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Provident Financial Services Inc
Provident Financial Services, Inc. Reports Second Quarter Earnings
Business
Jul 24 2025
42 min read

Provident Financial Services, Inc. Reports Second Quarter Earnings

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ISELIN, N.J., July 24, 2025 (GLOBE NEWSWIRE) -- Provident Financial Services, Inc. (NYSE:PFS) (the “Company”) reported net income of $72.0 million, or $0.55 per basic and diluted share for the three months ended June 30, 2025, compared to $64.0 million, or $0.49 per basic and diluted share, for the three months ended March 31, 2025 and a net loss of $11.5 million, or $(0.11) per basic and diluted share, for the three months ended June 30, 2024. For the six months ended June 30, 2025, net income totaled $136.0 million, or $1.04 per basic and diluted share, compared to $20.6 million, or $0.23 per basic and diluted share, for the six months ended June 30, 2024. While there were no transaction costs related to our merger with Lakeland Bancorp, Inc. (“Lakeland”) for the 2025 period, these costs totaled $79.0 million and $81.2 million, including an initial Current Expected Credit Loss ("CECL") provision for credit losses recorded as part of the Lakeland merger, for the three and six months ended June 30, 2024, respectively.

Anthony J. Labozzetta, President and Chief Executive Officer commented, “Provident's performance this quarter was impressive and I am very proud of the team's continued hard work and dedication to excellence. We achieved record revenues by growing earning assets and expanding margins, while improving operational efficiency and maintaining strong asset quality. We look forward to sustaining our positive momentum and continuing to grow our business.”

Performance Highlights for the Second Quarter of 2025

  • Adjusted for a one-time write-down on a foreclosed property in the prior quarter, the Company's annualized adjusted returns on average assets, average equity and average tangible equity(1) were 1.19%, 10.76% and 16.79% for the quarter ended June 30, 2025, compared to 1.11%, 10.13% and 16.15% for the quarter ended March 31, 2025. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 12 of the earnings release.

  • The Company's annualized adjusted pre-tax, pre-provision returns on average assets, average equity and average tangible equity(2) were 1.64%, 14.88% and 21.26% for the quarter ended June 30, 2025, compared to 1.61%, 14.63% and 21.18% for the quarter ended March 31, 2025. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 12 of the earnings release.

  • The Company reported record revenue of $214.2 million for the quarter ended June 30, 2025, comprised of record net interest income of $187.1 million and non-interest income of $27.1 million.

  • Average interest-earning assets increased $383.8 million, or an annualized 7.0%, for the quarter ended June 30, 2025, versus the trailing quarter.

  • The Company’s commercial and industrial ("C&I") loan portfolio, excluding mortgage warehouse lines, increased $182.7 million, or 16.26% annualized, to $4.69 billion as of June 30, 2025, from $4.51 billion as of March 31, 2025. Additionally, the Company's total commercial loan portfolio, including mortgage warehouse lines, commercial mortgage, multi-family and construction loans, increased $319.3 million, or 7.98% annualized, to $16.51 billion as of June 30, 2025, from $16.19 billion as of March 31, 2025.

  • As of June 30, 2025, the Company's loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $2.59 billion, with a weighted average interest rate of 6.30%, compared to $2.77 billion, with a weighted average interest rate of 6.31%, as of March 31, 2025.

  • The net interest margin increased two basis points to 3.36% for the quarter ended June 30, 2025, from 3.34% for the trailing quarter, while the core net interest margin, which excludes the impact of purchase accounting accretion and amortization, decreased one basis point from the trailing quarter to 2.93%. The weighted average yield on interest-earning assets for the quarter ended June 30, 2025 increased five basis points to 5.68%, compared to the trailing quarter, while the weighted average cost of interest-bearing liabilities for the quarter ended June 30, 2025 increased four basis points to 2.94%, compared to the trailing quarter.

  • The Company recorded a $2.7 million benefit to the provision for credit losses on loans for the quarter ended June 30, 2025, compared to a $325,000 provision for the trailing quarter. Non-performing assets to total assets improved to 0.44% as of June 30, 2025, and annualized net charge-offs were 0.03% of loans for the quarter. The allowance for credit losses as a percentage of loans decreased to 0.98% as of June 30, 2025, from 1.02% as of March 31, 2025.

  • Tangible book value per share (3) increased 3.2% to $14.60 and our tangible common equity ratio increased 13 basis points to 8.03% as of June 30, 2025. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 13 of the earnings release.

Results of Operations

Three months ended June 30, 2025 compared to the three months ended March 31, 2025

For the three months ended June 30, 2025, the Company reported net income of $72.0 million, or $0.55 per basic and diluted share, compared to net income of $64.0 million, or $0.49 per basic and diluted share, for the three months ended March 31, 2025.

Net Interest Income and Net Interest Margin

Net interest income increased $5.4 million to $187.1 million for the three months ended June 30, 2025, from $181.7 million for the trailing quarter. The increase in net interest income was primarily due to originations of new loans at current market rates and the favorable repricing of adjustable rate loans, partially offset by a decrease in average lower-costing deposits and an increase in average borrowings.

The Company’s net interest margin increased two basis points to 3.36% for the quarter ended June 30, 2025, from 3.34% for the trailing quarter. The weighted average yield on interest-earning assets for the quarter ended June 30, 2025 increased five basis points to 5.68%, compared to the trailing quarter. The weighted average cost of interest-bearing liabilities for the quarter ended June 30, 2025 increased four basis points from the trailing quarter, to 2.94%. The average cost of interest-bearing deposits for the quarter ended June 30, 2025 decreased two basis points to 2.62%, compared to 2.64% for the trailing quarter. The average cost of total deposits, including non-interest-bearing deposits, was 2.10% for the quarter ended June 30, 2025, compared to 2.11% for the trailing quarter. The average cost of borrowed funds for the quarter ended June 30, 2025 was 3.94%, compared to 3.76% for the quarter ended March 31, 2025.

Provision for Credit Losses on Loans

For the quarter ended June 30, 2025, the Company recorded a $2.7 million benefit to the provision for credit losses on loans, compared with a provision for credit losses on loans of $325,000 for the quarter ended March 31, 2025. The benefit to the provision for credit losses on loans in the quarter was primarily attributable to an improved economic forecast and an overall improvement in the Company's asset quality, partially offset by an increase in specific reserves required on individually analyzed loans. For the three months ended June 30, 2025, net charge-offs totaled $1.2 million, or an annualized three basis points of average loans, compared with net charge-offs of $2.0 million, or an annualized four basis points of average loans for the trailing quarter.

Non-Interest Income and Expense

For the three months ended June 30, 2025, non-interest income totaled $27.1 million, an increase of $45,000, compared to the trailing quarter. Fee income increased $1.1 million to $10.7 million for the three months ended June 30, 2025, compared to the trailing quarter, primarily due to increases in deposit related and loan prepayment fee income, combined with an increase in non-deposit investment fee income. BOLI income increased $493,000 for the three months ended June 30, 2025, compared to the trailing quarter, primarily due to greater equity valuations and an increase in benefit claims recognized. Partially offsetting these increases in non-interest income, insurance agency income decreased $709,000 to $4.9 million for the three months ended June 30, 2025, compared to the trailing quarter, mainly due to the receipt of contingent commissions in the prior quarter, partially offset by additional business activity in the current quarter. Wealth management income decreased $380,000 to $6.9 million for the three months ended June 30, 2025, compared to the trailing quarter, mainly due to a decrease in the average market value of assets under management during the period. Additionally, other income decreased $353,000 to $1.9 million for the three months ended June 30, 2025, compared to the trailing quarter, primarily due to a decrease in profit on fixed asset sales.

Non-interest expense totaled $114.6 million for the three months ended June 30, 2025, a decrease of $1.7 million, compared to $116.3 million for the trailing quarter. Other operating expenses decreased $1.9 million to $14.5 million for the three months ended June 30, 2025, compared to $16.4 million for the trailing quarter, primarily due to a prior quarter $2.7 million write-down on a foreclosed property, while net occupancy expense decreased $916,000 to $13.0 million for the three months ended June 30, 2025, compared to $13.9 million for the trailing quarter, primarily due to decreases in snow removal, utilities and other maintenance costs. Partially offsetting these decreases in non-interest expense, compensation and benefits expense increased $883,000 to $63.2 million for the three months ended June 30, 2025, compared to $62.4 million for the trailing quarter. The increase in compensation and benefits expense was primarily attributable to an increase in salary expense, primarily due to additional business days in the current quarter compared to the trailing quarter.

The Company’s annualized adjusted non-interest expense as a percentage of average assets(5) totaled 1.89% for the quarter ended June 30, 2025, compared to 1.92% for the trailing quarter. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)(6) improved to 53.52% for the three months ended June 30, 2025, compared to 54.43% for the trailing quarter.

Income Tax Expense

For the three months ended June 30, 2025, the Company's income tax expense was $30.5 million with an effective tax rate of 29.7%, compared to income tax expense of $27.8 million with an effective tax rate of 30.3%, for the trailing quarter. The increase in tax expense for the three months ended June 30, 2025 compared with the trailing quarter was largely due to an increase in taxable income in the current quarter, while the decrease in tax rate was primarily due to a discrete item related to stock-based compensation in the prior quarter.

