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Edited Transcript of PFS earnings conference call or presentation 26-Jul-19 2:00pm GMT

Q2 2019 Provident Financial Services Inc Earnings Call

Jersey City Aug 3, 2019 (Thomson StreetEvents) -- Edited Transcript of Provident Financial Services Inc earnings conference call or presentation Friday, July 26, 2019 at 2:00:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Christopher P. Martin

Provident Financial Services, Inc. - Chairman, President & CEO

* John F. Kuntz

Provident Financial Services, Inc. - Senior EVP, General Counsel & Corporate Secretary

* Thomas M. Lyons

Provident Financial Services, Inc. - Senior EVP & CFO

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Conference Call Participants

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* Collyn Bement Gilbert

Keefe, Bruyette, & Woods, Inc., Research Division - MD and Analyst

* Mark Thomas Fitzgibbon

Sandler O'Neill + Partners, L.P., Research Division - Principal & Director of Research

* Matthew M. Breese

Piper Jaffray Companies, Research Division - MD & Senior Research Analyst

* Russell Elliott Teasdale Gunther

D.A. Davidson & Co., Research Division - VP & Senior Research Analyst

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Presentation

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Operator [1]

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Good morning and welcome to the Provident Financial Services Inc. Second Quarter 2019 Earnings Conference Call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to John Kuntz, Corporate Secretary. Please go ahead.

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John F. Kuntz, Provident Financial Services, Inc. - Senior EVP, General Counsel & Corporate Secretary [2]

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Thank you, Andrew. Good morning, everyone, and thank you for joining us today. The presenters for our second quarter earnings call are Chris Martin, Chairman, President and CEO; and Tom Lyons, Senior Executive Vice President and Chief Financial Officer.

Before beginning the review of our financial results, we ask that you please take note of our standard caution as to any forward-looking statements made during the course of today's call.

Our full disclaimer can be found in this morning's earnings release, which has been posted to the Investor Relations Page on our website, provident.bank.

Now I'm pleased to introduce Chris Martin, who will offer his thoughts on the quarter. Chris?

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Christopher P. Martin, Provident Financial Services, Inc. - Chairman, President & CEO [3]

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Well, thanks, John, and good morning, everyone. Provident's operating results were positive despite deterioration in the 2 C&I credits, which resulted in elevated credit cost for the quarter. Revenue in all categories exceeded the trailing quarter and operating costs were well contained. And through the first half of the year, our annualized return on average assets was 1.14%, and our return on average tangible equity was 11.67%.

Our margin expanded during the quarter to 3.42%, but as Tom will detail later, this was due to the acceleration of accretion of interest income on our lien that paid off during the quarter. Without that noise, the margin would have contracted by 8 basis points. As the prospect for a rate cut by the Fed is fairly certain, we will experience some pressure on our margin and as floating and variable rate asset yields compress.

We expect this to be partially offset by a relief in exception to deposit pricing and overnight borrowing costs. Market pressure on increasing deposit rates has begun to subside as many of our competitors are experiencing margin compression and contraction at a much greater pace than Provident. Money market rates should begin to decrease if the Fed reduces rates. And we will reprice down quickly wherever we can as the exception as the relationship pricing concessions are taken off the table.

Our deposit mix still remains at over 88% core. As for loan growth, we had strong prepayment activity, which continued during Q2, making portfolio growth difficult. We continue to see competition stretching on underwriting, credit structure and pricing, especially in the middle market space. Our lending teams utilize our loan pricing models to assure an adequate risk-adjusted return. And we are seeing our share of lending opportunities in our markets and are approaching them with our disciplined approach to structure and returns.

Noninterest income improved during the quarter as a result of increased Wealth Management income from the Tirschwell & Loewy acquisition, accompanied by loan prepayment fees and loan level swap fees. Noninterest expense increased for the quarter to $49.7 million with the additional compensation costs and amortization of intangibles from the T&L acquisition and increases in technology and data processing expenses.

Our efficiency ratio on annualized noninterest expense as a percentage of average assets remains stable at 53.79% and 2.03%, respectively. We continue to invest in technology improvements to build enhanced capabilities to meet the ever-growing customer demand to self-serve and deliver the same type of experience whether it be in person or mobile.

The small business lending portal has gained traction as we offer our customers and prospects a solution to provide them with working capital to build upon. And we continue to invest in AI and the use of robotics to achieve greater operational efficiencies throughout our organization.

