Provident Financial Services, Inc · NYSE:PFS
Provident Financial Services — Q1 2025 Earnings Presentation
29 slides from Provident Financial Services's earnings presentation, Apr 24, 2025
Slide 1: Q1 2025 Results Presentation
Q1 2025 RESULTS PRESENTATION
Slide 2: Forward Looking Statements
NYSE: PFS 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 amen
Slide 3: Corporate Profile
NYSE: PFS Corporate Profile (At or for the Quarter Ended 03/31/25) 3 1839Bank founded: PFS (NYSE)Stock symbol: 140 serving New Jersey, eastern Pennsylvania, and Orange, Queens, and Nassau Counties, New York Branches: $2.2 Billion as of 4/24/2025Market capitalization: $24.2 Billion in Total Assets $1
Slide 4: Q1 2025 Financial Highlights
NYSE: PFS 4 Q1 2025 Financial Highlights $0.49 Diluted EPS 1.11% Adjusted ROAA 10.13% Adjusted ROAE 16.15% Adjusted ROATE Key Metrics Highlights • Adjusted for a one-time write-down on a foreclosed property in the current quarter, as well as transaction costs related to the merger with Lakeland in p
Slide 5: Stable Core Funding Base
NYSE: PFS Stable Core Funding Base DEPOSIT COMPOSITION 5 Non-interest bearing deposits 20.2% Interest bearing core deposits 41.6% Municipal deposits 21.0% Certificates of deposit 15.0% Wholesale deposits 2.2% March 31, 2025 Q1 Cost of Interest-Bearing Deposits 2.64% Q1 Total Cost of Deposits 2.11% %
Slide 6: Diversified Portfolio of Loans Held for Investment
NYSE: PFS Diversified Portfolio of Loans Held for Investment March 31, 2025 6 Residential Mortgage Loans 11% Commercial Mortgage 39% Multi-family Loans 18% Commercial Construction Loans 4% Commercial Loans 25% Consumer Loans 3% LOAN COMPOSITION Q1 2025 Avg Net Loan Yield 5.95% ($'s in thousands) Rep
Slide 7: CRE Investment Portfolio by Property Type
NYSE: PFS CRE Investment Portfolio by Property type 7 As of 03/31/25 MULTI- FAMILY 32.2% RETAIL 23.3% INDUSTRIAL 18.6% MIXED USE 8.2% OFFICE 7.9% SPECIAL USE 5.0% RESIDENTIAL 3.1% HOTEL 1.2% LAND 0.6% Portfolio Characteristics 4.22% of CRE Investment Portfolio10 Largest CRE Loans 2.39% of Total Loan
Slide 8: Multi-family Composition
NYSE: PFS Multi-family Composition (NY and Rent Stabilized sectors) 8 OTHER NY BOROUGHS 46% OTHER NY 45% MANHATTAN 9% Total NY Multi-family Loans = $473.9 Million Total multi-family loan portfolio: $3.51 Billion • Of the total, 91 Loans on multi-family properties in the five boroughs of NYC, aggrega
Slide 9: CRE Office Composition
NYSE: PFS CRE Office Composition 9 • Medical Office: approx. 36% of total office portfolio. Maturity or Reprice by Year $241.6 M2025 152.2 M2026 163.9 M2027 146.9 M2028 73.7 M2029 85.0 M2030 & BEYOND $863.3MTotal OFFICE - OUT OF MARKET 5% PENNSYLVANIA 9% OTHER NY 2% OTHER NY BOROUGHS 9% MANHATTAN 2%
Slide 10: C&I Loans by NAICS Sector
NYSE: PFS C & I – (Includes owner occupied) Loans by NAICS Sector – March 31, 2025 10 Real Estate and Rental and Leasing 22% Health Care and Social Assistance 20% Construction 6% Manufacturing 9% Finance and Insurance 4% Wholesale Trade 6% Retail Trade 5% 13 Diversified Sectors 28% 1. Other Services
Slide 11: Strong Credit Metrics
Strong Credit Metrics 11 0.98% 1.00% 1.02% 1.04% 1.02%Total allowance to total loans 0.44% 0.36% 0.47% 0.39% 0.54% Total non-performing loans to total loans 0.42% 0.33% 0.41% 0.34% 0.45%Total non-performing assets as a percentage of total assets 0.04% 0.04% 0.14% 0.12% 0.04% Net charge-off ratio Q1
Slide 12: Investment Portfolio
NYSE: PFS Agency Notes - Fixed 0.45% U.S. Treasury Notes 9.97% Corporate Notes 3.00% Agency MBS - Fixed 45.18% Agency MBS - ARMs 0.26% Agency CMO 20.87% Corporate CMO - Fixed 0.02% Non Agency CMBS 1.20% Municipal Bonds 12.77% Student Loan Pools 1.39% Agency CMBS 4.89% Investment Portfolio 12 Total I
Slide 13: Net Interest Margin Analysis
NYSE: PFS Net Interest Margin Analysis 13 2.87% 3.40% 3.69% 3.78% 3.86% 5.51% 6.05% 6.21% 5.99% 5.95% 5.06% 5.67% 5.84% 5.66% 5.63% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Asset Yields Securities Net Loans Total interest-earning assets 2.60% 2.84% 2.96% 2.81% 2.64% 3.60% 3.83% 3.73% 3.64% 3.76% 2.80
Slide 14: Emphasis on Fee Income
NYSE: PFS $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Emphasis on Fee Income Non-Interest Income $ in thousands 14 Q1 25Q4 24Q3 24Q2 24Q1 24 $ 9,655 $ 9,687 $ 9,816 $ 8,699 $ 5,912 Fees 7,328 7,655 7,620 7,769 7,488 Wealth management income 5,651 3,289 3,631 4,488
Slide 15: Focus on Wealth Management Business
NYSE: PFS * Represents interest on lines of credit to Beacon clients, whose investment accounts are pledged as collateral. Advisory 88% Trust & Estate 7% Tax 2% Private Banking 3% Focus on Wealth Management Business 15 $4.0 Billion AUM For 1,049 family relationships 2025 YTD Revenue $ 6,608,925 Advi
Slide 16: Focus on Wealth Management Business
NYSE: PFS AVERAGE CLIENT SIZE $3,800,000 As of March 31, 2025, based on AUM of $4.0B for 1,047 family relationships AVERAGE FEE 73 bps EBITDA & NET INCOME EBITDA (YTD March 31, 2025) $ 3,180,000 Net Income (YTD March 31, 2025) $ 1,227,000 CROSSOVER PROVIDENT/BEACON (HOW MANY PROVIDENT CUSTOMERS ARE
Slide 17: Provident Protection Plus, Inc.