Three months ended June 30, 2025 compared to the three months ended June 30, 2024

For the three months ended June 30, 2025, the Company reported net income of $72.0 million, or $0.55 per basic and diluted share, compared to a net loss of $11.5 million, or $(0.11) per basic and diluted share, for the three months ended June 30, 2024. While there were no transaction costs related to our merger with Lakeland for the 2025 period, these costs totaled $79.0 million, including an initial CECL provision for credit losses recorded as part of the Lakeland merger, for the three months ended June 30, 2024.

Net Interest Income and Net Interest Margin

Net interest income increased $45.6 million to $187.1 million for the three months ended June 30, 2025, from $141.5 million for same period in 2024. The increase in net interest income was largely driven by growth in average earning assets and net assets added in the May 16, 2024 acquisition of Lakeland and related accretion of purchase accounting adjustments.

The Company’s net interest margin increased 15 basis points to 3.36% for the quarter ended June 30, 2025, from 3.21% for the same period last year. The weighted average yield on interest-earning assets for the quarter ended June 30, 2025 increased one basis point to 5.68%, compared to 5.67% for the quarter ended June 30, 2024. The weighted average cost of interest-bearing liabilities decreased 15 basis points for the quarter ended June 30, 2025 to 2.94%, compared to 3.09% for the second quarter of 2024. The average cost of interest-bearing deposits for the quarter ended June 30, 2025 was 2.62%, compared to 2.84% for the same period last year. Average non-interest-bearing demand deposits increased $833.2 million to $3.70 billion for the quarter ended June 30, 2025, compared to $2.87 billion for the quarter ended June 30, 2024. The average cost of total deposits, including non-interest-bearing deposits, was 2.10% for the quarter ended June 30, 2025, compared with 2.24% for the quarter ended June 30, 2024. The average cost of borrowed funds for the quarter ended June 30, 2025 was 3.94%, compared to 3.83% for the same period last year.

Provision for Credit Losses on Loans

For the quarter ended June 30, 2025, the Company recorded a $2.7 million benefit to the provision for credit losses on loans, compared with a $66.1 million provision for credit losses on loans for the quarter ended June 30, 2024. The benefit to the provision for credit losses on loans in the quarter was primarily attributable to an improved economic forecast and an overall improvement in the Company's asset quality, partially offset by an increase in specific reserves required on individually analyzed loans. The provision for credit losses on loans for the prior year quarter was primarily attributable to an initial CECL provision for credit losses of $60.1 million, recorded as part of the Lakeland merger. For the three months ended June 30, 2025, net charge-offs totaled $1.2 million, or an annualized three basis points of average loans, compared with net charge-offs of $2.7 million, or an annualized seven basis points of average loans, for the same period last year.

Non-Interest Income and Expense

Non-interest income totaled $27.1 million for the quarter ended June 30, 2025, an increase of $4.8 million, compared to the same period in 2024. Net gain on securities transactions increased $3.0 million for the three months ended June 30, 2025, compared to the same period in 2024, primarily due to a prior year $2.8 million loss on the sale of subordinated debt issued by Lakeland from the Provident investment portfolio prior to the merger. Fee income increased $2.0 million to $10.7 million for the three months ended June 30, 2025, compared to the prior year quarter, primarily due to increases in deposit fee income, debit card related fee income and loan related fee income, resulting from the Lakeland merger. Additionally, other income increased $895,000 to $1.9 million for the three months ended June 30, 2025, compared to the quarter ended June 30, 2024, primarily due to increases in gains on the sale of SBA loans, while insurance agency income increased $454,000 to $4.9 million for the three months ended June 30, 2025, compared to the quarter ended June 30, 2024, largely due to an increase in business activity. Partially offsetting these increases to non-interest income, wealth management fees decreased $821,000 to $6.9 million for the three months ended June 30, 2025, compared to the quarter ended June 30, 2024, mainly due to a decrease in the average market value of assets under management during the period, while BOLI income decreased $738,000 to $2.6 million for the three months ended June 30, 2025, compared to the prior year quarter, primarily due to a decrease in benefit claims recognized.

For the three months ended June 30, 2025, non-interest expense totaled $114.6 million, a decrease of $780,000, compared to the three months ended June 30, 2024. Merger-related expenses decreased $18.9 million for the three months ended June 30, 2025, compared to the same period in 2024. Partially offsetting the decrease in merger-related expenses, compensation and benefits expense increased $8.4 million to $63.2 million for the three months ended June 30, 2025, compared to $54.9 million for the same period in 2024, primarily attributable to the addition of Lakeland personnel. Other operating expenses increased $3.2 million to $14.5 million for the three months ended June 30, 2025, compared to $11.3 million for the same period in 2024, primarily due to the addition of Lakeland. Amortization of intangibles increased $3.0 million to $9.5 million for the three months ended June 30, 2025, compared to $6.5 million for the same period in 2024, largely due to core deposit intangible amortization related to Lakeland. Net occupancy expense increased $1.9 million to $13.0 million for three months ended June 30, 2025, compared to $11.1 million for the same period in 2024, primarily due to an increase in depreciation and maintenance expenses due to the addition of Lakeland. Data processing expenses increased $1.2 million to $9.6 million for three months ended June 30, 2025, compared to $8.4 million for the same period in 2024, primarily due to the addition of Lakeland.

The Company’s annualized adjusted non-interest expense as a percentage of average assets(5) was 1.89% for the quarter ended June 30, 2025, compared to 2.02% for the same period in 2024. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)(6) was 53.52% for the three months ended June 30, 2025 compared to 57.86% for the same respective period in 2024.

Income Tax Expense

For the three months ended June 30, 2025, the Company's income tax expense was $30.5 million with an effective tax rate of 29.7%, compared with an income tax benefit of $9.8 million for the three months ended June 30, 2024. The increase in tax expense for the three months ended June 30, 2025, compared with the same period last year was largely due to an increase in taxable income in the quarter. The prior year income tax benefit was largely due to a $5.3 million tax benefit related to the revaluation of deferred tax assets to reflect the imposition by the state of New Jersey of a 2.5% Corporate Transit Fee in the quarter, effective January 1, 2024, combined with a decrease in taxable income in the prior year quarter as a result of additional expenses from the Lakeland merger.

Six months ended June 30, 2025 compared to the six months ended June 30, 2024

For the six months ended June 30, 2025, net income totaled $136.0 million, or $1.04 per basic and diluted share, compared to net income of $20.6 million, or $0.23 per basic and diluted share, for the six months ended June 30, 2024. While there were no transaction costs related to our merger with Lakeland for the 2025 period, those costs totaled $81.2 million, including an initial CECL provision for credit losses recorded as part of the Lakeland merger, for the six months ended June 30, 2024.

Net Interest Income and Net Interest Margin

Net interest income increased $133.6 million to $368.8 million for the six months ended June 30, 2025, from $235.2 million for same period in 2024. Net interest income for the six months ended June 30, 2025 was largely driven by growth in average earning assets and net assets added in the May 16, 2024 acquisition of Lakeland and related accretion of purchase accounting adjustments.

For the six months ended June 30, 2025, the net interest margin increased 27 basis points to 3.35%, compared to 3.08% for the six months ended June 30, 2024. The weighted average yield on interest earning assets increased 22 basis points to 5.65% for the six months ended June 30, 2025, compared to 5.43% for the six months ended June 30, 2024, while the weighted average cost of interest-bearing liabilities decreased five basis points to 2.92% for the six months ended June 30, 2025, compared to 2.97% for the same period last year. The average cost of interest-bearing deposits decreased 11 basis points to 2.63% for the six months ended June 30, 2025, compared to 2.74% for the same period last year. Average non-interest-bearing demand deposits increased $1.24 billion to $3.71 billion for the six months ended June 30, 2025, compared with $2.47 billion for the six months ended June 30, 2024. The average cost of total deposits, including non-interest-bearing deposits, was 2.10% for the six months ended June 30, 2025, compared with 2.19% for the six months ended June 30, 2024. The average cost of borrowings for the six months ended June 30, 2025 was 3.86%, compared to 3.75% for the same period last year.

Provision for Credit Losses on Loans

For the six months ended June 30, 2025, the Company recorded a $2.3 million benefit to the provision for credit losses on loans, compared with a provision for credit losses on loans of $66.3 million for the six months ended June 30, 2024. The benefit to the provision for credit losses on loans for the six months ended June 30, 2025 was primarily attributable to an improved economic forecast and an overall improvement in the Company's asset quality, partially offset by an increase in specific reserves required on individually analyzed loans. The provision for credit losses on loans for the prior year period was primarily attributable to an initial CECL provision for credit losses of $60.1 million, recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. For the six months ended June 30, 2025, net charge-offs totaled $3.2 million or an annualized three basis points of average loans, compared with net charge-offs of $4.6 million, or an annualized four basis points of average loans, for the six months ended June 30, 2024.