As for credit. We continue to be cautiously optimistic about overall credit quality, despite the higher level of provisioning in the second quarter related to 2 C&I credits. We do not see any adverse trend in any particular industry or geography that cause us to have a negative outlook near term.

We continue to focus on organic growth but have been actively induced on the M&A front. While the opportunities have increased, so have pricing and deal metrics. Any deal we would be involved in must be accretive, both dimensionally and strategically. All of this must be against the backdrop of improving EPS and shareholder value.

We continue to draw ever closer to the magic number of $10 billion in assets and all that it entails. Provident is investing in enterprise risk, compliance and information security personnel to meet the requirements of our regulators.

As the U.S. economy remains healthy, unemployment at a 50-year low, and business and consumer confidence at its best in over a decade, we do not anticipate any negative economic news on the horizon, geopolitical and trade concerns aside, that will impact future growth and strength. I continue to meet with our clients and their tone remains positive and constructive.

With that, Tom will go over more details on the quarter. Tom?

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Thomas M. Lyons, Provident Financial Services, Inc. - Senior EVP & CFO [4]

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Thank you, Chris, and good morning, everyone. Net income for the quarter was $24.4 million or $0.38 per diluted share compared with $19.2 million or $0.30 per share for the second quarter of 2018, and $30.9 million or $0.48 per share in the trailing quarter. Current quarter revenue was $92 million, as interest income, net interest income and noninterest income all exceeded trailing quarter and prior year's second quarter levels.

Our net interest margin expanded 2 basis points versus the trailing quarter and 9 basis points versus the same period last year. The quarter -- current quarter's margin was aided by the recognition of $2.2 million in interest income upon the prepayment of loans which had been non-accruing prior to being restructured in 2017. While those loans were not accruing, payments were applied to principal. When they were returned to accruing status, these amounts commenced accretion interest income over the remaining life of the loans.

This accretion then was accelerated upon the prepayment of the loans, adding 10 basis points to our quarterly net interest margin. Compared with the first quarter of 2019, our earning asset yield increased 8 basis points, while the cost of interest-bearing liabilities also increased 8 basis points. While we did see some relief in the rate of increase in deposit costs as the quarter progressed, the increase in funding costs for the quarter reflected the lagging effect of the Fed's rate hikes and competitive pressures.

Quarter end loan totals increased $70 million from March 31, driven by growth in commercial mortgages, commercial and construction loans. Loan originations were particularly strong, $113 million better than the second quarter of 2018 and $116 million better than the trailing quarter.

Payoffs remain elevated, however, with $55 million more paying off in the current quarter than last year and $15 million more in payoffs than in the trailing quarter. The pipeline at June 30 decreased to $979 million from $1.2 billion at the trailing quarter, reflecting strong origination activity.

Pipeline rate has decreased 23 basis points since last quarter to 4.56%. This lower pipeline rate reflects current market conditions, the decline in treasury rates and the shift in pipeline mix. However, it continues to exceed the loan portfolio rate of 4.51% adjusted to exclude the recognition of previously nonaccrual interest this quarter.

Our provision for loan losses was elevated at $9.5 million this quarter, largely driven by 2 C&I credits. A $5.7 million relationship with a commercial contractor has been fully reserved, pending additional investigation to determine the extent of our loss. The deterioration in this credit appears to have been result of the borrower taking on larger projects, slow payments from customers and an apparent employee defalcation. $3.3 million was also provided with $1.3 million charged off in connection with our $14.1 million interest in a Shared National Credit to a franchise restaurant owner/operator that has experienced declining revenues and profits in certain of their properties.

This relationship is current as to payments but has moved to nonaccrual based on the borrower's expressed intent to exit the business. As a result of these 2 impaired lending relationships, our credit metrics evidenced modest deterioration, with nonperforming assets increasing to 40 basis points of total assets at quarter end.

Annualized net charge-offs were 11 basis points of average loans and the allowance for loan losses to total loans increased to 86 basis points from 77 basis points in the trailing quarter.

Noninterest income increased by $3.6 million versus the trailing quarter to $15.8 million. Wealth Management income increased $2.2 million, largely due to the completion of the Tirschwell & Loewy acquisition on April 1.

In addition, loan prepayment fees, income from mutual fund and annuity sales, and deposit ATM and debit card fees, all increased. Loan level swap income also increased $1.4 million versus the trailing quarter, more than offsetting a decrease in benefit claims on bank-owned life insurance.

