1. Home
  2. News
  3. Provident Financial Services, Inc
  4. Provident Financial Services, Inc. Reports Third Quarter Earnings
Provident Financial Services, Inc news

Investor announcements, newest first.

Close
Company news
Provident Financial Services, Inc
Oct 29, 2025 at 9:20 PM UTC
Original
ELI5

Provident Financial Services, Inc. Reports Third Quarter Earnings

ISELIN, N.J., Oct. 29, 2025 (GLOBE NEWSWIRE) -- Provident Financial Services, Inc. (NYSE:PFS) (the “Company”) reported net income of $71.7 million, or $0.55 per basic and diluted share for the three months ended September 30, 2025, compared to $72.0 million, or $0.55 per basic and diluted share, for the three months ended June 30, 2025 and $46.4 million, or $0.36 per basic and diluted share, for the three months ended September 30, 2024. For the nine months ended September 30, 2025, net income totaled $207.7 million, or $1.59 per basic and diluted share, compared to $67.0 million, or $0.65 per basic and diluted share, for the nine months ended September 30, 2024. While there were no transaction costs related to our merger with Lakeland Bancorp, Inc. (“Lakeland”) during 2025, for the three and nine months ended September 30, 2024, these costs totaled $15.6 million and $96.8 million, respectively, including an initial Current Expected Credit Loss ("CECL") provision for credit losses on loans of $60.1 million recorded as part of the Lakeland merger.

Anthony J. Labozzetta, President and Chief Executive Officer commented, “Provident continued to make progress on several strategic initiatives and delivered another impressive performance this quarter. We again achieved record revenues and pre-tax, pre-provision earnings by responsibly growing earning assets and deposits, while further improving operational efficiency and maintaining strong asset quality. We continued to invest in accomplished talent and technology and look forward to the sustained growth of our business and profitability.”

Performance Highlights for the Third Quarter of 2025

  • 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. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 12 of the earnings release.

  • The Company's annualized adjusted pre-tax, pre-provision returns on average assets, average equity and average tangible equity(2) were 1.76%, 15.74% and 22.20% for the quarter ended September 30, 2025, compared to 1.64%, 14.88% and 21.26% for the quarter ended June 30, 2025. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 12 of the earnings release.

  • The Company reported record revenue for a second consecutive quarter of $221.8 million for the three months ended September 30, 2025, comprised of record net interest income of $194.3 million and non-interest income of $27.4 million, compared to revenue of $214.2 million for the prior quarter.

  • Average interest-earning assets increased $162.8 million, or an annualized 2.9%, for the quarter ended September 30, 2025, versus the trailing quarter.

  • The Company’s commercial and industrial ("C&I") loan portfolio, excluding mortgage warehouse lines, increased $149.0 million, or 12.61% annualized, to $4.84 billion as of September 30, 2025, from $4.69 billion as of June 30, 2025. Additionally, the Company's total commercial loan portfolio, including mortgage warehouse lines, commercial mortgage, multi-family and construction loans, increased $191.2 million, or 4.59% annualized, to $16.70 billion as of September 30, 2025, from $16.51 billion as of June 30, 2025.

  • The Company's total deposits increased $387.7 million, or 8.22% annualized, to $19.10 billion as of September 30, 2025, from $18.71 billion as of June 30, 2025, while total core deposits, which excludes certificates of deposits, increased $290.8 million, or 7.47% annualized, to $15.73 billion as of September 30, 2025, from $15.44 billion as of June 30, 2025.

  • As of September 30, 2025, the Company's loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $2.87 billion, with a weighted average interest rate of 6.15%, compared to $2.59 billion, with a weighted average interest rate of 6.30%, as of June 30, 2025.

  • The net interest margin increased seven basis points to 3.43% for the quarter ended September 30, 2025, from 3.36% for the trailing quarter, while the core net interest margin, which excludes the impact of purchase accounting accretion and amortization, increased one basis point to 2.94%. The weighted average yield on interest-earning assets for the quarter ended September 30, 2025 increased eight basis points to 5.76%, compared to the trailing quarter, while the weighted average cost of interest-bearing liabilities for the quarter ended September 30, 2025 increased two basis points to 2.96%, compared to the trailing quarter.