Non-Interest Income and Expense

For the six months ended June 30, 2025, non-interest income totaled $54.1 million, an increase of $11.0 million compared to the same period in 2024. Fee income increased $5.8 million to $20.4 million for the six months ended June 30, 2025, compared to the same period in 2024, primarily due to increases in deposit fee income, debit and credit card related fee income and loan related fee income resulting from the Lakeland merger. Net gains on securities transactions increased $3.1 million for the six months ended June 30, 2025, primarily due to a prior year $2.8 million loss on the sale of subordinated debt issued by Lakeland from the Provident investment portfolio prior to the merger. Other income increased $2.3 million to $4.1 million for the six months ended June 30, 2025, compared to $1.8 million for the same period in 2024, primarily due to an increase in gains on sales of SBA and mortgage loans. Additionally, insurance agency income increased $1.3 million to $10.6 million for the six months ended June 30, 2025, compared to $9.3 million for the same period in 2024, largely due to increases in contingent commissions, retention revenue and new business activity. Partially offsetting these increases in non-interest income, wealth management income decreased $982,000 to $14.3 million for the six months ended June 30, 2025, compared to the same period in 2024, mainly due to a decrease in the average market value of assets under management during the period, while BOLI income decreased $462,000 to $4.7 million for the six months ended June 30, 2025, compared to the same period in 2024, primarily due to a decrease in benefit claims recognized, combined with lower equity valuations.

Non-interest expense totaled $230.9 million for the six months ended June 30, 2025, an increase of $43.7 million, compared to $187.2 million for the six months ended June 30, 2024. Compensation and benefits expense increased $30.7 million to $125.6 million for the six months ended June 30, 2025, compared to $94.9 million for the six months ended June 30, 2024, primarily attributable to the addition of Lakeland personnel. Amortization of intangibles increased $11.8 million to $19.0 million for the six months ended June 30, 2025, compared to $7.2 million for the six months ended June 30, 2024, largely due to core deposit intangible amortization related to Lakeland. Other operating expenses increased $9.3 million to $30.9 million for the three months ended June 30, 2025, compared to $21.6 million for the same period in 2024, primarily due to a $2.7 million write-down on a foreclosed property, combined with the addition of Lakeland. Net occupancy expense increased $7.3 million to $26.9 million for the six months ended June 30, 2025, compared to the same period in 2024, primarily due to increases in depreciation and maintenance expense related to the addition of Lakeland. Data processing expense increased $4.0 million to $19.2 million for the six months ended June 30, 2025, compared to $15.2 million for the six months ended June 30, 2024, primarily due to the addition of Lakeland, while FDIC insurance increased $1.4 million to $6.7 million for the six months ended June 30, 2025, primarily due to the addition of Lakeland. Partially offsetting these increases to non-interest expense, merger-related expenses decreased $21.1 million for the six months ended June 30, 2025.

Income Tax Expense

For the six months ended June 30, 2025, the Company's income tax expense was $58.3 million with an effective tax rate of 30.0%, compared with income tax expense of $1.1 million for the six months ended June 30, 2024. The increase in tax expense for the six months ended June 30, 2025 compared with the same period last year was largely due to an increase in taxable income, combined with a prior year $5.3 million tax benefit related to the revaluation of deferred tax assets to reflect the imposition by the State of New Jersey of a 2.5% Corporate Transit Fee, effective January 1, 2024. The prior year income tax expense was favorably impacted by the Lakeland merger.

Asset Quality

The Company’s total non-performing loans as of June 30, 2025 were $107.2 million, or 0.56% of total loans held for investment, compared to $103.2 million, or 0.54% of total loans as of March 31, 2025 and $72.1 million, or 0.37% of total loans as of December 31, 2024. The $3.9 million increase in non-performing loans as of June 30, 2025, compared to the trailing quarter, consisted of a $3.1 million increase in non-performing commercial loans, a $2.0 million increase in non-performing residential mortgage loans and a $195,000 increase in non-performing consumer loans, partially offset by a $1.2 million decrease in non-performing multi-family loans, a $103,000 decrease in non-performing commercial mortgage loans and a $28,000 decrease in non-performing construction loans. As of June 30, 2025, impaired loans totaled $92.7 million with related specific reserves of $11.4 million, compared with impaired loans totaling $86.1 million with related specific reserves of $7.9 million as of March 31, 2025. As of December 31, 2024, impaired loans totaled $55.4 million with related specific reserves of $7.5 million.

As of June 30, 2025, the Company’s allowance for credit losses related to the loan portfolio was 0.98% of total loans, compared to 1.02% and 1.04% as of March 31, 2025 and December 31, 2024, respectively. The allowance for credit losses decreased $5.6 million to $187.9 million as of June 30, 2025, from $193.4 million as of December 31, 2024. The decrease in the allowance for credit losses on loans as of June 30, 2025 compared to December 31, 2024 was due to a $2.3 million benefit to the provision for credit losses on loans, combined with net charge-offs of $3.2 million.

The following table sets forth accruing past due loans and non-accrual loans held for investment on the dates indicated, as well as delinquency statistics and certain asset quality ratios.

 

 

 

June 30, 2025

 

March 31, 2025

 

December 31, 2024

 

 

Number
of
Loans

 

Principal
Balance
of Loans

 

Number
of
Loans

 

Principal
Balance
of Loans

 

Number
of
Loans

 

Principal
Balance
of Loans

 

 

(Dollars in thousands)

Accruing past due loans:

 

 

 

 

 

 

 

 

 

 

 

 

30 to 59 days past due:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial mortgage loans

 

1

 

$

129

 

 

8

 

$

13,696

 

 

7

 

$

8,538

 

Multi-family mortgage loans

 

 

 

 

 

1

 

 

7,433

 

 

 

 

 

Construction loans

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage loans

 

20

 

 

5,541

 

 

27

 

 

6,905

 

 

22

 

 

6,388

 

Total mortgage loans

 

21

 

 

5,670

 

 

36

 

 

28,034

 

 

29

 

 

14,926

 

Commercial loans

 

4

 

 

997

 

 

23

 

 

11,372

 

 

9

 

 

3,026

 

Consumer loans

 

30

 

 

1,592

 

 

22

 

 

1,604

 

 

47

 

 

3,152

 

Total 30 to 59 days past due

 

55

 

$

8,259

 

 

95

 

$

42,060

 

 

85

 

$

21,104

 

 

 

 

 

 

 

 

 

 

 

 

 

 

60 to 89 days past due:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial mortgage loans

 

1

 

$

347

 

 

2

 

$

196

 

 

4

 

$

3,954

 

Multi-family mortgage loans

 

1

 

 

431

 

 

 

 

 

 

 

 

 

Construction loans

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage loans

 

16

 

 

3,816

 

 

18

 

 

5,009

 

 

17

 

 

5,049

 

Total mortgage loans

 

18

 

 

4,594

 

 

20

 

 

5,205

 

 

21

 

 

9,003

 

Commercial loans

 

13

 

 

4,389

 

 

8

 

 

1,955

 

 

3

 

 

1,117

 

Consumer loans

 

9

 

 

699

 

 

12

 

 

854

 

 

15

 

 

856

 

Total 60 to 89 days past due

 

40

 

 

9,682

 

 

47

 

 

8,908

 

 

39

 

 

10,976

 

Total accruing past due loans

 

95

 

$

17,941

 

 

142

 

$

50,968

 

 

124

 

$

32,080

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial mortgage loans

 

15

 

$

42,828

 

 

18

 

$

42,931

 

 

17

 

$

20,883

 

Multi-family mortgage loans

 

3

 

 

6,143

 

 

5

 

 

7,294

 

 

6

 

 

7,498

 

Construction loans

 

3

 

 

18,901

 

 

3

 

 

18,929

 

 

2

 

 

13,246

 

Residential mortgage loans

 

25

 

 

7,209

 

 

22

 

 

5,246

 

 

23

 

 

4,535

 

Total mortgage loans

 

46

 

 

75,081

 

 

48

 

 

74,400

 

 

48

 

 

46,162

 

Commercial loans

 

34

 

 

30,531

 

 

32

 

 

23,580

 

 

32

 

 

21,892

 

Consumer loans

 

21

 

 

1,547

 

 

19

 

 

1,352

 

 

23

 

 

1,656

 

Total non-accrual loans

 

101

 

$

107,159

 

 

99

 

$

99,332

 

 

103

 

$

69,710

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans to total loans held for investment

 

 

 

 

0.56

%

 

 

 

 

0.53

%

 

 

 

 

0.37

%

Allowance for loan losses to total non-performing loans

 

 

 

 

175.32

%

 

 

 

 

185.78

%

 

 

 

 

268.43

%

Allowance for loan losses to total loans held for investment

 

 

 

 

0.98

%

 

 

 

 

1.02

%

 

 

 

 

1.04

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

There were no non-accrual or past due loans held for sale as of June 30. 2025. As of March 31, 2025 and December 31, 2024, total non-accrual loans held for sale, which are not in the tables above, totaled $3.9 million and $2.4 million, respectively. Additionally, as of March 31, 2025 and December 31, 2024, total past due loans held for sale, including non-accrual loans held for sale, totaled $5.8 million and $4.8 million, respectively.

As of June 30, 2025 and December 31, 2024, the Company held foreclosed assets of $1.0 million and $9.5 million, respectively. During the six months ended June 30, 2025, there was a write-down of one foreclosed commercial property of $2.7 million based on a contracted sales price. The sale of this property closed in the second quarter of 2025, which reduced foreclosed assets by an additional $5.8 million. Foreclosed assets as of June 30, 2025 were comprised of one commercial property. Total non-performing assets as of June 30, 2025 increased $26.6 million to $108.1 million, or 0.44% of total assets, from $81.5 million, or 0.34% of total assets at December 31, 2024.