Noninterest expenses were an annualized 2.03% of average assets for the quarter. Expenses increased by $1.3 million to $49.7 million versus the trailing quarter, primarily as a result of increased compensation and benefits, amortization of intangibles established through the Tirschwell & Loewy acquisition, data processing and other expenses.

Our effective tax rate increased to 26.5% from 19.9% for the trailing quarter. The increase is attributable to the publication of a technical bulletin that specifies the treatment of real estate investment trusts in connection with combined reporting from New Jersey Corporate Business tax purposes. As a result, an increase in the tax provision for the first 6 months of 2019 was required, and we are projecting an effective tax rate of approximately 24% for the remainder of 2019. That concludes our prepared remarks. We'd be happy to respond to questions.

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Questions and Answers

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Operator [1]

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(Operator Instructions) The first question comes from Mark Fitzgibbon of Sandler O'Neill.

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Mark Thomas Fitzgibbon, Sandler O'Neill + Partners, L.P., Research Division - Principal & Director of Research [2]

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So I wondered if you can give us any more color on those 2 credits, sort of whether there's any potential additional loss on that syndicated credit. And also give us a sense for how much in total syndicated credits you have in the portfolio today? And maybe what the split is between, sort of, club deals and SNCs.

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Thomas M. Lyons, Provident Financial Services, Inc. - Senior EVP & CFO [3]

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Sure. I'll take the first -- the last part, Chris. Mark, total SNCs outstanding about $169 million against a $303 million exposure. So it's about $144 million -- $134 million in unused commitments there.

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Christopher P. Martin, Provident Financial Services, Inc. - Chairman, President & CEO [4]

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Mark, on the loans that are going with the one that we reserved -- fully reserved the amount, which we would always try to attack these early, we had a loan that had been doing fairly well back from 2012. His business grew and then he couldn't support it then he went to other places to get cash and then we've had a challenge getting information. And at this point, we really don't know where he stands, and so it's going into the process of finding out the information that can lead us to either taking the write-off -- charge-off completely or at least knowing where we stand on that credit.

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Mark Thomas Fitzgibbon, Sandler O'Neill + Partners, L.P., Research Division - Principal & Director of Research [5]

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Okay. And then, Tom, I apologize if I missed this. Did you give, sort of, your outlook for the margin for the back half of the year?

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Thomas M. Lyons, Provident Financial Services, Inc. - Senior EVP & CFO [6]

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Yes. I didn't, Mark. But I think we're probably looking at compression of, say, 2 to 4 basis points over the second half, pretty stable from where we are now.

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Mark Thomas Fitzgibbon, Sandler O'Neill + Partners, L.P., Research Division - Principal & Director of Research [7]

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2 to 4 basis...

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Thomas M. Lyons, Provident Financial Services, Inc. - Senior EVP & CFO [8]

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Yes. We modeled just the one rate cut at July 31, and we're thinking 2 to 4 over the course of the balance of the year.

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Mark Thomas Fitzgibbon, Sandler O'Neill + Partners, L.P., Research Division - Principal & Director of Research [9]

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Okay. And I guess I'm curious given your comments on M&A, Chris? For bank deals, what's sort of the top and bottom end of the size range that you'd contemplate?

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Christopher P. Martin, Provident Financial Services, Inc. - Chairman, President & CEO [10]

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I think anything $0.5 billion on up would be -- again, it depends on the -- its market, and obviously, we go with the normal metrics and math, brings a culture and a management team with it at that point. But anything under $0.5 billion probably would not be worth the -- not because they're bad, it just wouldn't be worth the impact to the financials and/or our company.

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Mark Thomas Fitzgibbon, Sandler O'Neill + Partners, L.P., Research Division - Principal & Director of Research [11]

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And the top end?

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Christopher P. Martin, Provident Financial Services, Inc. - Chairman, President & CEO [12]

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I guess to get to the top end would be an MOE-type of situation. So that's not to say that we wouldn't.

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Operator [13]

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The next question comes from Russell Gunther of D.A. Davidson.

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Russell Elliott Teasdale Gunther, D.A. Davidson & Co., Research Division - VP & Senior Research Analyst [14]

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I appreciated your comments on loan growth and where the pipeline sits. I just wanted to see if you could firm up what your loan growth expectations are for the back half of this year, and kind of what the mix and geographic drivers might be for you guys, New Jersey versus Pennsylvania.