NYSE: PFS • 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 and casualty insurance
Slide 18: Strong Core Performance
NYSE: PFS 1.28% 1.47% 1.48% 1.53% 1.61% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Core PTPP ROAA (Annualized Core PTPP earnings/average assets) CORE PTPP ROAA(1) (1) See Appendix for a reconciliation of GAAP and non-GAAP financial measures. Strong Core Performance 18 14.54% 19.21% 19.77% 20.31% 21.18%
Slide 19: Performance Ratios – Bank Capital
NYSE: PFS Performance Ratios – Bank Capital 19 9. 91 9. 36 9. 70 9. 72 9. 9811 .5 0 10 .8 1 11 .5 1 11 .4 1 11 .7 3 11 .5 0 10 .8 1 11 .5 1 11 .4 1 11 .7 3 12 .3 6 11 .7 2 12 .4 6 12 .3 8 12 .7 3 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Tier 1 leverage capital Common equity Tier 1 risk-based capital
Slide 20: CRE to Total Risk-Based Capital
NYSE: PFS Guideline is 300% of Regulatory Capital CRE to Total Risk-Based Capital 20 472.1% 468.4% 458.0% 460.2% 449.6% 0.00% 50.00% 100.00% 150.00% 200.00% 250.00% 300.00% 350.00% 400.00% 450.00% 500.00% 03/31/24 06/30/24 09/30/24 12/31/2024 3/31/2025
Slide 21: 2025 Guidance
NYSE: PFS 2025 Guidance 21 • 2025: 5% growth (+/- 2% due to trade/geopolitical policy uncertainty) Loans • 2025: 1-3% growthDeposits • 2025: Balances expected to fluctuate based on loan, deposit and securities cash flowsBorrowings • 2025: 3.35% to 3.40% range for the year and upcoming quarterNet Int
Slide 22: Appendix
APPENDIX
Slide 23: CRE Investment Portfolio by Property Type
NYSE: PFS As of 03/31/25 ($ in thousands) CRE Investment Portfolio by Property Type* 23 WARR % OUTSTANDING $ OUTSTANDINGCOUNT PROPERTY TYPE 3.4532.17%3,508,659 1,042Multi-Family 3.3923.26%2,536,966 877Retail 3.4918.65%2,033,819 552Industrial 3.688.15%888,998 695Mixed 3.727.92%863,291 443Office 3.535
Slide 24: C&I Loans by NAICS Sector
NYSE: PFS C & I – (Includes owner occupied)* Loans by NAICS Sector – 03/31/25 24*Excludes Purchase Accounting Adjustments Exposure ($)Loan CountNAIC Industry Code 1,338,868,9641,457Real Estate and Rental and Leasing 1,123,435,966726Health Care and Social Assistance 715,242,2351,241Construction 621,0
Slide 25: Construction Loans by NAICS Sector
NYSE: PFS Construction Loans by NAICS Sector – 03/31/25 25*Excludes Purchase Accounting Adjustments Balance ($)Exposure ($)Loan CountNAIC Industry Code 596,273,902951,744,95279Real Estate and Rental and Leasing 78,980,412133,362,47535Construction 38,951,44654,048,7433Health Care and Social Assistanc
Slide 26: Non-GAAP Financial Measures
NYSE: PFS 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 of operations and financial condition. Presentat
Slide 27: Non-GAAP Financial Measures
NYSE: PFS 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 of operations and financial condition. Presentat
Slide 28: Non-GAAP Financial Measures
NYSE: PFS 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 of operations and financial condition. Presentat
Slide 29: Q1 2025 Results Presentation
Q1 2025 RESULTS PRESENTATION
Provident Financial Services — Q1 2025 Earnings Presentation on 6ix