  • The Company recorded a $7.0 million provision for credit losses for the quarter ended September 30, 2025, which included a $4.5 million provision on loans and a $2.5 million provision on commitments, compared to a $2.9 million benefit to the provision for credit losses for the trailing quarter. Non-performing assets to total assets improved to 0.41% as of September 30, 2025, and annualized net charge-offs were 0.11% of loans for the quarter. The allowance for credit losses as a percentage of loans decreased to 0.97% as of September 30, 2025, from 0.98% as of June 30, 2025.

  • Tangible book value per share(3) increased 3.6% to $15.13 and our tangible common equity ratio increased 19 basis points to 8.22% as of September 30, 2025. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 13 of the earnings release.

  • As of September 30, 2025, multi-family CRE loans secured by New York City properties totaled $286.7 million. This portfolio constitutes only 1.5% of total loans and has an average loan size of $3.0 million. Loans that are collateralized by rent stabilized apartments comprise less than 1.00% of the total loan portfolio and are all performing.

  • As of September 30, 2025, the Company had no financial risk or investment tied to non-depository financial institutions, with the exception of our mortgage warehouse lines of credit portfolio, which totaled $292.1 million.

Results of Operations

Three months ended September 30, 2025 compared to the three months ended June 30, 2025

For the three months ended September 30, 2025, the Company reported net income of $71.7 million, or $0.55 per basic and diluted share, compared to net income of $72.0 million, or $0.55 per basic and diluted share, for the three months ended June 30, 2025.

Net Interest Income and Net Interest Margin

Net interest income increased $7.2 million to $194.3 million for the three months ended September 30, 2025, from $187.1 million for the trailing quarter. The increase in net interest income was primarily due to originations of new loans and securities at current market rates, partially offset by a decrease in average lower-costing deposits.

The Company’s net interest margin increased seven basis points to 3.43% for the quarter ended September 30, 2025, from 3.36% for the trailing quarter. The weighted average yield on interest-earning assets for the quarter ended September 30, 2025 increased eight basis points to 5.76%, compared to the trailing quarter. The weighted average cost of interest-bearing liabilities for the quarter ended September 30, 2025 increased two basis points to 2.96% from the trailing quarter. The average cost of interest-bearing deposits for the quarter ended September 30, 2025 increased five basis points to 2.67% from the trailing quarter. Average non-interest bearing deposits increased $25.5 million to $3.73 billion for the quarter ended September 30, 2025, compared to $3.70 billion for the quarter ended June 30, 2025. The average cost of total deposits, including non-interest-bearing deposits, was 2.14% for the quarter ended September 30, 2025, compared to 2.10% for the trailing quarter. The average cost of borrowed funds for the quarter ended September 30, 2025 was 3.96%, compared to 3.94% for the quarter ended June 30, 2025.

Provision for Credit Losses on Loans

For the quarter ended September 30, 2025, the Company recorded a $4.5 million provision for credit losses on loans, compared with a benefit to the provision for credit losses on loans of $2.7 million for the quarter ended June 30, 2025. The provision for credit losses on loans in the quarter was primarily attributable to overall growth in the loan portfolio, combined with a modestly weakened CECL economic forecast compared to the prior quarter. For the three months ended September 30, 2025, net charge-offs totaled $5.4 million, or an annualized 11 basis points of average loans, compared with net charge-offs of $1.2 million, or an annualized 3 basis points of average loans for the trailing quarter. Charge-offs in the current quarter were related to the resolution of several non-accrual loans that were largely specifically reserved for in prior periods. Non-accrual loans decreased $6.8 million this quarter to $100.4 million, or 0.52% of total loans.

Non-Interest Income and Expense

For the three months ended September 30, 2025, non-interest income totaled $27.4 million, an increase of $344,000, compared to the trailing quarter. Fee income increased $600,000 to $11.3 million for the three months ended September 30, 2025, compared to the trailing quarter, primarily due to an increase in loan prepayment fee income, partially offset by a decrease in ATM fee income. Wealth management income increased $401,000 to $7.3 million for the three months ended September 30, 2025, compared to the trailing quarter, mainly due to an increase in the average market value of assets under management during the period. Additionally, other non-interest income increased $289,000 to $2.2 million for the three months ended September 30, 2025, primarily related to increases in swap-related fee income. Partially offsetting these increases in non-interest income, insurance agency income decreased $1.1 million to $3.9 million for the three months ended September 30, 2025, compared to the trailing quarter, mainly due to normal seasonality of business activity in the current quarter.