Balance Sheet Summary

Total assets as of June 30, 2025 were $24.55 billion, a $495.5 million increase from December 31, 2024. The increase in total assets was primarily due to a $445.5 million increase in loans held for investment and a $246.5 million increase in total investments, partially offset by a $155.5 million decrease in loans held for sale, and decreases in intangibles and other assets.

The Company’s loans held for investment portfolio totaled $19.10 billion as of June 30, 2025 and $18.66 billion as of December 31, 2024. The loan portfolio consisted of the following:

 

 

 

 

 

 

 

June 30, 2025

 

March 31, 2025

 

December 31, 2024

 

(Dollars in thousands)

Mortgage loans:

 

 

 

 

 

Commercial

$

7,313,904

 

 

$

7,295,651

 

 

$

7,228,078

 

Multi-family

 

3,517,509

 

 

 

3,458,190

 

 

 

3,382,933

 

Construction

 

751,914

 

 

 

756,356

 

 

 

823,503

 

Residential

 

1,985,355

 

 

 

1,994,404

 

 

 

2,010,637

 

Total mortgage loans

 

13,568,682

 

 

 

13,504,601

 

 

 

13,445,151

 

Commercial loans

 

4,688,888

 

 

 

4,506,215

 

 

 

4,447,672

 

Mortgage warehouse lines

 

240,134

 

 

 

176,687

 

 

 

160,928

 

Consumer loans

 

617,190

 

 

 

613,453

 

 

 

613,819

 

Total gross loans

 

19,114,894

 

 

 

18,800,956

 

 

 

18,667,570

 

Premiums on purchased loans

 

1,308

 

 

 

1,337

 

 

 

1,338

 

Net deferred fees and unearned discounts

 

(11,372

)

 

 

(10,922

)

 

 

(9,538

)

Total loans

$

19,104,830

 

 

$

18,791,371

 

 

$

18,659,370

 

 

 

 

 

 

 

 

 

 

 

 

 

During the three months ended June 30, 2025, the loans held for investment portfolio had net increases of $182.7 million of commercial loans, $63.4 million of mortgage warehouse lines, $59.3 million of multi-family loans and $18.3 million of commercial mortgage loans, partially offset by net decreases of $9.0 million of residential mortgage loans, $4.4 million of construction loans and $3.7 million of consumer loans. Total commercial loans, including mortgage warehouse lines, commercial mortgage, multi-family and construction loans, represented 86.4% of the loan portfolio as of June 30, 2025, compared to 85.9% as of December 31, 2024.

For the six months ended June 30, 2025, loan funding, including advances on lines of credit, totaled $4.30 billion, compared with $2.53 billion for the same period in 2024.

As of June 30, 2025, the Company’s unfunded loan commitments totaled $3.74 billion, including commitments of $2.30 billion in commercial loans, $511.9 million in construction loans and $212.7 million in commercial mortgage loans. Unfunded loan commitments as of December 31, 2024 and June 30, 2024 were $2.73 billion and $3.01 billion, respectively.

The loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $2.59 billion as of June 30, 2025, compared to $1.79 billion and $1.67 billion as of December 31, 2024 and June 30, 2024, respectively.

Total investment securities were $3.47 billion as of June 30, 2025, a $246.5 million increase from December 31, 2024. This increase was primarily due to purchases of mortgage-backed securities and a decrease in unrealized losses on available for sale debt securities.

Total deposits increased $84.7 million during the six months ended June 30, 2025, to $18.71 billion. Total time deposits increased $99.3 million to $3.27 billion as of June 30, 2025, while total savings and demand deposit accounts decreased $14.6 million to $15.44 billion as of June 30, 2025. The increase in time deposits consisted of a $108.1 million increase in brokered time deposits, partially offset by an $8.8 million decrease in retail time deposits. The decrease in savings and demand deposits was largely attributable to a $50.7 million decrease in savings deposits and a $36.8 million decrease in non-interest bearing demand deposits, partially offset by a $52.2 million increase in money market deposits and a $20.7 million increase in interest bearing demand deposits.

Borrowed funds increased $354.2 million during the six months ended June 30, 2025, to $2.37 billion. Borrowed funds represented 9.7% of total assets as of June 30, 2025, an increase from 8.4% as of December 31, 2024.

Stockholders’ equity increased $106.3 million during the six months ended June 30, 2025, to $2.71 billion, primarily due to net income earned for the period and a decrease in unrealized losses on available for sale debt securities, partially offset by cash dividends paid to stockholders. For the three and six months ended June 30, 2025, common stock repurchases totaled 55,826 shares at an average cost of $17.83 per share and 156,570 shares at an average cost of $18.07 per share, respectively, all of which were made in connection with withholding to cover income taxes on the vesting of stock-based compensation. As of June 30, 2025, approximately 816,000 shares remained eligible for repurchase under the current stock repurchase authorization. Book value per share and tangible book value per share(1) as of June 30, 2025 were $20.73 and $14.60, respectively, compared with $19.93 and $13.66, respectively, as of December 31, 2024.

About the Company

Provident Financial Services, Inc. is the holding company for Provident Bank, a community-oriented bank offering "Commitment you can count on" since 1839. Provident Bank provides a comprehensive array of financial products and services through its network of branches throughout New Jersey, Bucks, Lehigh and Northampton counties in Pennsylvania, as well as Orange, Queens and Nassau Counties in New York. The Bank also provides fiduciary and wealth management services through its wholly owned subsidiary, Beacon Trust Company and insurance services through its wholly owned subsidiary, Provident Protection Plus, Inc.

Post Earnings Conference Call

Representatives of the Company will hold a conference call for investors on Thursday, July 24, 2025 at 2:00 p.m. Eastern Time to discuss the Company’s financial results for the quarter ended June 30, 2025. The call may be accessed by dialing 1-888-412-4131 (United States Toll Free) and 1-646-960-0134 (United States Local). Speakers will need to enter conference ID code (3610756) before being met by a live operator. Internet access to the call is also available (listen only) at provident.bank by going to Investor Relations and clicking on "Webcast."

A supplemental 2nd Quarter results investor presentation is also available on our investor relations website under “Presentations.”

Forward Looking Statements

Certain statements contained herein are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” "project," "intend," “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those set forth in Item 1A of the Company's Annual Report on Form 10-K, as supplemented by its Quarterly Reports on Form 10-Q, and those related to the economic environment, particularly in the market areas in which the Company operates, inflation and unemployment, competitive products and pricing, real estate values, fiscal and monetary policies of the U.S. Government, tariffs, the effects of the recent turmoil in the banking industry, changes in accounting policies and practices that may be adopted by the regulatory agencies and the accounting standards setters, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, potential goodwill impairment, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets, the availability of and costs associated with sources of liquidity, and the impact of a potential shutdown of the federal government.

The Company cautions readers not to place undue reliance on any such forward-looking statements which speak only as of the date they are made. The Company advises readers that the factors listed above could affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not assume any duty, and does not undertake, to update any forward-looking statements to reflect events or circumstances after the date of this statement.

Footnotes

(1) Annualized adjusted pre-tax, pre-provision return on average assets, annualized return on average tangible equity, tangible common equity capital ratio, tangible book value per share, annualized adjusted non-interest expense as a percentage of average assets and the efficiency ratio are non-GAAP financial measures. Please refer to the Notes following the Consolidated Financial Highlights which contain the reconciliation of GAAP to non-GAAP financial measures and the associated calculations.

 

 

 

 

 

 

 

 

 

 

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

Consolidated Financial Highlights

(Dollars in Thousands, except share data) (Unaudited)

 

 

 

 

 

At or for the
Three Months Ended

 

At or for the
Six Months Ended

 

June 30,

 

March 31,

 

June 30,

 

June 30,

 

June 30,

 

 

2025

 

 

 

2025

 

 

 

2024

 

 

 

2025

 

 

 

2024

 

Statement of Income

 

 

 

 

 

 

 

 

 

Net interest income

$

187,094

 

 

$

181,728

 

 

$

141,506

 

 

$

368,822

 

 

$

235,176

 

Provision (benefit) charge for credit losses

 

(2,888

)

 

 

638

 

 

 

69,705

 

 

 

(2,250

)

 

 

69,385

 

Non-interest income

 

27,075

 

 

 

27,030

 

 

 

22,275

 

 

 

54,105

 

 

 

43,081

 

Non-interest expense

 

114,614

 

 

 

116,267

 

 

 

115,394

 

 

 

230,881

 

 

 

187,221

 

Income (loss) before income tax expense

 

102,443

 

 

 

91,853

 

 

 

(21,318

)

 

 

194,296

 

 

 

21,651

 

Net income (loss)

 

71,981

 

 

 

64,028

 

 

 

(11,485

)

 

 

136,009

 

 

 

20,596

 

Diluted earnings per share

$

0.55

 

 

$

0.49

 

 

$

(0.11

)

 

$

1.04

 

 

$

0.23

 

Interest rate spread

 

2.74

%

 

 

2.73

%

 

 

2.58

%

 

 

2.73

%

 

 

2.46

%

Net interest margin

 

3.36

%

 

 

3.34

%

 

 

3.21

%

 

 

3.35

%

 

 

3.08

%

 

 

 

 

 

 

 

 

 

 

Profitability

 

 

 

 

 

 

 

 

 

Annualized return on average assets

 

1.19

%

 

 

1.08

%

 

 

(0.24)

%

 

 

1.13

%

 

 

0.25

%

Annualized adjusted return on average assets (1)

 

1.19

%

 

 