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Christopher P. Martin, Provident Financial Services, Inc. - Chairman, President & CEO [15]

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This is Chris. The pipeline is still pretty solid. I think that we're doing well on the commercial real estate space and certainly C&I at a little bit lower level and a little less pull-through, being that there's a lot of aggressive things going on in the market. It would be -- still continue to be in both Eastern PA and certainly in New Jersey. And I think that we are still talking about low single digits, being that the growth is tempered by prepayments that we still see coming down the pike.

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Russell Elliott Teasdale Gunther, D.A. Davidson & Co., Research Division - VP & Senior Research Analyst [16]

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Okay, that's helpful. And then I guess the last one would be your expense outlook for the back half of the year. It was a bit of a better result than -- that I was looking for. It remains pretty well controlled. You also mentioned the $10 billion mark in prepared remarks. So just want to get a sense of where you'd expect expenses to trend from here and anything related to $10 billion preparation that would be in incremental spend.

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Thomas M. Lyons, Provident Financial Services, Inc. - Senior EVP & CFO [17]

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Yes. Russell, I think we're looking at about $49 million a quarter for this back half of the year. That's inclusive of any additional growth initiative costs, around a $10 billion crossing.

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Operator [18]

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The next question comes from Collyn Gilbert of KBW.

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Collyn Bement Gilbert, Keefe, Bruyette, & Woods, Inc., Research Division - MD and Analyst [19]

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Maybe, Tom, just the first question on deposits. Can you just talk a little bit about some of the trends that you saw this quarter in the deposit outflows and sort of what you're thinking for overall deposit growth going forward?

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Thomas M. Lyons, Provident Financial Services, Inc. - Senior EVP & CFO [20]

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Sure. Growth is good. We saw nice growth in the noninterest-bearing side of things. So -- the expectations are going to continue to be able to move that forward. As far as pricing goes, we actually saw some relief. When I look at the margin on a month-to-month basis, the cost of interest-bearing deposit seems to have plateaued. And we have some opportunities to manage some of those exception pricing, which will be effective on August 1. And then we'll continue to look at that through the back half of the year as we try to manage our margins. So we feel pretty good about that.

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Christopher P. Martin, Provident Financial Services, Inc. - Chairman, President & CEO [21]

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Collyn, this is Chris. And certainly some of the exception pricing that was done in the past, certainly, when it runs up, everybody is clamoring for more. And now all of a sudden that we see rates coming down, you're not going to hear the phone ringing as much. On the back half of that, we are going to be looking at and being aggressive on the way of repricing downward. And from a cost perspective there, you could borrow much longer with better structure than these entire rates for some of these accounts. So it does become a funding decision more so than just a relationship.

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Collyn Bement Gilbert, Keefe, Bruyette, & Woods, Inc., Research Division - MD and Analyst [22]

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Okay, okay. That's helpful. And then, Tom, do you happen to have maybe a percentage or dollar amount of the deposits, I guess looking primarily at money market, that are like specifically indexed to rates that we can assume would automatically drop when the Fed cuts?

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Thomas M. Lyons, Provident Financial Services, Inc. - Senior EVP & CFO [23]

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I don't think we have very much, if anything, that's indexed to rate.

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Christopher P. Martin, Provident Financial Services, Inc. - Chairman, President & CEO [24]

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Yes. We are not much at all indexed to rate. So I don't think we have any, so...

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Collyn Bement Gilbert, Keefe, Bruyette, & Woods, Inc., Research Division - MD and Analyst [25]

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Okay, okay. And then just on the margin. Tom, so you'd indicated 2 to 4 basis points of compression in the back half of this year. Just want to confirm, is that off of the reported margin this quarter? Or we -- should we backing out that 10 basis points, so starting at like a 3.32% level?

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Thomas M. Lyons, Provident Financial Services, Inc. - Senior EVP & CFO [26]

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That's correct. You need to back out that nonrecurring pick up in income, so starting off 3.32%.

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Collyn Bement Gilbert, Keefe, Bruyette, & Woods, Inc., Research Division - MD and Analyst [27]

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Okay, okay. And then I just want to confirm, you guys, in terms of exposure to New York City bank-regulated multifamily, do you have much at all there?

