Overview

• US regional bank's Q1 net income and EPS rose yr/yr, but fell sequentially

• Q1 revenue grew yr/yr, driven by net interest income and insurance agency income

• Company repurchased $12.4 mln in common stock during the quarter

Outlook

• Company says loan pipeline at record $3.1 bln, expects continued EPS growth

Result Drivers

• NET INTEREST INCOME - Growth in net interest income was driven by new loan originations and favorable deposit repricing

• INSURANCE AGENCY INCOME - Higher insurance agency income contributed to revenue growth, mainly from contingent commissions and increased business activity

• CREDIT LOSS PROVISION - Net income benefited from a $2.1 mln recapture of previous provisions for credit losses, mainly due to reduced specific reserves on individually evaluated loans

Company press release: ID:nGNX3nD8SK

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 EPS		$0.61
Q1 Net Income		$79.42 mln
Q1 Net Interest Income		$193.74 mln
Q1 Credit Loss Provision		-$2.12 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Provident Financial Services Inc is $25.00, about 8.7% above its April 28 closing price of $22.99

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 8 three months ago

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