Non-interest expense totaled $113.1 million for the three months ended September 30, 2025, a decrease of $1.5 million, compared to $114.6 million for the trailing quarter. Other operating expenses decreased $1.0 million to $13.5 million for the three months ended September 30, 2025, compared to $14.5 million for the trailing quarter, driven by decreases in legal, professional and other miscellaneous expenses. Data processing expense decreased $497,000 to $9.1 million, compared to $9.6 million for the trailing quarter, primarily due to decreased software maintenance expense, while net occupancy expense decreased $238,000 to $12.8 million for the three months ended September 30, 2025, compared to $13.0 million for the trailing quarter, primarily due to decreases in maintenance and depreciation expense. Partially offsetting these decreases in non-interest expense, advertising expense increased $211,000 to $1.6 million for the three months ended September 30, 2025, compared to $1.4 million for the trailing quarter as a result of additional marketing campaigns in the current quarter.

The Company’s annualized adjusted non-interest expense as a percentage of average assets(5) improved to 1.83% for the quarter ended September 30, 2025, compared to 1.89% for the trailing quarter. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)(6) improved to 51.01% for the three months ended September 30, 2025, compared to 53.52% for the trailing quarter.

Income Tax Expense

For the three months ended September 30, 2025, the Company's income tax expense was $29.9 million with an effective tax rate of 29.4%, compared to income tax expense of $30.5 million with an effective tax rate of 29.7%, for the trailing quarter.

Three months ended September 30, 2025 compared to the three months ended September 30, 2024

For the three months ended September 30, 2025, the Company reported net income of $71.7 million, or $0.55 per basic and diluted share, compared to net income of $46.4 million, or $0.36 per basic and diluted share, for the three months ended September 30, 2024. While there were no transaction costs related to our merger with Lakeland during 2025, these costs totaled $15.6 million for the three months ended September 30, 2024.

Net Interest Income and Net Interest Margin

Net interest income increased $10.6 million to $194.3 million for the three months ended September 30, 2025, from $183.7 million for same period in 2024. The increase in net interest income was primarily due to favorable repricing of deposits and growth in the securities portfolio at favorable market rates.

The Company’s net interest margin increased 12 basis points to 3.43% for the quarter ended September 30, 2025, from 3.31% for the same period last year. The weighted average yield on interest-earning assets for the quarter ended September 30, 2025 decreased eight basis point to 5.76%, compared to 5.84% for the quarter ended September 30, 2024. The weighted average cost of interest-bearing liabilities decreased 23 basis points for the quarter ended September 30, 2025 to 2.96%, compared to 3.19% for the third quarter of 2024. The average cost of interest-bearing deposits for the quarter ended September 30, 2025 was 2.67%, compared to 2.96% for the same period last year. Average non-interest-bearing demand deposits decreased $15.5 million to $3.73 billion for the quarter ended September 30, 2025, compared to $3.74 billion for the quarter ended September 30, 2024. The average cost of total deposits, including non-interest-bearing deposits, was 2.14% for the quarter ended September 30, 2025, compared with 2.36% for the quarter ended September 30, 2024. The average cost of borrowed funds for the quarter ended September 30, 2025 was 3.96%, compared to 3.73% for the same period last year.

Provision for Credit Losses on Loans

For the quarter ended September 30, 2025, the Company recorded a $4.5 million provision for credit losses on loans, compared with a $9.6 million provision for credit losses on loans for the quarter ended September 30, 2024. The provision for credit losses on loans in the quarter was primarily attributable to growth in the loan portfolio, combined with a modestly weakened CECL economic forecast compared to the prior year period. For the three months ended September 30, 2025, net charge-offs totaled $5.4 million, or an annualized 11 basis points of average loans, compared with net charge-offs of $6.8 million, or an annualized 14 basis points of average loans, for the same period last year. Charge-offs in the current quarter were related to the resolution of several non-accrual loans that were largely specifically reserved for in prior periods.