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Christopher P. Martin, Provident Financial Services, Inc. - Chairman, President & CEO [28]

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Very, very little. I can think of maybe one, and it's not a big one. And so no, we do not really traffic in that space at all. So any direct control of things and things of that nature, we don't really operate in the boroughs or in Manhattan.

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Collyn Bement Gilbert, Keefe, Bruyette, & Woods, Inc., Research Division - MD and Analyst [29]

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Okay. I just wanted to check. And then finally, Chris, interesting in your opening comments just about M&A and the fact that prices have gone up, which I guess I'm surprised to hear you say that just given the fact that you've had a couple of deals go off in this market at no premium/low premium deals? And I guess in my head, I'm kind of -- I'm just kind of thinking that would be the trend going forward. Can you just sort of give a little bit more color as to where it is that you're seeing pricing increases or sort of what's driving that comment?

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Christopher P. Martin, Provident Financial Services, Inc. - Chairman, President & CEO [30]

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Sure. And I know that the fact is when we are involved, we get the phone call that we're -- come in third or fourth. And when we look at the levels that we see as being pretty aggressive, we think that there's a challenge in some of the measurements and some of the assumptions that people are putting in, in the way of cost saves, being pretty aggressive. And we can't make it work. So it's just telling us that -- again, these are smaller deals. So we're missing but that's okay. We're trying to stay disciplined. I know that some of the other deals that were at 0 premium were certainly other bigger deals. And as you're referring to an Oritani type of situation, there probably is reasons why it was a 0-premium deal.

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Collyn Bement Gilbert, Keefe, Bruyette, & Woods, Inc., Research Division - MD and Analyst [31]

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Okay. That's helpful. And then just one final question. Tom, you always give such good guidance on this. In terms of the tax change, it's our understanding, I guess, in terms of the REIT status that you -- if we're understanding it right, that the qualification for the tax benefit could occur if you move the holding company charter to New Jersey and -- is that right? Or can you just talk about some of the dynamics specifically within that new tax guidance?

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Thomas M. Lyons, Provident Financial Services, Inc. - Senior EVP & CFO [32]

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There's 2 ways to approach tax planning strategies on that. You can have a New Jersey investment company as the parent, which our understanding from discussions with the division, not directly but through our professionals, is it that, that will continue to receive the preferred treatment of a New Jersey investment company. Or as in our case, if you have a Delaware investment company, it's subject to apportionment, with those gross receipts and the dividend that's distributed to the parent company being part of the denominator in the apportionment calculation. So whatever works best for an entity is what we would do.

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Collyn Bement Gilbert, Keefe, Bruyette, & Woods, Inc., Research Division - MD and Analyst [33]

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Okay, okay. So no -- I mean obviously with your guidance of 27% that's indicating that there's no intended change to offset that. That's kind of where you're going to stand?

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Thomas M. Lyons, Provident Financial Services, Inc. - Senior EVP & CFO [34]

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Yes, so the guidance going forward is 24%.

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Operator [35]

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The next question comes from Matthew Breese of Piper Jaffray.

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Matthew M. Breese, Piper Jaffray Companies, Research Division - MD & Senior Research Analyst [36]

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Just one clarification on the taxes. I know you had said the 24% stood for the rest of the year. Does that hold for 2020 as well?

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Thomas M. Lyons, Provident Financial Services, Inc. - Senior EVP & CFO [37]

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It does.

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Matthew M. Breese, Piper Jaffray Companies, Research Division - MD & Senior Research Analyst [38]

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Okay. And then just going back to your loan growth commentary. Do you anticipate crossing $10 billion by the end of the year? And if so, could you just remind us of what the Durbin exposure is?

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Christopher P. Martin, Provident Financial Services, Inc. - Chairman, President & CEO [39]

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Well, first, at this stage and what we run our models, we'd say we probably would not cross through the end of the year. And if we are close in the fourth quarter, we would do something to not go over for that Durbin impact, which is approximately $2.8 million to $2.9 million.

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Matthew M. Breese, Piper Jaffray Companies, Research Division - MD & Senior Research Analyst [40]

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Okay. Might we see you just sell off some securities to keep the total assets below $10 billion? Is that the intended strategy?

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Thomas M. Lyons, Provident Financial Services, Inc. - Senior EVP & CFO [41]

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That's right, Matt.

