Worth Watching Stock for Traders: Provident Financial Services (NYSE:PFS)

Provident Financial Services (NYSE:PFS) changed -3.71% to recent value of $23.86. The stock transacted 563112 shares during most recent day however it has an average volume of 171.41K shares. It spotted trading -14.54% off 52-week high price. On the other end, the stock has been noted 8.16% away from the low price over the last 52-weeks.

On July 26, 2019, Provident Financial Services (NYSE:PFS) reported net income of $24.4 million, or $0.38 per basic and diluted share, for the three months ended June 30, 2019, compared to net income of $19.2 million, or $0.30 per basic and diluted share, for the three months ended June 30, 2018.  For the six months ended June 30, 2019, the Company reported net income of $55.3 million, or $0.85 per basic and diluted share, compared to net income of $47.2 million, or $0.73 per basic share and diluted share, for the same period last year.

The Company’s earnings for the three and six months ended June 30, 2019 were adversely impacted by elevated provisions for loan losses arising from deterioration in two commercial credit relationships.  This included fully reserving for a $5.7 million lending relationship with a commercial contractor and providing $3.3 million in connection with a $14.1 million interest in a syndicated credit to a franchise restaurant owner/operator that became impaired during the quarter.

For the three and six months ended June 30, 2018, the Company’s earnings were negatively affected by an increase in the provision for loan losses arising from a credit loss associated with a $15.4 million asset based lending credit.The Company has exited the asset based lending business.

On April 1, 2019, the Company’s wealth management subsidiary completed its acquisition of certain assets and liabilities of Tirschwell & Loewy (T&L), a New York City-based independent registered investment adviser.

Christopher Martin, Chairman, President and Chief Executive Officer commented: Our pre-tax pre-provision earnings for the quarter remained robust, as our loan portfolio grew and overall asset quality remained strong.  We were, however, disappointed in the elevated loan loss provision required by borrower-specific deterioration in two commercial credits.  Martin continued, Industry net interest margins remain under pressure, but we did see some relief in deposit costs as the quarter progressed.  We closed the T&L acquisition, effectively deploying capital and helping to further diversify our revenue from spread-based sources.

PFS has a an operating margin of 77.60% while its profit margin remained 33.20% for the last 12 months. Its earnings per share (EPS) expected to touch remained 20.00% for this year while earning per share for the next 5-years is expected to reach at 8.00%.

The company has 69.33M of outstanding shares and 61.24M shares were floated in the market. The price moved ahead of -2.52% from the mean of 20 days, -1.69% from mean of 50 days SMA and performed -5.01% from mean of 200 days price. Company’s performance for the week was -3.05%, 0.51% for month and YTD performance remained -0.40%.

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