Non-Interest Income and Expense

Non-interest income totaled $27.4 million for the quarter ended September 30, 2025, an increase of $564,000, compared to the same period in 2024. Fee income increased $1.5 million to $11.3 million for the three months ended September 30, 2025, compared to the prior year quarter, primarily due to increases in loan prepayment fee income and deposit fee income. Additionally, other income increased $675,000 to $2.2 million for the three months ended September 30, 2025, compared to the quarter ended September 30, 2024, primarily due to an increase in gains on loan sales, combined with increases in other miscellaneous income. Insurance agency income increased $221,000 to $3.9 million for the three months ended September 30, 2025, compared to the quarter ended September 30, 2024, largely due to an increase in business activity. Partially offsetting these increases to non-interest income, BOLI income decreased $1.6 million to $2.7 million for the three months ended September 30, 2025, compared to the prior year quarter, primarily due to a decrease in benefit claims recognized, while wealth management fees decreased $271,000 to $7.3 million for the three months ended September 30, 2025, compared to the quarter ended September 30, 2024.

For the three months ended September 30, 2025, non-interest expense totaled $113.1 million, a decrease of $22.9 million, compared to the three months ended September 30, 2024. Merger-related expenses decreased $15.6 million for the three months ended September 30, 2025, compared to the same period in 2024. Amortization of intangibles decreased $2.7 million to $9.5 million for the three months ended September 30, 2025, compared to $12.2 million for the same period in 2024, largely due to a decrease in the core deposit intangible amortization related to the Lakeland merger in the current year. Additionally, other operating expenses decreased $2.3 million to $13.5 million for the three months ended September 30, 2025, compared to $15.8 million for the same period in 2024, primarily due to a prior year write-down on a foreclosed property, combined with decreases in legal and professional service expenses. Data processing expenses decreased $1.4 million to $9.1 million for three months ended September 30, 2025, compared to $10.5 million for the same period in 2024, primarily due to core processing system expenses in the prior year related to the addition of Lakeland.

The Company’s annualized adjusted non-interest expense as a percentage of average assets(5) improved to 1.83% for the quarter ended September 30, 2025, compared to 1.98% for the same period in 2024. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)(6) improved to 51.01% for the three months ended September 30, 2025 compared to 57.20% for the same respective period in 2024.

Income Tax Expense

For the three months ended September 30, 2025, the Company's income tax expense was $29.9 million with an effective tax rate of 29.4%, compared with $18.9 million with an effective tax rate of 28.9% for the three months ended September 30, 2024. The increase in tax expense and the effective tax rate for the three months ended September 30, 2025, compared with the same period last year was largely due to an increase in pre-tax income with a greater proportion of that income attributable to taxable sources.

Nine months ended September 30, 2025 compared to the nine months ended September 30, 2024

For the nine months ended September 30, 2025, net income totaled $207.7 million, or $1.59 per basic and diluted share, compared to net income of $67.0 million, or $0.65 per basic and diluted share, for the nine months ended September 30, 2024. While there were no transaction costs related to our merger with Lakeland in 2025, those costs totaled $96.8 million, including an initial CECL provision for credit losses on loans recorded as part of the Lakeland merger, for the nine months ended September 30, 2024.

Net Interest Income and Net Interest Margin

Net interest income increased $144.3 million to $563.2 million for the nine months ended September 30, 2025, from $418.9 million for same period in 2024. The increase in net interest income was largely driven by growth in average earning assets including net assets added in the May 16, 2024 acquisition of Lakeland and related accretion of purchase accounting adjustments, further aided by lower rates on funding.

For the nine months ended September 30, 2025, the net interest margin increased 20 basis points to 3.38%, compared to 3.18% for the nine months ended September 30, 2024. The weighted average yield on interest earning assets increased eight basis points to 5.69% for the nine months ended September 30, 2025, compared to 5.61% for the nine months ended September 30, 2024, while the weighted average cost of interest-bearing liabilities decreased 13 basis points to 2.93% for the nine months ended September 30, 2025, compared to 3.06% for the same period last year. The average cost of interest-bearing deposits decreased 20 basis points to 2.64% for the nine months ended September 30, 2025, compared to 2.84% for the same period last year. Average non-interest-bearing demand deposits increased $818.6 million to $3.72 billion for the nine months ended September 30, 2025, compared with $2.90 billion for the nine months ended September 30, 2024. The average cost of total deposits, including non-interest-bearing deposits, was 2.12% for the nine months ended September 30, 2025, compared with 2.27% for the nine months ended September 30, 2024. The average cost of borrowings for the nine months ended September 30, 2025 was 3.89%, compared to 3.73% for the same period last year.

