Provident Financial Services, Inc · NYSE:PFS
Provident Financial Services — Q2 2026 Earnings Presentation
29 slides from Provident Financial Services's earnings presentation, Jul 30, 2026
Slide 1: Q2 2026 Results Presentation
Q2 2026 RESULTS PRESENTATION
Slide 2: 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
Slide 3: Provident Bank; Building a Premier Banking Franchise
Provident Bank; Building a Premier Banking Franchise Total Assets $25.7B Total Loans $20.0B Total Deposits $19.5B PPNR ROAA 1.87% ROATCE 16.22% Wealth AUM $4.5B Q2 Insurance Rev $5.7MM Company Overview Geographic Overview • Founded in 1839, longest tenured bank headquartered in New Jersey • 135 bran
Slide 4: Q2 2026 Core Financial Highlights
Q2 2026 Core Financial Highlights $0.61 Core Diluted EPS 1.27% Core ROAA 1.87% Core PPNR ROAA 16.22% Core ROATCE (1) See Appendix for a reconciliation of GAAP and non-GAAP financial measures. 4 Key Metrics Highlights Expanding profitability metrics year-over-year, achieving a 1.27% core ROAA and 16.
Slide 5: Expanding Core Net Interest Margin
Expanding Core Net Interest Margin • Net interest income growth of 8% year-over-year benefited from higher net interest margin and earning assets. • Favorable repricing of maturing loans contributed to core net interest margin expansion in Q2. • We continue to manage deposit costs as we grow. 5 $187
Slide 6: Sustained, Diverse Loan Growth
Sustained, Diverse Loan Growth 6 • The commercial lending team originated $696.9 million of new production in the second quarter of 2026, resulting in 9.9% net commercial annualized loan growth for the quarter. Pay-offs for the second quarter were $342.9 million, which compared to $221.2 million for
Slide 7: Granular and Relationship Focused Funding Model
Granular and Relationship Focused Funding Model • The average cost of deposits, including non-interest-bearing deposits, decreased 2 basis points to 1.92% for the quarter ended June 30, 2026 compared to March 31, 2026. • Wholesale deposits increased $618 million, while municipal deposits decreased $
Slide 8: Emphasis on Growing Fee Income
Emphasis on Growing Fee Income 8 • Beacon Trust remains highly focused on growth and retention. • Insurance agency income grew $1.7 million year over year, due to increased contingency commission income, strong retention and new business activity. • SBA loan sales increased compared to the prior qua
Slide 9: Focus on Sustained Positive Operating Leverage
Focus on Sustained Positive Operating Leverage 9 • Compensation and benefits expense increased $1.1 million to $67.3 million for the three months ended June 30, 2026, compared to $66.2 million for the trailing quarter, primarily attributable to: • an increase in severance expense • Partially offset
Slide 10: Maintaining Strong Balance Sheet
Maintaining Strong Balance Sheet • Stable insured deposit base, brokered deposits only 6.5% of total deposits as of June 30, 2026 • Total insured and collateralized deposits as of 06/30/26, totaled $13.7B or 70.1% of our total deposit portfolio • Strong regulatory capital ratios at bank and holding
Slide 11: Managing CRE Concentration Lower
Managing CRE Concentration Lower 11 ($ in thousands) *Excludes purchase accounting amounts 443.7% 433.4% 432.2% 428.6% 427.8% 408.0% 403.0% 399.5% 398.5% 399.7% $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 2Q25 3Q25 4Q25 1Q26 2Q26 Managing CRE Concentration Land CRE Multifamily Constructio
Slide 12: Consistently Strong Credit Metrics
Consistently Strong Credit Metrics 0.98% 0.97% 0.95% 0.90% 0.92%Total allowance to total loans 0.56% 0.52% 0.40% 0.73% 0.68% Total non-performing loans to total loans 0.44% 0.41% 0.32% 0.58% 0.54% Total non-performing assets as a percentage of total assets 2Q25 1Q26 2Q263Q25 4Q25 0.03% 0.11% 0.09% 0
Slide 13: Favorable Core Performance Trends
Favorable Core Performance Trends (1) See Appendix for a reconciliation of GAAP and non-GAAP financial measures. 13 1.64% 1.76% 1.78% 1.75% 1.87% 1.50% 1.55% 1.60% 1.65% 1.70% 1.75% 1.80% 1.85% 1.90% 2Q25 3Q25 4Q25 1Q26 2Q26 Core PPNR ROAA (1) (Annualized Core net income PPNR /average assets) 1.19%
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 Net Interest Margin • 2026: 3.45-3.50% reported and 1-2 bps of core margin expansion per quarter
Slide 15: Appendix
APPENDIX = Provident Financial Services, Inc.
