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

Traveling with Liquids

Travel Hacks: Traveling with Liquids

Liquids can be one of the trickiest parts of packing for a flight, especially if you are bringing a carryon. Either they are over the limit, or they leak in your bag. Whatever the reason they seem to be a nuisance.

Subscribe to our newsletter

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

Want more Travel?

Most Popular

Holiday Getaway

Why You Should Head To Europe For Your Next Holiday Getaway!

Thinking of traveling this Thanksgiving and Christmas season? But afraid spending much too much over your next last-minute getaway? Here are some of the best tips to follow if you intend to save much while enjoying the perfect European holiday getaway.

New York Pot Arrests

New York Pot Arrests: New Policy Promotes Summonses Instead Of Arrests Since Officers Want To Focus On Other Crimes

New York pot arrests are going to be different this time around after a few changes on the city's marijuana policy have been made.

USS Ross Sailors Attacked By Turkey Youth Union In Istanbul

USS Ross Sailors Attacked By Turkish Mob In Istanbul, Bags Placed Over Heads?

USS Ross sailors attacked by about 20 political activists happened in Istanbul Wednesday. Members of the Turkish Youth Union hurled objects at them, chased the three men and at one point, placed a bag over one of the heads of the USS Ross sailors attacked.

Pack of street dogs

Pack of Dogs Responsible For Wyoming Woman’s Tragic Death

Pack of dogs named responsible to a death in Wyoming on Wednesday.

Napoleon Bonaparte's bicorne hat.

Napoleon Hat $2.4 Million Sold To South Korean Collector; Famous Chapeau Of Napoleon Bonaparte Estimated To Sell At $500K Was Purchased For More Than $2M

Napoleon hat $2.4 million was sold at a recent action. A collector from South Korea, whose identity has not been revealed, purchased the famous chapeau.

White marble statue on tomb of Frederic Chopin (1810-1849), composer and Polish pianist. Bronze statue of Dominique Vivant Denon (1747-1825), engraver, writer, French administrator. Pere Lachaise Cemetery in Paris, France.

Chopin’s Heart Exhumed Secretly? Returned to Warsaw Church for another 50 Years

Chopin Heart Exhumed – The heart Chopin of the iconic composer, Frederic Chopin, has reportedly been secured in a jar of liquor in Poland for 155 years. Chopin’s heart was exhumed recently in order for experts to ensure that the alcohol had not evaporated before they return the organ to its final resting place.

Over 700 Sickened By Virus On Cruise Ship

Crown Princess Norovirus Update: 172 Confirmed Infected, Second Infection This Year

Crown Princess Norovirus update – For the second time this year, another Crown Princess Cruise ship has fallen victim to the Norovirus. After just six months since the first infection spread in one Crown Princess Cruise ship, a second cruise has been infected with 172 people confirmed to be carrying the virus.

Brooklyn Bridge

Brooklyn Bridge Climber Arrested And Charged With Criminal Trespass And Reckless Endangerment; French Tourist States He Was Only Trying To Get Sweeping Photos Of The City

Brooklyn Bridge climber arrested on Monday. The French tourist was charged with reckless endangerment and criminal trespass.

Jekyll Island Resort

Relax Where the Rich Once Played: Jekyll Island

Located in the on the southeastern coat of Georgia is Jekyll Island, a small island retreat nestled in the marshes that the south is known for. While some people have made their permanent home here, the island feels isolated. With few hotels and no major city center, Jekyll Island is the perfect get away spot.

Find Us on Facebook

travelers today

© Copyright 2014 Travelers Today All Rights Reserved.

Subscribe to our newsletter
Real Time Analytics