Provision for Credit Losses on Loans

For the nine months ended September 30, 2025, the Company recorded a $2.2 million provision for credit losses on loans, compared with a provision for credit losses on loans of $75.9 million for the nine months ended September 30, 2024. The provision for credit losses on loans for the nine months ended September 30, 2025 was primarily attributable to overall growth in the loan portfolio, combined with a modestly weakened CECL economic forecast. The provision for credit losses on loans for the prior year period was primarily attributable to an initial CECL provision for credit losses on loans of $60.1 million, recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. For the nine months ended September 30, 2025, net charge-offs totaled $8.6 million or an annualized six basis points of average loans, compared with net charge-offs of $9.1 million, or an annualized eight basis points of average loans, for the nine months ended September 30, 2024.

Non-Interest Income and Expense

For the nine months ended September 30, 2025, non-interest income totaled $81.5 million, an increase of $11.6 million compared to the same period in 2024. Fee income increased $7.3 million to $31.7 million for the nine months ended September 30, 2025, compared to the same period in 2024, primarily due to increases in deposit fee income, loan prepayment fee income and debit and credit card related fee income. Net gains on securities transactions increased $3.1 million for the nine months ended September 30, 2025, primarily due to a prior year $2.8 million loss on the sale of subordinated debt issued by Lakeland from the Provident investment portfolio prior to the merger. Other income increased $3.0 million to $6.2 million for the nine months ended September 30, 2025, compared to $3.2 million for the same period in 2024, primarily due to an increase in gains on sales of SBA and mortgage loans and other miscellaneous income. Additionally, insurance agency income increased $1.5 million to $14.4 million for the nine months ended September 30, 2025, compared to $12.9 million for the same period in 2024, largely due to increases in contingent commissions, retention revenue and new business activity. Partially offsetting these increases in non-interest income, BOLI income decreased $2.1 million to $7.3 million for the nine months ended September 30, 2025, compared to the same period in 2024, primarily due to a decrease in benefit claims recognized, combined with lower equity valuations, while wealth management income decreased $1.3 million to $21.6 million for the nine months ended September 30, 2025, compared to the same period in 2024, mainly due to a decrease in the average market value of assets under management during the period.

Non-interest expense totaled $344.0 million for the nine months ended September 30, 2025, an increase of $20.7 million, compared to $323.2 million for the nine months ended September 30, 2024. Compensation and benefits expense increased $30.4 million to $188.8 million for the nine months ended September 30, 2025, compared to $158.4 million for the nine months ended September 30, 2024, primarily attributable to the addition of Lakeland personnel. Amortization of intangibles increased $9.1 million to $28.5 million for the nine months ended September 30, 2025, compared to $19.4 million for the nine months ended September 30, 2024, largely due to core deposit intangible amortization related to Lakeland. Net occupancy expense increased $7.3 million to $39.7 million for the nine months ended September 30, 2025, compared to the same period in 2024, primarily due to increases in depreciation and maintenance expense related to the addition of Lakeland. Other operating expenses increased $7.0 million to $44.4 million for the nine months ended September 30, 2025, compared to $37.4 million for the same period in 2024, primarily due to a $1.4 million increase in write-downs on foreclosed property, combined with additional expenses due to the addition of Lakeland. Data processing expense increased $2.6 million to $28.3 million for the nine months ended September 30, 2025, compared to $25.7 million for the nine months ended September 30, 2024, primarily due to the addition of Lakeland, while FDIC insurance increased $591,000 to $10.1 million for the nine months ended September 30, 2025, primarily due to the addition of Lakeland. Partially offsetting these increases to non-interest expense, merger-related expenses decreased $36.7 million for the nine months ended September 30, 2025.