1.11

%

 

 

0.06

%

 

 

1.15

%

 

 

0.49

%

Annualized return on average equity

 

10.76

%

 

 

9.84

%

 

 

(2.17)

%

 

 

10.31

%

 

 

2.17

%

Annualized adjusted return on average equity (1)

 

10.76

%

 

 

10.13

%

 

 

0.53

%

 

 

10.45

%

 

 

4.28

%

Annualized return on average tangible equity (4)

 

16.79

%

 

 

15.73

%

 

 

(3.15)

%

 

 

16.27

%

 

 

3.06

%

Annualized adjusted return on average tangible equity (1)

 

16.79

%

 

 

16.15

%

 

 

0.001

%

 

 

16.48

%

 

 

6.27

%

Annualized adjusted non-interest expense to average assets (4)

 

1.89

%

 

 

1.92

%

 

 

2.02

%

 

 

1.92

%

 

 

2.01

%

Efficiency ratio (6)

 

53.52

%

 

 

54.43

%

 

 

57.86

%

 

 

54.60

%

 

 

59.06

%

 

 

 

 

 

 

 

 

 

 

Asset Quality

 

 

 

 

 

 

 

 

 

Non-accrual loans

 

 

$

103,224

 

 

 

 

$

107,159

 

 

$

67,868

 

90+ and still accruing

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans

 

 

 

103,224

 

 

 

 

 

107,159

 

 

 

67,868

 

Foreclosed assets

 

 

 

6,755

 

 

 

 

 

963

 

 

 

11,119

 

Non-performing assets

 

 

 

109,979

 

 

 

 

 

108,122

 

 

 

78,987

 

Non-performing loans to total loans held for investment

 

 

 

0.53

%

 

 

 

 

0.56

%

 

 

0.36

%

Non-performing assets to total assets

 

 

 

0.45

%

 

 

 

 

0.44

%

 

 

0.33

%

Allowance for loan losses

 

 

$

191,770

 

 

 

 

$

187,871

 

 

$

188,331

 

Allowance for loan losses to total non-performing loans

 

 

 

185.78

%

 

 

 

 

175.32

%

 

 

277.50

%

Allowance for loan losses to total loans held for investment

 

 

 

1.02

%

 

 

 

 

0.98

%

 

 

1.00

%

Net loan charge-offs

$

1,249

 

 

$

1,987

 

 

$

2,680

 

 

$

3,236

 

 

$

4,622

 

Annualized net loan charge-offs to average total loans

 

0.03

%

 

 

0.04

%

 

 

0.07

%

 

 

0.03

%

 

 

0.07

%

 

 

 

 

 

 

 

 

 

 

Average Balance Sheet Data

 

 

 

 

 

 

 

 

 

Assets

$

24,349,808

 

 

$

24,049,318

 

 

$

19,197,041

 

 

$

24,200,393

 

 

$

16,645,404

 

Loans, net

 

18,827,305

 

 

 

18,590,877

 

 

 

14,649,413

 

 

 

18,709,743

 

 

 

12,659,202

 

Earning assets

 

22,329,230

 

 

 

21,946,053

 

 

 

17,385,819

 

 

 

22,138,700

 

 

 

15,093,217

 

Core deposits

 

15,222,027

 

 

 

15,497,343

 

 

 

12,257,244

 

 

 

15,358,925

 

 

 

10,693,244

 

Borrowings

 

2,490,379

 

 

 

1,918,069

 

 

 

2,158,193

 

 

 

2,205,805

 

 

 

2,049,587

 

Interest-bearing liabilities

 

17,612,934

 

 

 

17,297,892

 

 

 

13,856,039

 

 

 

17,456,284

 

 

 

11,965,072

 

Stockholders' equity

 

2,684,342

 

 

 

2,638,361

 

 

 

2,127,469

 

 

 

2,661,478

 

 

 

1,912,820

 

Average yield on interest-earning assets

 

5.68

%

 

 

5.63

%

 

 

5.67

%

 

 

5.65

%

 

 

5.43

%

Average cost of interest-bearing liabilities

 

2.94

%

 

 

2.90

%

 

 

3.09

%

 

 

2.92

%

 

 

2.97

%

 

 

 

 

 

 

 

 

 

 

Notes and Reconciliation of GAAP and Non-GAAP Financial Measures
(Dollars in Thousands, except share data)

The Company has presented the following non-GAAP (U.S. Generally Accepted Accounting Principles) financial measures because it believes that these measures provide useful and comparative information to assess trends in the Company’s results of operations and financial condition. Presentation of these non-GAAP financial measures is consistent with how the Company evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Company’s industry. Investors should recognize that the Company’s presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and the Company strongly encourages a review of its condensed consolidated financial statements in their entirety.

 

 

 

 

 

 

 

 

 

 

 

(1) Annualized Adjusted Return on Average Assets, Equity and Tangible Equity

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

March 31,

 

June 30,

 

June 30,

 

June 30,

 

 

 

2025

 

 

 

2025

 

 

 

2024

 

 

 

2025

 

 

 

2024

 

Net Income

 

$

71,981

 

 

$

64,028

 

 

$

(11,485

)

 

$

136,009

 

 

$

20,596

 

Write-down on ORE property

 

 

 

 

 

2,690

 

 

 

 

 

 

2,690

 

 

 

 

Merger-related transaction costs

 

 

 

 

 

 

 

 

18,915

 

 

 

 

 

 

21,117

 

Less: income tax expense

 

 

 

 

 

(809

)

 

 

(4,625

)

 

 

(809

)

 

 

(4,649

)

Annualized adjusted net income

 

$

71,981

 

 

 

65,909

 

 

$

2,805

 

 

$

137,890

 

 

$

37,064

 

Less: Amortization of Intangibles (net of tax)

 

 

6,639

 

 

 

6,642

 

 

 

4,532

 

 

$

13,281.5018

 

 

$

5,025.1308

 

Annualized adjusted net income for annualized adjusted return on average tangible equity

 

$

78,620

 

 

$

72,551

 

 

$

7,337

 

 

$

151,171

 

 

$

42,089

 

 

 

 

 

 

 

 

 

 

 

 

Annualized Adjusted Return on Average Assets

 

 

1.19

%

 

 

1.11

%

 

 

0.06

%

 

 

1.15

%

 

 

0.45

%

Annualized Adjusted Return on Average Equity

 

 

10.76

%

 

 

10.13

%

 

 

0.53

%

 

 

10.45

%

 

 

3.90

%

Annualized Adjusted Return on Average Tangible Equity

 

 

16.79

%

 

 

16.15

%

 

 

2.01

%

 

 

16.48

%

 

 

6.25

%

 

 

 

 

 

 

 

 

 

 

 

(2) Annualized adjusted pre-tax, pre-provision ("PTPP") returns on average assets, average equity and average tangible equity

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

March 31,

 

June 30,

 

June 30,

 

June 30,

 

 

 

2025

 

 

 

2025

 

 

 

2024

 

 

 

2025

 

 

 

2024

 

Net income (loss)

 

$

71,981

 

 

$

64,028

 

 

$

(11,485

)

 

$

136,009

 

 

$

20,596

 

Adjustments to net income (loss):

 

 

 

 

 

 

 

 

 

 

Provision (benefit) charge for credit losses

 

 

(2,888

)

 

 

638

 

 

 

69,705

 

 

 

(2,250

)

 

 

69,385

 

Write-down on ORE property

 

 

 

 

2,690

 

 

 

 

 

 

 

Net loss on Lakeland bond sale

 

 

 

 

 

 

 

 

2,839

 

 

 

 

 

 

2,839

 

Merger-related transaction costs

 

 

 

 

 

 

 

 

18,915

 

 

 

 

 

 

21,117

 

Income tax expense (benefit)

 

 

30,462

 

 

 

27,825

 

 

 

(9,833

)

 

 

58,287

 

 

 

1,055

 

PTPP income

 

$

99,555

 

 

$

95,181

 

 

$

70,141

 

 

$

194,736

 

 

$

114,992

 

 

 

 

 

 

 

 

 

 

 

 

Annualized PTPP income

 

$

399,314

 

 

$

386,012

 

 

$

282,106

 

 

$

392,700

 

 

$

231,248

 

Average assets

 

$

24,349,808

 

 

$

24,049,318

 

 

$

19,197,041

 

 

$

24,200,393

 

 

$

16,645,404

 

Average equity

 

$

2,684,342

 

 

$

2,638,361

 

 

$

2,127,469

 

 

$

2,661,478

 

 

$

1,912,820

 

Average tangible equity

 

$

1,877,923

 

 

$

1,822,407

 

 

$

1,468,630

 

 

$

1,850,318

 

 

$

1,354,553

 

 

 

 

 

 

 

 

 

 

 

 

Annualized PTPP return on average assets

 

 

1.64

%

 

 

1.61

%

 

 

1.47

%

 

 

1.62

%

 

 

1.39

%

Annualized PTPP return on average equity

 

 

14.88

%

 

 

14.63

%

 

 

13.26

%

 

 

14.75

%

 

 

12.09

%

Annualized PTPP return on average tangible equity

 

 

21.26

%

 

 

21.18

%

 

 

19.21

%

 

 

21.22

%

 

 

17.07

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3) Tangible Common Equity Ratio, Book and Tangible Book Value per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

March 31,

 

December 31,

 

 

 

 

 

 

 

2025

 

