Provident Financial Services, Inc (PFS) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you Adriano, and welcome everyone to the Provident Financial Services fourth quarter earnings call. The Provident team delivered another strong quarter driven by record revenues, favorable credit metrics, and expanding core profitability. Throughout 2025, we built organic growth momentum on both sides of the balance sheet, which combined with positive operating leverage resulted in notable improvement in our financial performance. Accordingly, in the fourth quarter, we reported net earnings of 83 million, or 64 cents per share. Our annualized return on average assets was 1.34%, and our adjusted return on average tangible common equity was 17.6%. Pre-provision net revenue was a record 111 million, or an ROA of 1.78%. Since closing the Lakeland transaction, we have grown poor pre-provisioned net revenue every quarter. Turning to our balance sheet, our commercial loan team generated total new loan production of $3.2 billion in 2025. Elevated loan payoffs of $1.3 billion, which were primarily in our CREE portfolio, partially offset our strong production, resulting in net commercial loan growth of 5.5% for the year. We remain focused on generating high quality diversified loan growth. At year end, our pipeline remains solid at 2.7 billion with a weighted average rate of 6.22%. Our loan pipeline has consistently been north of 2.5 billion for the last four quarters. And more importantly, our originations have grown every quarter in 2025, peaking at over 1 billion in the fourth quarter. On the funding side, Core deposits grew $260 million, or 6.6% annualized, compared to the link quarter. Favorable trends in our commercial and consumer segments contributed to growth in our average non-interest-bearing deposits of 2% annualized. The deposit market remains competitive, b...