Income Tax Expense

For the nine months ended September 30, 2025, the Company's income tax expense was $88.2 million with an effective tax rate of 29.8%, compared with income tax expense of $19.9 million for the nine months ended September 30, 2024. The increase in tax expense for the nine months ended September 30, 2025 compared with the same period last year was largely due to an increase in taxable income, combined with a prior year $5.3 million tax benefit related to the revaluation of deferred tax assets to reflect the imposition by the State of New Jersey of a 2.5% Corporate Transit Fee, effective January 1, 2024. Additionally, prior year pre-tax income was negatively impacted by the initial CECL provision for credit losses on loans of $60.1 million recorded in accordance with GAAP requirements for accounting for business combinations from the Lakeland merger.

Asset Quality

The Company’s total non-performing loans as of September 30, 2025 were $100.4 million, or 0.52% of total loans held for investment, compared to $107.2 million, or 0.56% of total loans as of June 30, 2025 and $72.1 million, or 0.39% of total loans as of December 31, 2024. The $6.8 million decrease in non-performing loans as of September 30, 2025, compared to the trailing quarter, consisted of a $5.7 million decrease in non-performing multi-family loans, a $3.8 million decrease in non-performing commercial mortgage loans and a $159,000 decrease in non-performing consumer loans, partially offset by a $2.0 million increase in non-performing commercial loans, a $649,000 increase in non-performing residential mortgage loans and a $319,000 increase in non-performing construction loans. As of September 30, 2025, impaired loans totaled $85.4 million with related specific reserves of $6.2 million, compared with impaired loans totaling $92.7 million with related specific reserves of $11.4 million as of June 30, 2025. As of December 31, 2024, impaired loans totaled $55.4 million with related specific reserves of $7.5 million.

As of September 30, 2025, the Company’s allowance for credit losses related to the loan portfolio was 0.97% of total loans, compared to 0.98% and 1.04% as of June 30, 2025 and December 31, 2024, respectively. The allowance for credit losses decreased $6.5 million to $187.0 million as of September 30, 2025, from $193.4 million as of December 31, 2024. The decrease in the allowance for credit losses on loans as of September 30, 2025 compared to December 31, 2024 was due to net charge-offs of $8.7 million, partially offset by a $2.2 million provision for credit losses on loans.

The following table sets forth accruing past due loans and non-accrual loans held for investment on the dates indicated, as well as delinquency statistics and certain asset quality ratios.

 

 

September 30, 2025

 

June 30, 2025

 

December 31, 2024

 

 

Number
of
Loans

 

Principal
Balance
of Loans

 

Number
of
Loans

 

Principal
Balance
of Loans

 

Number
of
Loans

 

Principal
Balance
of Loans

 

 

(Dollars in thousands)

Accruing past due loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30 to 59 days past due:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial mortgage loans

 

3

 

 

$

956

 

 

1

 

 

$

129

 

 

7

 

 

$

8,538

 

Multi-family mortgage loans

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

Construction loans

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

Residential mortgage loans

 

32

 

 

 

8,085

 

 

20

 

 

 

5,541

 

 

22

 

 

 

6,388

 

Total mortgage loans

 

35

 

 

 

9,041

 

 

21

 

 

 

5,670

 

 

29

 

 

 

14,926

 

Commercial loans

 

8

 

 

 

729

 

 

4

 

 

 

997

 

 

9

 

 

 

3,026

 

Consumer loans

 

40

 

 

 

2,739

 

 

30

 

 

 

1,592

 

 

47

 

 

 

3,152

 

Total 30 to 59 days past due

 

83

 

 

$

12,509

 

 

55

 

 

$

8,259

 

 

85

 

 

$

21,104

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

60 to 89 days past due:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial mortgage loans

 

4

 

 

$

4,314

 

 

1

 

 

$

347

 

 

4

 

 

$

3,954

 

Multi-family mortgage loans

 

1

 

 

 

879

 

 

1

 

 

 

431

 

 

—

 

 

 

—

 

Construction loans

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

Residential mortgage loans

 

22

 

 

 

6,180

 

 

16

 

 

 

3,816

 

 

17

 

 

 

5,049

 

Total mortgage loans

 

27

 

 

 

11,373

 

 

18

 

 

 

4,594

 

 

21

 

 

 

9,003

 

Commercial loans

 

4

 

 

 

1,390

 

 

13

 

 

 

4,389

 

 

3

 

 

 

