

He also said Pennsylvania is more business-friendly than New Jersey, which has led to some of Provident's corporate clients moving to the Keystone state. Specifically, the company is looking at the area surrounding the Pennsylvania city of Allentown, which Martin said is a growing city that has rebounded from years of decline.

The size of any targets will probably be in the same asset-size range as Team Capital, according to Martin, although he points out that the bank wouldn't have any problems acquiring a larger-size bank just as it did back in 2003 when it purchased First Sentinel Bancorp, a bank that had $2.2 billion in assets at that time. He then said Provident will look to make any buys in the future with a combination of cash and stock just as it did with the Team Capital deal.

Provident was advised in the Team Capital acquisition by financial advisory firm RBC Capital Markets and law firm Luse, Gorman, Pomerenk and Schick while Team Capital retained Keefe Bruyette & Woods on the financial side and Windels, Marx, Lane & Mittendorf for the legal side. Martin said it was not sure about the financial advisor the company will use for a future acquisition since there has been a different advisor on each of its four acquisitions, but it will continue to work with Luse, Gorman, Pomerenk and Schick as it has had a longstanding professional relationship with the law firm.

When asked why Provident has made only four acquisitions in the past ten years, Martin said it's because Provident likes to take a disciplined approach in its acquiring. He explained that Provident looks more at how a purchase can help the bank achieve total shareholder value and how it will be a good fit more so than how it will increase its assets. Provident acquired Beacon Trust Company & Beacon Global Asset Management in 2011 and First Morris Bank & Trust, $570 million asset-size bank, in 2006.

An industry analyst said Provident could make a buy as soon as early 2015 because the Team Capital purchase will be small enough for Provident integrate into its operations to allow for the company to go looking for acquisitions in 2014.  However, a second industry analyst said the company is usually pretty cautious when it makes any buys and will take its time to find the right one.

Both analysts agreed that a potential target for Provident will be Fox Chase Bancorp, the holding company for Hatboro, Pennsylvania-based Fox Chase Bank. The first analyst said the $1.1 billion asset-size bank fits Provident's plans to establish a greater foothold in Pennsylvania, and the second analyst said Fox Chase will be a good buy as Provident will look for any future target that is between $1 billion to $1.5 billion and Fox Chase has a management team that has carried out sales of banks before.

As far as the rest of its growth strategy, Martin said Provident looks to get to $8.7 billion by the end of 2014, which will come not only from the assets gained from the acquisition but also by continued growth in non-interest bearing deposits and through its personal and business lending.

Provident has $1.2 billion market cap, trades at 1.3x book value, and its stock traded recently at $19.45 per share.

© 2014 Traverlers Today, All rights reserved. Do not reproduce without permission.
Featured Video : Travel Expert Stefanie Michaels aka 'Adventure Girl' Reveals Her Favorite Fourth of July Destinations
Join Our Conversation

ADVERTISEMENT

Travel Tips

Mickey Pool

Disney Cruises 2015: From Transatlantic Sails To Caribbean Cruises

The magic of Disney isn’t only stationary in its theme parks scattered over the globe. In fact, Disney offers a number of destinations for the Disney Cruises 2015. From Caribbean cruises to sails in the Transatlantic, here are all the destinations offered by Disney Cruises 2015.

Subscribe to our newsletter

Receive the latest travel news, reviews, and more..

Want more Travel?

Most Popular

Suchomimus Swimming

First Swimming Dinosaur Found: 50 Feet Spinosaurus Fossil Unearthed in Morocco

First swimming dinosaur found- A new horde of fossils have been unearthed from the Sahara revealing that the largest known predator to walk the earth was also an excellent swimmer.

Behind The Scenes At The Invictus Games

Camilla Thurlow And Prince Harry: Another Royal Couple In The Making, Possible Marriage?

Camilla Thurlow and Prince Harry are becoming the next couple watched by many. Will the couple become the next official royal couple stepping into marriage? Fans could only hope. Meanwhile, Camilla Thurlow recently expressed her disappointment for Prince Harry’s 30th birthday party being called off.

Two Vietnam Vets Honored: American Soldiers Awarded with Medal of Honor Decades after Gallantry

Two Vietnam Vets Honored: American Soldiers Awarded with Medal of Honor Decades after Gallantry

Two Vietnam vets honored - President Barack Obama reportedly bestowed the Medal of Honor, America’s highest military honor, on Monday, to a pair -one living and one who died in battle - of soldiers who fought in the Vietnam War.

manchineel - hippomane manchinella fruit - 1-2

Manchineel Tree Florida: One Of The World's Most Dangerous Tree

Mother Nature may be the source for every human need however there are a few elements in it that are dangerous to the lives of humans. Out of the ten most dangerous plants in the world, there is one tree that humans don’t need to touch to feel its effects. This is none other than the Manchineel Tree Florida.

In this handout from NASA/Solar Dynamics Observatory, a solar large flare erupts off the sun June 7, 2011 in space.

Solar Flares Today 2014: 'Extreme' Solar Flare Hit Earth, Aurora Borealis Friday? How Is The Earth Affected?

Solar flares today 2014 appear to be growing stronger. According to multiple reports, one of the solar flares today 2014 that erupted from the sun toward Earth are the X-Class kind, which is known to be extreme and the most dangerous kind. The flare hit the Earth yesterday and another one will be hitting the planet today, which could reportedly cause an Aurora Borealis phenomenon.

Lake Tahoe, NV, Sand Harbor (2) 9-2010

Lake Tahoe Earthquake Today: Magnitude-3.5 Earthquake Rattles Near Tahoe Vista, Calif.

Lake Tahoe earthquake today rattled near Tahoe Vista, Calif. and fortunately, it wasn’t strong to have produced injuries to residents of the area. According to multiple reports the, the Lake Tahoe earthquake today was of a magnitude 3.5.

Italy, Campania, Napoli district, Capri, Faraglioni, Seascape with rocks

Isola La Gaiola: The Cursed Island In Italy

Italy is filled with beautiful tourist spots such as the impressive structures of the Leaning Tower of Pisa. While some of the tourist spots in Italy are open to the public, there is one island that despite its’ beauty is said to be cursed. Isola La Gaiola found in the province of Naples is allegedly cursed.

Find Us on Facebook

travelers today

© Copyright 2014 Travelers Today All Rights Reserved.

Subscribe to our newsletter
Real Time Analytics