PFS - Provident Financial: An Old Local Bank With Growth Potential After Lakeland Bank Merger

2024-02-14 01:22:29 ET

Summary

• Provident Financial Services, the parent of Provident Bank, gets a Buy rating today, contrarian to the bearish or cautious consensus from Wall Street and the SA quant system.
• The bank has expected future EPS and revenue growth, a 6% dividend yield that beats several regional bank peers, an expanding loan portfolio, and growth potential from Lakeland Bank merger.
• Provident has a low risk profile, with less than 5% of the loan book exposed to office loans.
• The share price appears to be fairly priced and valued.

Company Overview

It's still early in the trading week and while on the hunt for a hidden gem in the recently embattled regional banking sector, I came across a relatively under-covered local bank based in New Jersey, which I will be rating today, Provident Financial Services ( PFS ) , the parent company of Provident Bank.

What sets this company's profile apart for me is that Provident has been around since 1839, is trading on the NYSE for under $16 today, and has a diversified business spanning across personal and business banking as well as investments and selling/managing foreclosed properties....

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