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Matthew M. Breese, Piper Jaffray Companies, Research Division - MD & Senior Research Analyst [42]

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Okay, okay. And then just driving into the restaurant portfolio. It sounds like there's some moving pieces there. Just kind of curious, was the operator taking -- perhaps utilizing some poor financing strategies? Or was there just a change in the business and revenues that led to deterioration? Just kind of a better characterization of what happened behind the scenes? Was it an industry issue or a operator issue?

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Thomas M. Lyons, Provident Financial Services, Inc. - Senior EVP & CFO [43]

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I think it's more the second in terms of the operator. Operates multiple franchises, one of which is less than favored at this point, also experienced a little bit of adverse impact from the increase in minimum wages in New York.

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Matthew M. Breese, Piper Jaffray Companies, Research Division - MD & Senior Research Analyst [44]

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Okay. And what type of institution? You don't have to give a specific name, but was it more pure fast food or kind of casual dining?

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Thomas M. Lyons, Provident Financial Services, Inc. - Senior EVP & CFO [45]

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Some of both, over a multiple -- over 3 different lines.

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Matthew M. Breese, Piper Jaffray Companies, Research Division - MD & Senior Research Analyst [46]

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Okay. And then just looking at fee income. This quarter was elevated, driven by the Wealth Management acquisition but also swap and prepayment fees. If you had to give us some guidance on what portions of that looks sustainable in the near term, what were those? And where do you think fee income could shake out for the last 2 quarters of the year?

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Thomas M. Lyons, Provident Financial Services, Inc. - Senior EVP & CFO [47]

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Yes. So prepayment fees weren't huge. So I mean, it's very likely we could see that again. As Chris indicated, based on some of the projected payoffs that we're looking at in the back half of the year, wealth Management, I expect will remain stable at higher levels now that the T&L acquisition is completed. So it's really the swap piece that's got some volatility to it. That was $896,000 for the second quarter compared with a negative $460,000 in the first quarter. Again, some of that in the mark-to-market with rates coming down. So if I look just at the volume piece, we made like $2.3 million compared to $218,000 in the first quarter, absent the CVA adjustment. So that's the risk, I guess, was that $2.3 million could drop to something less.

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Matthew M. Breese, Piper Jaffray Companies, Research Division - MD & Senior Research Analyst [48]

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Okay. Understood. And then, Chris, you'd mentioned in your opening remarks just that competition continues to stretch on terms and credit. Just curious where or what sort of competition is being the most aggressive? Are they the banks or the nonbanks? And as you consider where your borrowers are being taken out in terms of lending sheets, do you see competitors at this point taking on simply just less probability? Or extending too much, and now at this point, taking on legitimate credit risk?

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Christopher P. Martin, Provident Financial Services, Inc. - Chairman, President & CEO [49]

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Well, certainly, it's all of the above. Certainly, the private equities, the insurance companies are still being pretty aggressive on perms that we wouldn't do. The other side is the covenants that -- and they're basically -- we put out a term sheet, and then somebody would come back and say, well, we don't need any covenants at all. So it doesn't kind of -- and when you see that in print it gives you pause. I mean, I'm not saying they're doing anything bad, it's just that they're taking on undue risk if this does turn. And certainly on pricing, especially in the middle market space, when you try to put together a good offer, a good business model plan for them and the incumbent come back -- comes back and does something at 1.30% over LIBOR, you really can't do anything about that, which is they're protecting their turf, their portfolio. So we always still look and say our culture used to be a lot stronger than it was -- used to be 70%, 80% on C&I credits that we wanted. Right now we're down to 40%, and we're getting a lot of looks. But the fact is we just think some of the structures that people are putting on do give us some pause, so we just say, you know what, win the deals that we really want, but we will not play in the way of taking on credit issues that we think will come back to be a problem.

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Matthew M. Breese, Piper Jaffray Companies, Research Division - MD & Senior Research Analyst [50]

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Okay, okay. Just one more. My last one. If we are to see the balance sheet kind of governed under $10 billion. I would anticipate capital continues to build. Could you just give us a sense for your appetite in regards to share repurchases?

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Thomas M. Lyons, Provident Financial Services, Inc. - Senior EVP & CFO [51]

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Yes. As we disclosed, we have the authorization and we have the willingness to do that at the right price points. So we have a list of capital options, yes.

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Operator [52]

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This concludes both the question-and-answer session and the conference call for Provident Financial Services Inc. Thank you for attending today's presentation. You may now disconnect.