 

 

2025

 

 

 

2024

 

Total assets

 

 

 

 

 

$

24,547,286

 

 

$

24,224,759

 

 

$

24,051,825

 

Less: total intangible assets

 

 

 

 

 

 

800,232

 

 

 

809,725

 

 

 

819,230

 

Total tangible assets

 

 

 

 

 

$

24,547,286

 

 

$

24,224,759

 

 

$

24,051,825

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

 

 

 

 

$

2,707,555

 

 

$

2,658,794

 

 

$

2,601,207

 

Less: total intangible assets

 

 

 

 

 

 

800,232

 

 

 

809,725

 

 

 

819,230

 

Total tangible stockholders' equity

 

 

 

 

 

$

1,907,323

 

 

$

1,849,069

 

 

$

1,781,977

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity ratio

 

 

 

 

 

 

8.03

%

 

 

7.90

%

 

 

7.67

%

Shares outstanding

 

 

 

 

 

 

130,624,243

 

 

 

130,661,195

 

 

 

130,489,493

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share (total stockholders' equity/shares outstanding)

 

 

 

 

 

$

20.73

 

 

$

20.35

 

 

$

19.93

 

Tangible book value per share (total tangible stockholders' equity/shares outstanding)

 

 

 

 

 

$

14.60

 

 

$

14.15

 

 

$

13.66

 

 

 

 

 

 

 

 

 

 

 

 

(4) Annualized Return on Average Tangible Equity

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

March 31,

 

June 30,

 

June 30,

 

June 30,

 

 

 

2025

 

 

 

2025

 

 

 

2024

 

 

 

2025

 

 

 

2024

 

Total average stockholders' equity

 

$

2,684,342

 

 

$

2,638,361

 

 

$

2,127,469

 

 

$

2,661,478

 

 

$

1,912,820

 

Less: total average intangible assets

 

 

806,419

 

 

 

815,954

 

 

 

658,839

 

 

 

811,160

 

 

 

558,267

 

Total average tangible stockholders' equity

 

$

1,877,923

 

 

$

1,822,407

 

 

$

1,468,630

 

 

$

1,850,318

 

 

$

1,354,553

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

71,981

 

 

$

64,028

 

 

$

(11,485

)

 

$

136,009

 

 

$

20,596

 

Less: Amortization of Intangibles, net of tax

 

 

6,639

 

 

 

6,642,149

 

 

 

4,532

 

 

 

13,282

 

 

 

5,025

 

Total net income (loss)

 

$

78,620

 

 

$

70,670

 

 

$

(6,953

)

 

$

149,291

 

 

$

25,621

 

 

 

 

 

 

 

 

 

 

 

 

Annualized return on average tangible equity (net income/total average tangible stockholders' equity)

 

 

16.79

%

 

 

15.73

%

 

 

(1.90)

%

 

 

16.27

%

 

 

3.80

%

 

 

 

 

 

 

 

 

 

 

 

(5) Annualized Adjusted Non-Interest Expense to Average Assets

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

March 31,

 

June 30,

 

June 30,

 

June 30,

 

 

 

2025

 

 

 

2025

 

 

 

2024

 

 

 

2025

 

 

 

2024

 

Reported non-interest expense

 

$

114,614

 

 

$

116,267

 

 

$

115,394

 

 

$

230,881

 

 

$

187,221

 

Adjustments to non-interest expense:

 

 

 

 

 

 

 

 

 

 

Write-down on ORE property

 

 

 

 

 

2,690

 

 

 

 

 

 

 

 

 

 

Merger-related transaction costs

 

 

 

 

 

 

 

 

18,915

 

 

 

 

 

 

21,117

 

Adjusted non-interest expense

 

$

114,614

 

 

$

113,577

 

 

$

96,479

 

 

$

230,881

 

 

$

166,104

 

 

 

 

 

 

 

 

 

 

 

 

Annualized adjusted non-interest expense

 

$

459,715

 

 

$

388,036

 

 

$

388,036

 

 

$

465,589

 

 

$

334,033

 

 

 

 

 

 

 

 

 

 

 

 

Average assets

 

$

24,349,808

 

 

$

24,049,318

 

 

$

19,197,041

 

 

$

24,200,393

 

 

$

16,645,404

 

 

 

 

 

 

 

 

 

 

 

 

Annualized adjusted non-interest expense/average assets

 

 

1.89

%

 

 

1.92

%

 

 

2.02

%

 

 

1.92

%

 

 

2.01

%

 

 

 

 

 

 

 

 

 

 

 

(6) Efficiency Ratio Calculation

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

March 31,

 

June 30,

 

June 30,

 

June 30,

 

 

 

2025

 

 

 

2025

 

 

 

2024

 

 

 

2025

 

 

 

2024

 

Net interest income

 

$

187,094

 

 

$

181,728

 

 

$

141,506

 

 

$

368,822

 

 

$

235,176

 

Reported non-interest income

 

 

27,075

 

 

 

27,030

 

 

 

22,275

 

 

 

54,105

 

 

 

43,081

 

Adjustments to non-interest income:

 

 

 

 

 

 

 

 

 

 

Net (gain) loss on securities transactions

 

 

 

 

 

(87

)

 

 

(2,973

)

 

 

(87

)

 

 

2,974

 

Adjusted non-interest income

 

 

27,075

 

 

 

26,943

 

 

 

25,248

 

 

 

54,018

 

 

 

46,055

 

Total income

 

$

214,169

 

 

$

208,671

 

 

$

166,754

 

 

$

422,840

 

 

$

281,231

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted non-interest expense

 

$

114,614

 

 

$

113,577

 

 

$

96,479

 

 

$

230,881

 

 

$

166,104

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio (adjusted non-interest expense/income)

 

 

53.52

%

 

 

54.43

%

 

 

57.86

%

 

 

54.60

%

 

 

59.06

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

Consolidated Statements of Financial Condition

June 30, 2025 (Unaudited) and December 31, 2024

(Dollars in Thousands)

 

 

 

 

Assets

June 30, 2025

 

December 31, 2024

Cash and cash equivalents

$

258,925

 

 

$

205,939

 

Available for sale debt securities, at fair value

 

3,019,796

 

 

 

2,768,915

 

Held to maturity debt securities, net of allowance (fair value of $20,000 as of June 30, 2025 (unaudited) and $14,000 as of December 31, 2024)

 

308,704

 

 

 

327,623

 

Equity securities, at fair value

 

19,410

 

 

 

19,110

 

Federal Home Loan Bank stock

 

127,021

 

 

 

112,767

 

Loans held for sale

 

6,922

 

 

 

162,453

 

Loans held for investment

 

19,104,830

 

 

 

18,659,370

 

Less allowance for credit losses

 

187,871

 

 

 

193,432

 

Net loans

 

18,923,881

 

 

 

18,628,391

 

Foreclosed assets, net

 

963

 

 

 

9,473

 

Banking premises and equipment, net

 

115,709

 

 

 

119,622

 

Accrued interest receivable

 

92,714

 

 

 

91,160

 

Intangible assets

 

800,232

 

 

 

819,230

 

Bank-owned life insurance

 

409,949

 

 

 

405,893

 

Other assets

 

469,982

 

 

 

543,702

 

Total assets

$

24,547,286

 

 

$

24,051,825

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

Deposits:

 

 

 

Demand deposits

$

13,812,120

 

 

$

13,775,991

 

Savings deposits

 

1,628,971

 

 

 

1,679,667

 

Certificates of deposit of $250,000 or more

 

842,389

 

 

 

789,342

 

Other time deposits

 

2,425,044

 

 

 

2,378,813

 

Total deposits

 

18,708,524

 

 

 

18,623,813

 

Mortgage escrow deposits

 

50,291

 

 

 

42,247

 

Borrowed funds

 

2,374,660

 

 

 

2,020,435

 

Subordinated debentures

 

404,098

 

 

 

401,608

 

Other liabilities

 

302,158

 

 

 

362,515

 

Total liabilities

 

21,839,731

 

 

 

21,450,618

 

 

 

 

 

Stockholders' equity:

 

 

 

Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued

 

 

 

 

 

Common stock, $0.01 par value, 200,000,000 shares authorized, 137,565,966 shares issued and 130,624,243 shares outstanding as of June 30, 2025 and 130,489,493 outstanding as of December 31, 2024

 

1,376

 

 

 

1,376

 

Additional paid-in capital

 

1,839,314

 

 

 

1,834,495

 

Retained earnings

 

1,061,897

 

 

 

989,111

 

Accumulated other comprehensive loss

 

(103,770

)

 

 

(135,355

)

Treasury stock

 

(91,262

)

 

 

(88,420

)

Total stockholders' equity

 

2,707,555

 

 

 

2,601,207

 

Total liabilities and stockholders' equity

$

24,547,286

 

 

$

24,051,825

 

 


 

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

Consolidated Statements of Income

Three months ended June 30, 2025, March 31, 2025 and June 30, 2024, and six months ended June 30, 2025 and 2024 (Unaudited)

(Dollars in Thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

March 31,

 

June 30,

 

June 30,

 

June 30,

 

 

2025

 

 

 

2025

 

 

2024

 

 

 

2025

 

 

 

2024

 

Interest and dividend income:

 

 

 

 

 

 

 

 

 

Real estate secured loans

$

192,792

 

 

$

187,054

 

$

156,318

 

 

$

379,845

 

