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

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

5 Ways to Have a More Active Vacation

For those of us who like to live an active lifestyle here are some tips for staying active while you're on vacation where it can be very difficult.

Subscribe to our newsletter

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

Want more Travel?

Most Popular

Car

Canada Hit-And-Run Attack Perpetrator 'Radicalized?' Authorities Cite Similar Case Last Year As Basis

The Canada hit-and-run attack suspect, who was killed by the authorities after a long chase, is now believed to have been "radicalized" because of the on-going terrorism in the country.

Eric Matthew Frein

Pennsylvania Man Hunt: Schools Close As Man Hunt Drags On, Eric Frein Spotted In Close Proximity To Schools, Children Unsafe With Man Hunt Ongoing?

Pennsylvania man hunt of Eric Frein has dragged on to its’ second month. Frein is wanted for the murder of a state trooper, Cpl. Bryon Dickson, last Sept. 12. Named as “extremely dangerous” by Pennsylvania authorities, Frein has already been added to FBI’s most wanted fugitives.

ISIS Militants In Syria

Denver Girls ISIS: FBI Reviewing Evidence Against Three Girls Believed To Be Heading To Syria To Join Islamic State Militants: Report

Denver Girls ISIS - At least three girls from Denver have been denied their right to travel after authorities found out that they were heading to Syria via Turkey. The FBI is looking into evidence that could prove the girls' intention of joining the Islamic State militants.

Caribbean Princess, Dublin Port

Ebola-Risk Hospital Worker Boards Caribbean Cruise Ship; U.S. Officials To Limit Their Public Appearances

An Ebola-risk health care worker boarding a cruise ship is being isolated despite not showing any signs and symptoms of the deadly disease while U.S. officials asked the health workers exposed to the Ebola infected patients to limit public appearances.

Defective Takata airbags prompted the recall of about 247,000 Toyota model vehicles.

Takata Airbag Recall 2014: Toyota Withdraw Models For Defective Inflators

Takata airbag defect prompts the recall of several Toyota Motor Corp models in the United States on Monday.

Vials

Cure For Ebola Found: Canada To Ship 800 Vials of Experimental Vaccine, China Claims To Have Found Cure

Cure for Ebola found – Canada is reported to send out 800 vials of an experimental drug set out to cure the Ebola outbreak. The cure for Ebola found is an experimental drug named VSV-EBOV. All 800 vials had been tested on primates and showed positive results.

California Drought Map

California Drought Map Reveals 58% Of State Suffers Deficiency Of Water Supply Amid Imminent Winter Season

California's drought map still shows an alarming phenomenon at the Golden State wherein 58% of the area is suffering from deficiency of water supply, be it atmospheric, surface or ground water.

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.

Find Us on Facebook

travelers today

© Copyright 2014 Travelers Today All Rights Reserved.

Subscribe to our newsletter
Real Time Analytics