Provident Financial Services, Inc · NYSE:PFS

Provident Financial Services — Q2 2026 Earnings Presentation

29 slides from Provident Financial Services's earnings presentation, Jul 29, 2026

  1. Slide 1: Q2 2026 Results Presentation

    Q2 2026 RESULTS PRESENTATION

  2. 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

  3. 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 • 135 branches serving New Jersey, eastern Pennsylvania, and Orange, Queens, and Nassau Counties, New York • Full-service commercial & consume

  4. Slide 4: Q2 2026 Core Financial Highlights

    Q2 2026 Core Financial Highlights Key Metrics Highlights Expanding profitability metrics year-over-year, achieving a 1.27% core ROAA and 16.22% core $0.61 ROATCE. Core Diluted EPS PPNR growth of $18.2 million, or 18.3% compared to the prior year quarter, resulting in a 1.87% core PPNR ROAA which exp

  5. Slide 5: Expanding Core Net Interest Margin

    Expanding Core Net Interest Margin • Net interest income growth of 8% year-over-year benefited Net Interest Income ($mm) and Core Margin from higher net interest margin and earning assets. 3.48% 3.60% $202 3.36% 3.43% 3.44% 3.40% • Favorable repricing of maturing loans contributed to core 3.40% $203

  6. Slide 6: Sustained, Diverse Loan Growth

    Sustained, Diverse Loan Growth EOP HFI Loans– YoY QoQ $ Annualized % ($ in millions) 2Q26 1Q26 Pipeline vs Originations Growth Growth ($ in millions) C&I loans $ 5,251 $ 4,967 $ 284 22.93% 3,500 CRE loans 7,502 7,424 78 4.21% 3,173 3,115 Construction loans 639 641 (2) -1.25% 3,000 2,870 2,745 Multi-

  7. Slide 7: Granular and Relationship Focused Funding Model

    Granular and Relationship Focused Funding Model EOP Deposits by Product– YoY QoQ $ Annualized ($ in millions) 2Q26 1Q26 Growth % Growth Non-interest bearing $ 3,777 $ 3,695 $ 82 8.89% Average Total Client Deposit Mix Interest bearing core 8,146 8,188 (42) -2.04% 100% 3% 4% 6% 4% 5% Municipal 3,566 3

  8. Slide 8: Emphasis on Growing Fee Income

    Emphasis on Growing Fee Income QTD YTD QoQ $ YoY $ ($ in thousands) Jun-26 Mar-26 Jun-25 Jun-26 Jun-25 Growth Growth Fees $ 12,259 $ 10,464 $ 1,795 $ 10,736 $ 22,722 $ 20,391 $ 2,331 Wealth management 7,517 7,402 115 6,948 14,920 14,275 645 Insurance 5,446 6,850 (1,404) 4,942 12,296 10,593 1,703 Ban

  9. Slide 9: Focus on Sustained Positive Operating Leverage

    Focus on Sustained Positive Operating Leverage Non-interest expense ($ in thousands) 2Q25 3Q25 4Q25 1Q26 2Q26 Compensation and employee benefits $ 63,249 $ 63,202 $ 64,316 $ 66,196 $ 67,289 Net occupancy expense 13,011 12,773 13,078 14,985 12,464 Data processing expense 9,599 9,102 9,110 9,646 9,388

  10. Slide 10: Maintaining Strong Balance Sheet

    Maintaining Strong Balance Sheet • Stable insured deposit base, brokered deposits only 6.5% of total deposits as • Strong regulatory capital ratios at bank and holding company, of June 30, 2026 comfortably above well-capitalized ratios • Total insured and collateralized deposits as of 06/30/26, tota

  11. Slide 11: Managing CRE Concentration Lower

    Managing CRE Concentration Lower ($ in thousands) $14,000 443.7% $12,000 433.4% 432.2% Land 428.6% 427.8% CRE $10,000 Multifamily Construction & Land $8,000 Development 408.0% Construction 1-4 403.0% CRE Concentration $6,000 399.5% 398.5% 399.7% Ratio $4,000 $2,000 $- 2Q25 3Q25 4Q25 1Q26 2Q26 *Exclu

  12. Slide 12: Consistently Strong Credit Metrics

    Consistently Strong Credit Metrics 2Q25 3Q25 4Q25 1Q26 2Q26 0.98% 0.97% 0.95% Total allowance to total loans 0.90% 0.92% Total non-performing loans to 0.73% 0.68% total loans 0.56% 0.52% 0.40% Total non-performing assets as a 0.58% 0.54% percentage of total assets 0.44% 0.41% 0.32% 0.11% 0.09% Net c

  13. Slide 13: Favorable Core Performance Trends

    Favorable Core Performance Trends Core ROAA (1) Core PPNR ROAA (1) Core ROATCE (1) (Annualized Core net income (Annualized Core net income (Annualized Core net /average assets) PPNR /average assets) income /average tangible 1.40% 1.90% 1.87% stockholders' equity) 1.34% 1.85% 1.35% 18.00% 1.78% 17.58

  14. Slide 14: 2026 Guidance

    2026 Guidance Loans • 2026: 5-6% annualized loan growth Deposits • 2026: 5-6% annualized deposit growth Borrowings • 2026: Balances expected to fluctuate based on loan, deposit and securities cash flows • 2026: 3.45-3.50% reported and 1-2 bps of core margin expansion per quarter in second half Net I