 

$

263,774

 

Commercial loans

 

78,854

 

 

 

75,819

 

 

58,532

 

 

 

154,673

 

 

 

94,632

 

Consumer loans

 

10,464

 

 

 

10,158

 

 

8,351

 

 

 

20,623

 

 

 

12,874

 

Available for sale debt securities, equity securities and Federal Home Loan Bank stock

 

31,444

 

 

 

29,644

 

 

20,394

 

 

 

61,088

 

 

 

32,724

 

Held to maturity debt securities

 

1,966

 

 

 

1,996

 

 

2,357

 

 

 

3,962

 

 

 

4,625

 

Deposits, federal funds sold and other short-term investments

 

788

 

 

 

675

 

 

1,859

 

 

 

1,463

 

 

 

3,041

 

Total interest income

 

316,308

 

 

 

305,346

 

 

247,811

 

 

 

621,654

 

 

 

411,670

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

Deposits

 

96,257

 

 

 

97,420

 

 

81,058

 

 

 

193,678

 

 

 

133,592

 

Borrowed funds

 

24,470

 

 

 

17,778

 

 

20,566

 

 

 

42,247

 

 

 

37,949

 

Subordinated debt

 

8,487

 

 

 

8,420

 

 

4,681

 

 

 

16,907

 

 

 

4,953

 

Total interest expense

 

129,214

 

 

 

123,618

 

 

106,305

 

 

 

252,832

 

 

 

176,494

 

Net interest income

 

187,094

 

 

 

181,728

 

 

141,506

 

 

 

368,822

 

 

 

235,176

 

Provision (benefit) charge for credit losses

 

(2,888

)

 

 

638

 

 

69,705

 

 

 

(2,250

)

 

 

69,385

 

Net interest income after provision for credit losses

 

189,982

 

 

 

181,090

 

 

71,801

 

 

 

371,072

 

 

 

165,791

 

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

Fees

 

10,736

 

 

 

9,655

 

 

8,699

 

 

 

20,391

 

 

 

14,611

 

Wealth management income

 

6,948

 

 

 

7,328

 

 

7,769

 

 

 

14,275

 

 

 

15,257

 

Insurance agency income

 

4,942

 

 

 

5,651

 

 

4,488

 

 

 

10,593

 

 

 

9,281

 

Bank-owned life insurance

 

2,585

 

 

 

2,092

 

 

3,323

 

 

 

4,678

 

 

 

5,140

 

Net gain (loss) on securities transactions

 

 

 

 

87

 

 

(2,973

)

 

 

87

 

 

 

(2,974

)

Other income

 

1,864

 

 

 

2,217

 

 

969

 

 

 

4,081

 

 

 

1,766

 

Total non-interest income

 

27,075

 

 

 

27,030

 

 

22,275

 

 

 

54,105

 

 

 

43,081

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

Compensation and employee benefits

 

63,249

 

 

 

62,366

 

 

54,888

 

 

 

125,615

 

 

 

94,936

 

Net occupancy expense

 

13,011

 

 

 

13,927

 

 

11,142

 

 

 

26,938

 

 

 

19,662

 

Data processing expense

 

9,599

 

 

 

9,605

 

 

8,433

 

 

 

19,203

 

 

 

15,217

 

FDIC Insurance

 

3,341

 

 

 

3,385

 

 

3,100

 

 

 

6,727

 

 

 

5,372

 

Amortization of intangibles

 

9,497

 

 

 

9,501

 

 

6,483

 

 

 

18,998

 

 

 

7,188

 

Advertising and promotion expense

 

1,429

 

 

 

1,060

 

 

1,171

 

 

 

2,489

 

 

 

2,137

 

Merger-related expenses

 

 

 

 

 

 

18,915

 

 

 

 

 

 

21,117

 

Other operating expenses

 

14,488

 

 

 

16,423

 

 

11,262

 

 

 

30,911

 

 

 

21,592

 

Total non-interest expense

 

114,614

 

 

 

116,267

 

 

115,394

 

 

 

230,881

 

 

 

187,221

 

Income (loss) before income tax expense

 

102,443

 

 

 

91,853

 

 

(21,318

)

 

 

194,296

 

 

 

21,651

 

Income tax expense (benefit)

 

30,462

 

 

 

27,825

 

 

(9,833

)

 

 

58,287

 

 

 

1,055

 

Net income (loss)

$

71,981

 

 

$

64,028

 

$

(11,485

)

 

$

136,009

 

 

$

20,596

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

$

0.55

 

 

$

0.49

 

$

(0.11

)

 

$

1.04

 

 

$

0.23

 

Average basic shares outstanding

 

130,484,287

 

 

 

130,325,393

 

 

102,957,521

 

 

 

130,405,490

 

 

 

89,108,775

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

$

0.55

 

 

$

0.49

 

$

(0.11

)

 

$

1.04

 

 

$

0.23

 

Average diluted shares outstanding

 

130,500,143

 

 

 

130,380,475

 

 

102,957,521

 

 

 

130,440,958

 

 

 

89,116,590

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

Net Interest Margin Analysis

Quarterly Average Balances

(Dollars in Thousands) (Unaudited)

 

June 30, 2025

 

March 31, 2025

 

June 30, 2024

 

Average Balance

 

Interest

 

Average
Yield/Cost

 

Average Balance

 

Interest

 

Average
Yield/Cost

 

Average Balance

 

Interest

 

Average
Yield/Cost

Interest-Earning Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

$

75,714

 

$

788

 

4.21

%

 

$

80,074

 

$

675

 

4.21

%

 

$

40,228

 

$

1,859

 

5.38

%

Available for sale debt securities

 

2,958,325

 

 

29,306

 

3.96

%

 

 

2,827,699

 

 

27,621

 

3.89

%

 

 

2,244,725

 

 

17,646

 

3.14

%

Held to maturity debt securities, net (1)

 

315,204

 

 

1,966

 

2.49

%

 

 

320,036

 

 

1,996

 

2.50

%

 

 

352,216

 

 

2,357

 

2.68

%

Equity securities, at fair value

 

19,235

 

 

 

%

 

 

19,840

 

 

 

%

 

 

10,373

 

 

 

%

Total securities

 

3,292,764

 

 

31,272

 

3.80

%

 

 

3,167,575

 

 

29,617

 

3.73

%

 

 

2,607,314

 

 

20,003

 

3.07

%

Federal Home Loan Bank stock

 

133,447

 

 

2,138

 

6.44

%

 

 

107,527

 

 

2,023

 

7.53

%

 

 

88,864

 

 

2,747

 

12.36

%

Net loans: (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total mortgage loans

 

13,398,650

 

 

192,792

 

5.77

%

 

 

13,297,168

 

 

187,054

 

5.70

%

 

 

10,674,109

 

 

156,318

 

5.81

%

Total commercial loans

 

4,816,237

 

 

78,854

 

6.57

%

 

 

4,684,572

 

 

75,819

 

6.56

%

 

 

3,514,602

 

 

58,532

 

6.62

%

Total consumer loans

 

612,418

 

 

10,464

 

6.85

%

 

 

609,137

 

 

10,158

 

6.76

%

 

 

460,702

 

 

8,351

 

7.29

%

Total net loans

 

18,827,305

 

 

282,110

 

6.01

%

 

 

18,590,877

 

 

273,031

 

5.95

%

 

 

14,649,413

 

 

223,201

 

6.05

%

Total interest-earning assets

$

22,329,230

 

$

316,308

 

5.68

%

 

$

21,946,053

 

$

305,346

 

5.63

%

 

$

17,385,819

 

$

247,810

 

5.67

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Interest Earning Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

150,464

 

 

 

 

 

 

134,205

 

 

 

 

 

 

37,621

 

 

 

 

Other assets

 

1,870,114

 

 

 

 

 

 

1,969,060

 

 

 

 

 

 

1,773,601

 

 

 

 

Total assets

$

24,349,808

 

 

 

 

 

$

24,049,318

 

 

 

 

 

$

19,197,041

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

$

9,874,149

 

$

64,803

 

2.63

%

 

$

10,095,570

 

$

65,433

 

2.63

%

 

$

7,935,543

 

$

58,179

 

2.95

%

Savings deposits

 

1,647,746

 

 

900

 

0.22

%

 

 

1,682,596

 

 

924

 

0.22

%

 

 

1,454,784

 

 

832

 

0.23

%

Time deposits

 

3,197,374

 

 

30,555

 

3.83

%

 

 

3,199,620

 

 

31,063

 

3.94

%

 

 

2,086,433

 

 

22,047

 

4.25

%

Total deposits

 

14,719,269

 

 

96,258

 

2.62

%

 

 

14,977,786

 

 

97,420

 

2.64

%

 

 

11,476,760

 

 

81,058

 

2.84

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowed funds

 

2,490,379

 

 

24,470

 

3.94

%

 

 

1,918,069

 

 

17,778

 

3.76

%

 

 

2,158,193

 

 

20,565

 

3.83

%

Subordinated debentures

 

403,286

 

 

8,487

 

8.44

%

 

 

402,037

 

 

8,420

 

8.49

%

 

 

221,086

 

 

4,681

 

8.52

%

Total interest-bearing liabilities

 

17,612,934

 

 

129,215

 

2.94

%

 

 

17,297,892

 

 

123,618

 

2.90

%

 

 

13,856,039

 

 

106,304

 

3.09

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Interest Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing deposits