1,117

 

Consumer loans

 

11

 

 

 

299

 

 

9

 

 

 

699

 

 

15

 

 

 

856

 

Total 60 to 89 days past due

 

42

 

 

 

13,062

 

 

40

 

 

 

9,682

 

 

39

 

 

 

10,976

 

Total accruing past due loans

 

125

 

 

$

25,571

 

 

95

 

 

$

17,941

 

 

124

 

 

$

32,080

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial mortgage loans

 

13

 

 

$

39,036

 

 

15

 

 

$

42,828

 

 

17

 

 

$

20,883

 

Multi-family mortgage loans

 

1

 

 

 

424

 

 

3

 

 

 

6,143

 

 

6

 

 

 

7,498

 

Construction loans

 

2

 

 

 

19,220

 

 

3

 

 

 

18,901

 

 

2

 

 

 

13,246

 

Residential mortgage loans

 

29

 

 

 

7,858

 

 

25

 

 

 

7,209

 

 

23

 

 

 

4,535

 

Total mortgage loans

 

45

 

 

 

66,538

 

 

46

 

 

 

75,081

 

 

48

 

 

 

46,162

 

Commercial loans

 

42

 

 

 

32,483

 

 

34

 

 

 

30,531

 

 

32

 

 

 

24,243

 

Consumer loans

 

19

 

 

 

1,388

 

 

21

 

 

 

1,547

 

 

23

 

 

 

1,656

 

Total non-accrual loans

 

106

 

 

$

100,409

 

 

101

 

 

$

107,159

 

 

103

 

 

$

72,061

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans to total loans held for investment

 

 

 

 

 

0.52

%

 

 

 

 

 

0.56

%

 

 

 

 

 

0.39

%

Allowance for loan losses to total non-performing loans

 

 

 

 

 

186.21

%

 

 

 

 

 

175.32

%

 

 

 

 

 

268.43

%

Allowance for loan losses to total loans held for investment

 

 

 

 

 

0.97

%

 

 

 

 

 

0.98

%

 

 

 

 

 

1.04

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At September 30, 2025 and June 30, 2025, there were no non-accrual or past due loans held for sale, respectively. At December 31, 2024, total non-accrual loans held for sale, which are not in the table above, totaled $2.4 million. Additionally, at December 31, 2024, total past due loans held for sale, including non-accrual loans held for sale, totaled $4.8 million.

At September 30, 2025 and December 31, 2024, the Company held foreclosed assets of $2.0 million and $9.5 million, respectively. During the nine months ended September 30, 2025, there was a write-down of one foreclosed commercial property of $2.7 million based on a contracted sales price. The sale of this property closed in the second quarter of 2025, which reduced foreclosed assets by an additional $5.8 million. There was one addition to foreclosed assets with an aggregate carrying value of $1.0 million. Foreclosed assets as of September 30, 2025 were comprised of two commercial properties. Total non-performing assets at September 30, 2025 increased $20.9 million to $102.4 million, or 0.41% of total assets, from $81.5 million, or 0.34% of total assets at December 31, 2024.

Balance Sheet Summary

Total assets as of September 30, 2025 were $24.83 billion, a $780.9 million increase from December 31, 2024. The increase in total assets was primarily due to a $626.7 million increase in loans held for investment and a $344.3 million increase in total investments, partially offset by a $148.1 million decrease in loans held for sale, and decreases in intangibles and other assets.

The Company’s loans held for investment portfolio totaled $19.29 billion as of September 30, 2025 and $18.66 billion as of December 31, 2024. The loan portfolio consisted of the following:

 

September 30, 2025

 

June 30, 2025

 

December 31, 2024

 

(Dollars in thousands)

Mortgage loans:

 

 

 

 

 

Commercial

$

7,318,725

 

 

$

7,313,904

 

 

$

7,228,078

 

Multi-family

 

3,534,751

 

 

 

3,517,509

 

 

 

3,382,933

 

Construction

 

719,961

 

 

 

751,914

 

 

 

823,503

 

Residential

 

1,977,483

 

 

 

1,985,355

 

 

 

2,010,637

 

Total mortgage loans

 

13,550,920

 

 

 

13,568,682

 

 

 

13,445,151

 

Commercial loans

 

4,837,934

 