  15. Slide 15: Appendix

    =Provident Financial Services, Inc. APPENDIX 15

  16. Slide 16: Net Interest Margin Analysis

    Net Interest Margin Analysis Interest-Bearing Liabilities Asset Yields Total Deposits Total Borrowings Total Interest-Bearing Liabilities Securities Net Loans Total interest-earning assets 3.94% 3.96% 3.94% 3.91% 3.90% 3.76% 5.95% 6.01% 6.09% 5.98% 5.90% 5.85% 5.63% 5.68% 5.76% 5.66% 5.61% 2.90% 2.9

  17. Slide 17: Focus on Growing Wealth Management Business

    Focus on Growing Wealth Management Business AVERAGE CLIENT SIZE 145 Provident Bank households are also Beacon clients Trust & Estate 9% $4,000,000 Tax 10% 2026 Q1 Total Revenue Private Advisory $ 11,985,000 Trust & Estate $ 1,388,000 Banking Tax $ 1,554,000 Advisory 3% Interest Income * $ 453,000 78

  18. Slide 18: Provident Protection Plus, Inc.

    Provident Protection Plus, Inc. Insurance Services Net Income Before Tax ($ in thousands) • Provident Protection Plus, Inc. provides insurance agency services including business, personal and employee $3,302 benefits insurance products. $2,878 • The insurance agency’s primary source of revenue is co

  19. Slide 19: CRE Type Composition

    CRE Type Composition As of 6/30/2026 HOTEL RESIDENTIAL 1.14% LAND Portfolio Characteristics SPECIAL USE 2.54% 0.78% 4.50% 10 Largest CRE Loans 4.05% of CRE Investment Portfolio OFFICE 10 Largest CRE Loans 2.27% of Total Loan Portfolio 6.59% MIXED USE MULTI- Average Loan Size Outstanding $2.48 Millio

  20. Slide 20: CRE Office Composition

    CRE Office Composition Total CRE Office Portfolio = $752.4 million* • Medical Office: approx. 35% of total office portfolio. OUT OF MARKET 6% Maturity or Reprice by Year PA OTHER NY 10% 2026 $218.8 BOROUGHS 9% 2027 $136.9 OTHER NY 3% 2028 $131.6 MANHATTAN NEW JERSEY 2029 $70.1 2% 70% 2030 $75.7 2031

  21. Slide 21: CRE Investment Portfolio by Property Type

    CRE Investment Portfolio by Property Type* As of 6/30/26 ($ in thousands) $ % PROPERTY TYPE COUNT OUTSTANDING OUTSTANDING WARR MULTI 1,068 3,842,980 33.66% 3.50 RET 885 2,697,026 23.62% 3.48 INDUS 580 2,190,000 19.18% 3.53 MIXED 694 911,405 7.98% 3.58 OFF 401 752,373 6.59% 3.68 SUP 203 513,330 4.50%

  22. Slide 22: Multi-family Composition (NY and Rent Stabilized sectors)

    Multi-family Composition (NY and Rent Stabilized sectors) Total NY Multi-family Loans = $654.8 Million Total multi-family loan portfolio: $3.84 Billion • Of the total, 106 Loans on multi-family properties in the five boroughs of NYC, aggregate outstanding $386.3 million, with an average loan size of

  23. Slide 23: Investment Portfolio

    Investment Portfolio Total Investment Portfolio = $3.55 Billion Student Loan Pools Municipal Bonds 1% • As of June 30, 2026, the 11% Agency CMBS Agency Notes portfolio had a modified 4% 0% U.S. Treasury Notes duration of 4.1 years and 5% Non Agency CMBS 4% Corporate Notes weighted average life of 3%

  24. Slide 24: Commitment You Can Count On.

    Commitment You Can Count On. Our Vision. Guiding Principles A consistently high performing bank, committed to creating advocates for life. Act with Integrity Be Accountable Our Mission. Commit ever day to deepen our emotional connections with our employees, customers, and the communities we serve by

  25. Slide 25: Reconciliation of GAAP to Non-GAAP Financial Measures

    Reconciliation of GAAP to Non-GAAP Financial Measures ($ in thousands, except per share data) Reconciliation of GAAP to Non-GAAP Financial Measures ($ in thousands, except per share data) Annualized Core Return on Average Assets, Equity and Tangible Equity Three Months Ended 2Q26 1Q26 2Q25 Net Incom

  26. Slide 26: Reconciliation of GAAP to Non-GAAP Financial Measures

    Reconciliation of GAAP to Non-GAAP Financial Measures ($ in thousands, Reconciliation of GAAP to Non-GAAP Financial Measures except per share data) Core Pre-provision-net-revenue: 2Q25 3Q25 4Q25 1Q26 2Q26 Net Income $ 71,981 $ 71,720 $ 83,431 $ 79,417 $ 78,147 Add: provision for credit losses (2,888

  27. Slide 27: Reconciliation of GAAP to Non-GAAP Financial Measures

    Reconciliation of GAAP to Non-GAAP Financial Measures ($ in thousands, except per share data) Annualized Core Non-Interest Expense to Average Assets Three Months Ended 2Q26 Reported non-interest expense $ 119,258 Adjustments to non-interest expense: Executive severance expense 864 Core system conver

  28. 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 Q2 2026 Q1 2026 Q4 2025 Q3 2025 Q2 2025 Reported non-interest expense $ 119,258 Adjustments to non-interest expense: Executive s

  29. Slide 29: Q2 2026 Results Presentation

    Q2 2026 RESULTS PRESENTATION

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