Provident Financial Services, Inc · NYSE:PFS
Provident Financial Services — Q3 2025 Earnings Presentation
29 slides from Provident Financial Services's earnings presentation, Oct 29, 2025
Slide 1: Q3 2025 Results Presentation
Q3 2025 RESULTS PRESENTATION
Slide 2: Forward Looking Statements
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
Slide 3: Provident Bank; Building a Premier Banking Franchise
Provident Bank; Building a Premier Banking Franchise Company Overview Geographic Overview • Founded in 1839, longest tenured bank headquartered in New Jersey • 140 branches serving New Jersey, eastern Pennsylvania, and Orange, Queens, and Nassau Counties, New York • Full-service commercial & consume
Slide 4: Q3 2025 Financial Highlights
Q3 2025 Financial Highlights Key Metrics Highlights • The Company's annualized returns on average assets, average equity and average tangible equity(1) were 1.16%, 10.39% and 16.01% for the quarter ended September 30, 2025, compared to 1.19%, 10.76% and 16.79% for the quarter ended June 30, 2025. $0
Slide 5: Stable Core Funding Base
Stable Core Funding Base DEPOSIT COMPOSITION September 30, 2025 ($'s in thousands) Wholesale 9/30/2025 6/30/2025 $ Change % Change deposits 4.8% Non-interest bearing deposits $ 3,719,959 $ 3,716,096 $ 3,863 0.1% Non-interest Interest bearing core deposits 8,012,693 7,946,878 65,815 0.8% Certificates
Slide 6: Diversified Portfolio of Loans Held for Investment
Diversified Portfolio of Loans Held for Investment LOAN COMPOSITION September 30, 2025 ($'s in thousands) 9/30/2025 6/30/2025 $ Change % Change Commercial Multi-family Mortgage loans: Construction Loans Loans 4% Commercial $ 7,318,725 $ 7,313,904 $ 4,821 0.1% 18% Commercial Multi-family 3,534,751 3,
Slide 7: CRE Investment Portfolio by Property type
CRE Investment Portfolio by Property type Total CRE Investment Portfolio = $10.98 Billion* RESIDENTIAL HOTEL LAND 2.6% 1.2% 0.7% SPECIAL USE 4.9% Portfolio Characteristics OFFICE 7.2% 10 Largest CRE Loans 4.16% of CRE Investment Portfolio MULTI- MIXED USE FAMILY 10 Largest CRE Loans 2.33% of Total L
Slide 8: Multi-family Composition (NY and Rent Stabilized sectors)
Multi-family Composition (NY and Rent Stabilized sectors) Total NY Multi-family Loans = $501.7 Million Total multi-family loan portfolio: $3.58 Billion • Of the total, 95 Loans on multi-family properties in the five boroughs of NYC, OTHER NY aggregate outstanding $286.7 million, with an average loan
Slide 9: CRE Office Composition
CRE Office Composition Total CRE Office Portfolio = $791.5 million* • Medical Office: approx. 36% of total office portfolio. OFFICE - OUT OF MARKET PENNSYLVANIA 5% 10% OTHER NY Maturity or Reprice by Year 6% 2025 $167.6M 2026 153.5 M OTHER NY 2027 130.5 M BOROUGHS 9% 2028 144.9 M NEW JERSEY 2029 70.
Slide 10: Loans by NAICS Sector – September 30, 2025
Loans by NAICS Sector – September 30, 2025 C & I – (Includes owner occupied) Finance and Insurance Retail Trade 11% 6% Manufacturing 10% 1. Accommodation and Food Services 2. Administrative and Support and Waste Management and Remediation Services 13 Diversified Sectors 3. Agriculture, Forestry, Fis
Slide 11: Strong Credit Metrics
Strong Credit Metrics Q3 24 Q4 24 Q1 24 Q2 25 Q3 25 Total allowance to total loans 1.02% 1.04% 1.02% 0.98% 0.97% Total non-performing loans to total loans held for investment 0.53% 0.56% 0.52% 0.47% 0.37% 0.41% 0.45% 0.44% 0.41% Total non-performing assets as a 0.34% percentage of total assets 0.14%
Slide 12: Investment Portfolio
Investment Portfolio Total Investment Portfolio = $3.43 Billion Agency CMBS Student Loan Pools Agency Notes - Fixed 4.02% 0.13% 1.28% U.S. Treasury Notes As of September 30, 2025, the portfolio had a Municipal Bonds 11.36% 9.00% modified duration of 4.8 years and weighted Non Agency CMBS Corporate
Slide 13: Net Interest Margin Analysis
Net Interest Margin Analysis Interest-Bearing Liabilities Asset Yields Securities Net Loans Total interest-earning assets Total Deposits Total Borrowings Total Interest-Bearing Liabilities 3.94% 3.96% 6.21% 6.09% 3.73% 3.76% 5.99% 5.95% 6.01% 3.64% 3.19% 5.84% 5.68% 5.76% 3.03% 2.96% 5.66% 5.63% 2.9
Slide 14: Emphasis on Fee Income
Emphasis on Fee Income Non-Interest Income $ in thousands $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 Q3 Q3 24 24 Q4Q4 24 24 Q1 25 Q1 25 Q2Q2 25 25 Q3 Q3 25 25 Fees $ 9,816 $ 9,687 $ 9,655 $ 10,736 $ 11,336 Wealth management income 7,620 7,655 7,328 6,948 7,349 Insurance agency income 3,631 3,
Slide 15: Focus on Wealth Management Business
Focus on Wealth Management Business 2025 YTD Revenue Advisory $ 19,351,757 Trust & Estate Trust & Estate $ 1,726,805 8% Tax $ 545,845 Tax Interest Income $ 572,667 * 2% Total $ 22,197,074 Advisory Private 87% Banking 3% $4.3 Billion AUM For 1,050 family relationships NYSE: PFS * Represents interest
Slide 16: Focus on Wealth Management Business
Focus on Wealth Management Business AVERAGE EBITDA & NET INCOME CLIENT SIZE EBITDA (YTD September 30, 2025) $ 9,438,000 Net Income (YTD September 30, 2025) $ 6,601,000 CROSSOVER PROVIDENT/BEACON $4,000,000 (HOW MANY PROVIDENT CUSTOMERS ARE BEACON CLIENTS) As of September 30, 2025, based on AUM of $4
Slide 17: Provident Protection Plus, Inc.