 

3,700,132

 

 

 

 

 

 

3,719,177

 

 

 

 

 

 

2,866,917

 

 

 

 

Other non-interest bearing liabilities

 

352,400

 

 

 

 

 

 

393,888

 

 

 

 

 

 

346,616

 

 

 

 

Total non-interest bearing liabilities

 

4,052,532

 

 

 

 

 

 

4,113,065

 

 

 

 

 

 

3,213,533

 

 

 

 

Total liabilities

 

21,665,466

 

 

 

 

 

 

21,410,957

 

 

 

 

 

 

17,069,572

 

 

 

 

Stockholders' equity

 

2,684,342

 

 

 

 

 

 

2,638,361

 

 

 

 

 

 

2,127,469

 

 

 

 

Total liabilities and stockholders' equity

$

24,349,808

 

 

 

 

 

$

24,049,318

 

 

 

 

 

$

19,197,041

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

$

187,093

 

 

 

 

 

$

181,728

 

 

 

 

 

$

141,506

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest rate spread

 

 

 

 

2.74

%

 

 

 

 

 

2.73

%

 

 

 

 

 

2.58

%

Net interest-earning assets

$

4,716,296

 

 

 

 

 

$

4,648,161

 

 

 

 

 

$

3,529,780

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin (3)

 

 

 

 

3.36

%

 

 

 

 

 

3.34

%

 

 

 

 

 

3.21

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of interest-earning assets to total interest-bearing liabilities

1.27x

 

 

 

 

 

1.27x

 

 

 

 

 

1.25x

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

(1)

Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses.

(2)

Average outstanding balances are net of the allowance for loan losses, deferred loan fees and expenses, loan premiums and discounts and include non-accrual loans.

(3)

Annualized net interest income divided by average interest-earning assets.


 

 

 

 

The following table summarizes the quarterly net interest margin for the previous five quarters.

 

 

 

 

6/30/25

 

3/31/25

 

12/31/24

 

9/30/24

 

6/30/24

 

2nd Qtr.

 

1st Qtr.

 

4th Qtr.

 

3rd Qtr.

 

2nd Qtr.

Interest-Earning Assets:

 

 

 

 

 

 

 

 

 

Securities

3.80

%

 

3.73

%

 

3.55

%

 

3.56

%

 

3.07

%

Net loans

6.01

%

 

5.95

%

 

5.99

%

 

6.21

%

 

6.05

%

Total interest-earning assets

5.68

%

 

5.63

%

 

5.66

%

 

5.84

%

 

5.67

%

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Liabilities:

 

 

 

 

 

 

 

 

 

Deposits

2.62

%

 

2.64

%

 

2.81

%

 

2.96

%

 

2.84

%

Borrowings

3.94

%

 

3.76

%

 

3.64

%

 

3.73

%

 

3.83

%

Total interest-bearing liabilities

2.94

%

 

2.90

%

 

3.03

%

 

3.19

%

 

3.09

%

 

 

 

 

 

 

 

 

 

 

Interest rate spread

2.74

%

 

2.73

%

 

2.63

%

 

2.65

%

 

2.58

%

Net interest margin

3.36

%

 

3.34

%

 

3.28

%

 

3.31

%

 

3.21

%

 

 

 

 

 

 

 

 

 

 

Ratio of interest-earning assets to interest-bearing liabilities

1.27x

 

1.27x

 

1.27x

 

1.26x

 

1.25x

 

 

 

 

 

 

 

 

 

 


 

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

Net Interest Margin Analysis

Average Year to Date Balances

(Dollars in Thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2025

 

June 30, 2024

 

Average

 

 

 

Average

 

Average

 

 

 

Average

 

Balance

 

Interest

 

Yield/Cost

 

Balance

 

Interest

 

Yield/Cost

Interest-Earning Assets:

 

 

 

 

 

 

 

 

 

 

 

Deposits

$

77,882

 

$

1,463

 

4.21

%

 

$

32,901

 

$

3,041

 

5.38

%

Available for sale debt securities

 

2,893,373

 

 

56,927

 

3.91

%

 

 

1,959,549

 

 

27,669

 

2.82

%

Held to maturity debt securities, net (1)

 

317,607

 

 

3,962

 

2.50

%

 

 

354,731

 

 

4,625

 

2.61

%

Equity securities, at fair value

 

19,212

 

 

 

%

 

 

5,525

 

 

 

%

Total securities

 

3,230,192

 

 

60,889

 

3.75

%

 

 

2,319,805

 

 

32,294

 

2.78

%

Federal Home Loan Bank stock

 

120,883

 

 

4,161

 

6.92

%

 

 

81,309

 

 

5,055

 

12.43

%

Net loans: (2)

 

 

 

 

 

 

 

 

 

 

 

Total mortgage loans

 

13,351,451

 

 

379,845

 

5.73

%

 

 

9,326,838

 

 

263,774

 

5.61

%

Total commercial loans

 

4,747,564

 

 

154,673

 

6.57

%

 

 

2,953,842

 

 

94,632

 

6.39

%

Total consumer loans

 

610,728

 

 

20,623

 

6.81

%

 

 

378,522

 

 

12,874

 

6.84

%

Total net loans

 

18,709,743

 

 

555,141

 

5.98

%

 

 

12,659,202

 

 

371,280

 

5.83

%

Total interest-earning assets

$

22,138,700

 

$

621,654

 

5.65

%

 

$

15,093,217

 

$

411,670

 

5.43

%

 

 

 

 

 

 

 

 

 

 

 

 

Non-Interest Earning Assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

142,380

 

 

 

 

 

 

108,229

 

 

 

 

Other assets

 

1,919,313

 

 

 

 

 

 

1,443,958

 

 

 

 

Total assets

$

24,200,393

 

 

 

 

 

$

16,645,404

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

$

9,984,248

 

$

130,235

 

2.63

%

 

$

6,914,802

 

$

99,745

 

2.90

%

Savings deposits

 

1,665,075

 

 

1,824

 

0.22

%

 

 

1,308,983

 

 

1,469

 

0.23

%

Time deposits

 

3,198,491

 

 

61,618

 

3.88

%

 

 

1,575,801

 

 

32,378

 

4.13

%

Total deposits

 

14,847,814

 

 

193,677

 

2.63

%

 

 

9,799,586

 

 

133,592

 

2.74

%

Borrowed funds

 

2,205,805

 

 

42,247

 

3.86

%

 

 

2,049,587

 

 

37,949

 

3.75

%

Subordinated debentures

 

402,665

 

 

16,907

 

8.47

%

 

 

115,899

 

 

4,953

 

8.59

%

Total interest-bearing liabilities

$

17,456,284

 

$

252,831

 

2.92

%

 

$

11,965,072

 

$

176,494

 

2.97

%

 

 

 

 

 

 

 

 

 

 

 

 

Non-Interest Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing deposits

 

3,709,602

 

 

 

 

 

 

2,469,459

 

 

 

 

Other non-interest bearing liabilities

 

373,029

 

 

 

 

 

 

298,053

 

 

 

 

Total non-interest bearing liabilities

 

4,082,631

 

 

 

 

 

 

2,767,512

 

 

 

 

Total liabilities

 

21,538,915

 

 

 

 

 

 

14,732,584

 

 

 

 

Stockholders' equity

 

2,661,478

 

 

 

 

 

 

1,912,820

 

 

 

 

Total liabilities and stockholders' equity

$

24,200,393

 

 

 

 

 

$

16,645,404

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

$

368,823

 

 

 

 

 

$

235,176

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest rate spread

 

 

 

 

2.73

%

 

 

 

 

 

2.46

%

Net interest-earning assets

$

4,682,416

 

 

 

 

 

$

3,128,145

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin (3)

 

 

 

 

3.35

%

 

 

 

 

 

3.08

%

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of interest-earning assets to total interest-bearing liabilities

1.27x

 

 

 

 

 

1.26x

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)  Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses.

(2)  Average outstanding balance are net of the allowance for loan losses, deferred loan fees and expenses, loan premium and discounts and include non-accrual loans.

(3)  Annualized net interest income divided by average interest-earning assets.


 

The following table summarizes the year-to-date net interest margin for the previous three years.

 

 

 

 

 

 

 

Six Months Ended

 

June 30, 2025

 

June 30, 2024

 

June 30, 2023

Interest-Earning Assets:

 

 

 

 

 

Securities

3.75

%

 

2.78

%

 

2.32

%

Net loans

5.98

%

 

5.83

%

 

5.18

%

Total interest-earning assets

5.65

%

 

5.43

%

 

4.68

%

 

 

 

 

 

 

Interest-Bearing Liabilities:

 

 

 

 

 

Deposits

2.63

%

 

2.74

%

 

1.62

%

Borrowings

3.86

%

 

3.75

%

 

3.01

%

Total interest-bearing liabilities

2.92

%

 

2.97

%

 

1.84

%

 

 

 

 

 

 

Interest rate spread

2.73

%

 

2.46

%

 

2.84

%

Net interest margin

3.35

%

 

3.08

%

 

3.29

%

 

 

 

 

 

 

Ratio of interest-earning assets to interest-bearing liabilities

1.27x

 

1.26x

 

1.33x

 

 

 

 

 

 

SOURCE: Provident Financial Services, Inc.
CONTACT: Investor Relations, 1-732-590-9300
Web Site: http://www.Provident.Bank