Slide 16: Net Interest Margin Analysis
Net Interest Margin Analysis 3.73% 3.80% 3.89% 3.87% 3.80% 3.99% 5.95% 6.01% 6.09% 5.98% 5.85% 5.90% 5.63% 5.68% 5.76% 5.66% 5.53% 5.61% 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 Asset Yields Securities Net Loans Total interest-earning assets 2.64% 2.62% 2.67% 2.60% 2.39% 2.37% 3.76% 3.94% 3.96% 3.94% 3.90% 3.9
Slide 17: Focus on Growing Wealth Management Business
Focus on Growing Wealth Management Business Advisory 78% Trust & Estate 9% Tax 10% Private Banking 3% $4.5 Billion AUM For 1,045 family relationships * Represents interest on lines of credit to Beacon clients, whose investment accounts are pledged as collateral. 17 145 Provident Bank households are
Slide 18: Provident Protection Plus, Inc.
Provident Protection Plus, Inc. • Provident Protection Plus, Inc. provides insurance agency services including business, personal and employee benefits insurance products. • The insurance agency’s primary source of revenue is commission income earned from the sale of business and personal property a
Slide 19: CRE Type Composition
CRE Type Composition 19 Portfolio Characteristics 10 Largest CRE Loans 4.05% of CRE Investment Portfolio 10 Largest CRE Loans 2.27% of Total Loan Portfolio Average Loan Size Outstanding $2.48 Million Total CRE Investment Portfolio = $11.4 Billion* *Excludes Purchase Accounting Adjustments and Constr
Slide 20: CRE Office Composition
CRE Office Composition • Medical Office: approx. 35% of total office portfolio. Maturity or Reprice by Year 2026 $218.8 2027 $136.9 2028 $131.6 2029 $70.1 2030 $75.7 2031 AND BEYOND $119.2 Total $752.4M No significant central business district exposure Total CRE Office Portfolio = $752.4 million* *E
Slide 21: CRE Investment Portfolio by Property Type
CRE Investment Portfolio by Property Type* As of 6/30/26 ($ in thousands) *Excludes Purchase Accounting and Construction Loans 21 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 7.9
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 *Excludes Purchase Accounting Loans 22 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.
Slide 23: Investment Portfolio
Investment Portfolio 23 Total Investment Portfolio = $3.55 Billion • As of June 30, 2026, the portfolio had a modified duration of 4.1 years and weighted average life of 5.0 years • As of June 30, 2026, the allowance for credit losses on held to maturity securities totaled $22,000 Agency Notes 0% U.
Slide 24: Commitment You Can Count On
Commitment You Can Count On. Guiding Principles Act with Integrity Be Accountable Promote Teamwork Pursue Excellence Build for the Future Our Pillars. Employee Experience Customer Experience Guiding Principles Our Mission. Commit ever day to deepen our emotional connections with our employees, custo
Slide 25: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures 25 ($ in thousands, except per share data) Note: The Company has presented the following non-GAAP (Generally Accepted Accounting Principles) financial measures because it believes that these measures provide useful and comparative information to
Slide 26: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures 26 ($ in thousands, except per share data) Note: The Company has presented the following non-GAAP (Generally Accepted Accounting Principles) financial measures because it believes that these measures provide useful and comparative information to
Slide 27: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures 27 Note: The Company has presented the following non-GAAP (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 o
Slide 28: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures 28 Note: The Company has presented the following non-GAAP (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 o
Slide 29: Q2 2026 Results Presentation
Q2 2026 RESULTS PRESENTATION
Provident Financial Services — Q2 2026 Earnings Presentation on 6ix