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.
Join Our Conversation

ADVERTISEMENT

Travel Tips

Prince Edward Island, Canada

Fall Cruises: Better Than Land Tours? It Gives Guests ‘A European Experience Without Leaving North America’

Fall cruises for foliage in the northeast are now becoming more and more popular as each year goes by. The foliage that is part of the tour is unlike any other place in the country. In fact, more guests are even paying good money to cruise the rivers, as well as the oceans, in order to peep leaves instead of having to brave today’s highly crowded roads and hotels on land.

Subscribe to our newsletter

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

Want more Travel?

Most Popular

Daniela Poggiali

Nurse Kills 38 Patients Because She Got Annoyed; Co-Workers Say Italian Nurse Daniela Poggiali Is 'Cynical And Vindictive'

Nurse Kills 38 Patients - Italian nurse Daniela Poggiali is one healthcare professional you should be wary of if ever you get confined in a hospital in Italy. For one thing, she is notorious for killing up to 38 patients after she got completely annoyed of them or of their families.

Cattle Return From Alpine Summer Grazing

World's Tallest Cattle Found In Illinois, How Tall Is Blosom The Cow?

World’s tallest cattle is found in Illinois. Owned by Patty Hanson, Blosom the cow has been named Guinness World Records’ tallest cow. How big and tall exactly is Blosom?

Grizzly Bear

Man, 56, Attacked By Bear Shot Accidentally By Hunting Partner Who Tried To Save Him From The Beast

A man attacked by bear was shot by his friend while the latter was attempting to spare him from the brutal attack of the beast.

Debris field spotted on radar at time of the Louisiana loud boom

Louisiana Loud Boom: Mysterious ‘Sonic Boom’ In The Sky Rattles Residents, ‘Debris Field’ Spotted, What Is The ArkLaTex ‘Boom’?

The Louisiana loud boom which was heard and rattled many north eastern Louisiana residents is as of this moment still left unexplained. However, now the National Weather Service has added that whatever the cause of the Louisiana loud boom, it has left a debris field.

Illness Observation

Ebola Airborne CDC: Widespread Outbreak Possible, More Contagious Virus Than Thought

The Executive director of the Association of American Physicians and Surgeons, Dr. Jane Orient, claimed the world is dealing a different kind of Ebola virus, one which is more potent and can be transmitted in air via droplets.

Brazil is currently treating and monitoring its first suspected case of Ebola. A 47 year-old man from Guinea reportedly manifest fever withing the 21 day-incubation period of the virus.

Brazil Confirms First Suspected Ebola Case

Brazil treats its first ever suspected case of Ebola while waiting for the results of a blood test which is due to be released on Saturday.

Ebola Press Conference Boston Logan Airport

Ebola In Boston: Two Ebola Mass. Scares Raises Fears Despite Braintree Patient Declared Not At Risk, What Is The Different Types Of Ebola Risks?

Fears over Ebola in Boston have heightened after two Massachusetts scares flared up over the Columbus Day weekend. Raised concerns over Ebola in Boston have since prompted holiday press conferences and reverse 911 calls to reassure the public.

American Airlines jet landing at DCA

American Airlines Flight Depressurized Due To Cracks In Cabin Walls; Plane Had Emergency Landing

American Airlines had to have an emergency landing after its cabin walls started to break apart as its passengers, absolutely terrified, had no choice but to look on and shout for help. One of the passengers, James Wilson, said that he felt something was wrong when the fuselage started to shake violently and heard some popping noises outside the plane.

Tropical Storm Ana 2014

Tropical Storm Ana 2014: Hurricane Watch May Be Required In Hawaiian Islands Because Of Strong Intensity Tropical Storm

Tropical Storm Ana 2014 - The new tropical storm named Ana is currently getting stronger and stronger with maximum sustained winds at 70 mph or 110 km/h and it is expected to hit the main Hawaiian islands on Wednesday, KHON2 first reported.

Mount Sinabung spews pyroclastic smoke, seen from Tiga Pancur village on February 12, 2014 in Karo District, North Sumatra, Indonesia.

Mount Sinabung Eruption 2014: Hauntingly Beautiful Lava And Ash Prompts Evacuations, Eruption Reaches Fourth Successive Day

A Mount Sinabung eruption 2014 occurred Friday, with the volcano spewing tons of molten lava and ash, captured in hauntingly beautiful photos. The initial Mount Sinabung eruption 2014 for the month, the latest in a recent set of eruptions of the Indonesian volcano took place Wednesday afternoon.

Find Us on Facebook

travelers today

© Copyright 2014 Travelers Today All Rights Reserved.

Subscribe to our newsletter
Real Time Analytics