Businessweek

Provident Financial Services, Inc. operates as the holding company for The Provident Bank that provides banking services to individuals, families, and businesses in New Jersey. The company operates 82 full-service branch offices in the New Jersey counties of Hudson, Bergen, Essex, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, and Union. Strategy The company’s strategy is to grow profitably through a commitment to credit quality and expanding market share by acquiring, retaining and expanding customer relationships, while managing interest rate risk. The company’s relationship banking strategy focuses on increasing core accounts and expanding relationships through its branch network, online banking, and telephone banking touch points. Lending Activities Residential Mortgage Lending: The company originates residential mortgage loans secured by first mortgages on one- to four-family residences, generally located in the state of New Jersey. It originates residential mortgages primarily through commissioned mortgage representatives, the Internet and its branch offices. The company originates both fixed-rate and adjustable-rate mortgages. The company originates fixed-rate fully amortizing residential mortgage loans with the principal and interest due each month, that typically have maturities ranging from 10 to 30 years. It also originates fixed-rate residential mortgage loans with maturities of 15, 20 and 30 years that require the payment of principal and interest on a biweekly basis. Commercial Real Estate Loans: The company originates loans secured by mortgages on various commercial income producing properties, including office buildings, multi-family apartment buildings and retail and industrial properties. It originates commercial real estate loans with adjustable rates and with fixed interest rates for a period that is generally 5 to 10 years or less. Multi-family Lending: The company underwrites loans secured by apartment buildings that have approximately five units. It considers multi-family lending a component of the commercial real estate lending portfolio. Construction Loans: The company originates commercial construction loans. Commercial construction lending includes both new construction of residential and commercial real estate projects and the reconstruction of existing structures. The company underwrites construction loans for a term of three years or less. Commercial Loans: The company underwrites commercial loans to corporations, partnerships and other businesses. The majority of its commercial loan customers are local businesses with revenues of approximately$50.0 million. The company offers commercial loans for equipment purchases, lines of credit for working capital purposes, letters of credit and real estate loans where the borrower is the primary occupant of the property. The company also underwrites Small Business Administration (SBA) guaranteed loans and guaranteed or assisted loans through various state, county and municipal programs. Consumer Loans: The company offers various consumer loans to individuals. The consumer loan portfolio includes personal loans and unsecured lines of credit, direct auto loans, and recreational vehicle loans. Its consumer loan portfolio also includes marine loans made on an indirect basis that are secured by a first lien on recreational boats. Investment Securities As of December 31, 2011, the company’s investment portfolio included state and municipal obligations; mortgage-backed securities; the Federal Home Loan Mortgage Corporation obligations; the Federal Home Loan Bank of New York obligations; the Federal National Mortgage Association obligations; FFCB obligations; corporate obligations; and equity securities. Deposits The company offers various deposits for retail and business accounts. Deposit products include savings accounts, checking accounts, interest-bearing checking accounts, money market deposit accounts, and certificate of deposit accounts. It also offers IRA and KEOGH accounts. Business customers are offered various checking account and savings plans, cash management services, remote deposit cap