Provident Protection Plus, Inc. Insurance Services Net Income Before Tax • Provident Protection Plus, Inc. provides ($ in thousands) insurance agency services including business, personal and employee benefits insurance products. $2,878 • The insurance agency’s primary source of revenue is commissio
Slide 18: Strong Core Performance
Strong Core Performance Core PTPP ROAA Core PTPP ROAE Core PTPP ROATE (Annualized Core PTPP earnings/average (Annualized Core net income/average (Annualized Core net income/average tangible assets) stockholders' equity) stockholders' equity) 15.74% 22.21% 1.76% 14.88% 14.63% 21.18% 21.26% 1.64% 1.61
Slide 19: Performance Ratios – Bank Capital
Performance Ratios – Bank Capital Tier 1 leverage capital Common equity Tier 1 risk-based capital Tier 1 risk-based capital Total risk-based capital 12.86 12.71 12.69 12.46 12.40 11.90 11.90 11.73 11.73 11.71 11.71 11.51 11.51 11.42 11.42 10.27 10.12 9.98 9.72 9.70 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3
Slide 20: CRE to Total Risk-Based Capital
CRE to Total Risk-Based Capital Guideline is 300% of Regulatory Capital 500.00% 458.0% 460.2% 449.6% 443.7% 433.4% 450.00% 400.00% 350.00% 300.00% 250.00% 200.00% 150.00% 100.00% 50.00% 0.00% 09/30/24 12/31/2024 3/31/2025 6/30/2025 9/30/2025 NYSE: PFS 20
Slide 21: 2025 Guidance
2025 Guidance • Remainder of 2025: 5% annualized growth (+/- 2% due to trade/geopolitical policy Loans uncertainty) Deposits • Remainder of 2025: 1-3% annualized growth • Remainder of 2025: Balances expected to fluctuate based on loan, deposit and securities Borrowings cash flows Net Interest Margin
Slide 22: Appendix
APPENDIX
Slide 23: CRE Investment Portfolio by Property Type
CRE Investment Portfolio by Property Type* As of 09/30/25 ($ in thousands) $ % PROPERTY TYPE COUNT OUTSTANDING OUTSTANDING WARR MULTI 1,062 3,579,927 32.59% 3.46 RET 899 2,600,884 23.68% 3.44 INDUS 568 2,076,376 18.90% 3.49 MIXED 705 910,664 8.29% 3.66 OFF 415 791,463 7.21% 3.76 SUP 207 533,050 4.85
Slide 24: Loans by NAICS Sector – C & I (Includes owner occupied)
Loans by NAICS Sector – C & I – (Includes owner occupied)* As of 09/30/25 ($ in thousands) NAIC Industry Code Loan Count Exposure ($) 62: Health Care and Social Assistance 709 1,081,725 53: Real Estate and Rental and Leasing 1,272 585,836 81: Other Services (except Public Administration) 789 418,569
Slide 25: Loans by NAICS Sector – Construction
Loans by NAICS Sector – Construction As of 09/30/25 ($ in thousands) NAICS Industry Code Loan Count Exposure ($) Balance ($) Real Estate and Rental and Leasing 75 929,434 572,875 Construction 21 70,993 48,775 Health Care and Social Assistance 3 54,066 44,747 Accommodation and Food Services 1 20,000
Slide 26: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures ($ in thousands, except per share data) Annualized Adjusted Return on Average Assets, Equity and Tangible Equity Three Months Ended September 30, June 30, September 30, 2025 2025 2024 Net Income $ 71,720 $ 71,981 $ 46,405 Write-down on ORE Proper
Slide 27: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Core PTPP earnings: Net Income $ 46,405 $ 48,524 $ 64,028 $ 71,981 $ 71,720 Add: provision for credit losses 9,299 8,880 638 (2,888) 7,044 Add: income tax expense 18,850 14,185 27,825 30,462 29,895 Add: mer
Slide 28: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures ($ in thousands, except per share data) Annualized Adjusted Non-Interest Expense to Average Assets Three Months Ended September 30, 2025 Reported non-interest expense $ 113,092 Adjustments to non-interest expense: Write-down on ORE property - Mer
Slide 29: Q3 2025 Results Presentation
Q3 2025 RESULTS PRESENTATION
Provident Financial Services — Q3 2025 Earnings Presentation on 6ix