 

 

4,688,888

 

 

 

4,447,672

 

Mortgage warehouse lines

 

292,133

 

 

 

240,134

 

 

 

160,928

 

Consumer loans

 

614,983

 

 

 

617,190

 

 

 

613,819

 

Total gross loans

 

19,295,970

 

 

 

19,114,894

 

 

 

18,667,570

 

Premiums on purchased loans

 

1,362

 

 

 

1,308

 

 

 

1,338

 

Net deferred fees and unearned discounts

 

(11,265

)

 

 

(11,372

)

 

 

(9,538

)

Total loans

$

19,286,067

 

 

$

19,104,830

 

 

$

18,659,370

 

 

 

 

 

 

 

 

 

 

 

 

 

During the three months ended September 30, 2025, the loans held for investment portfolio had net increases of $149.0 million of commercial loans, $52.0 million of mortgage warehouse lines, $17.2 million of multi-family loans and $4.8 million of commercial mortgage loans, partially offset by net decreases of $32.0 million of construction loans, $7.9 million of residential mortgage loans and $2.2 million of consumer loans. Total commercial loans, including mortgage warehouse lines, commercial mortgage, multi-family and construction loans, represented 86.6% of the loan portfolio as of September 30, 2025, compared to 85.9% as of December 31, 2024.

For the nine months ended September 30, 2025, loan funding, including advances on lines of credit, totaled $7.00 billion, compared with $2.53 billion for the same period in 2024.

As of September 30, 2025, the Company’s unfunded loan commitments totaled $3.82 billion, including commitments of $2.20 billion in commercial loans, $572.9 million in construction loans and $312.0 million in commercial mortgage loans. Unfunded loan commitments as of December 31, 2024 and September 30, 2024 were $2.73 billion and $2.97 billion, respectively.

The loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $2.89 billion as of September 30, 2025, compared to $1.79 billion and $1.98 billion as of December 31, 2024 and September 30, 2024, respectively.

Total investment securities were $3.57 billion as of September 30, 2025, a $344.3 million increase from December 31, 2024. This increase was primarily due to purchases of mortgage-backed securities and a decrease in unrealized losses on available for sale debt securities.

Total deposits increased $472.4 million during the nine months ended September 30, 2025, to $19.10 billion. Total savings and demand deposit accounts increased $276.2 million to $15.73 billion as of September 30, 2025, while total time deposits increased $196.2 million to $3.36 billion as of September 30, 2025. The increase in time deposits consisted of a $204.3 million increase in brokered time deposits, partially offset by an $8.1 million decrease in retail time deposits. The increase in savings and demand deposits was largely attributable to $270.6 million increase in interest bearing demand deposits and a $144.5 million increase in money market deposits, partially offset by a $101.7 million decrease in savings deposits and a $37.2 million decrease in non-interest bearing demand deposits.

Borrowed funds increased $188.9 million during the nine months ended September 30, 2025, to $2.21 billion. Borrowed funds represented 8.9% of total assets as of September 30, 2025, an increase from 8.4% as of December 31, 2024.

Stockholders’ equity increased $165.8 million during the nine months ended September 30, 2025, to $2.77 billion, primarily due to net income earned for the period and a decrease in unrealized losses on available for sale debt securities, partially offset by cash dividends paid to stockholders. For the three and nine months ended September 30, 2025, common stock repurchases totaled 1,335 shares at an average cost of $18.15 per share and 157,905 shares at an average cost of $18.07 per share, respectively, all of which were made in connection with withholding to cover income taxes on the vesting of stock-based compensation. As of September 30, 2025, approximately 814,634 shares remained eligible for repurchase under the current stock repurchase authorization. Book value per share and tangible book value per share(1) as of September 30, 2025 were $21.18 and $15.13, respectively, compared with $19.93 and $13.66, respectively, as of December 31, 2024.

About the Company

Provident Financial Services, Inc. is the holding company for Provident Bank, a community-oriented bank offering "Commitment you can count on" since 1839. Provident Bank provides a comprehensive array of financial products and services through its network of branches throughout New Jersey, Bucks, Lehigh and Northampton counties in Pennsylvania, as well as Orange, Queens and Nassau Counties in New York. The Bank also provides fiduciary and wealth management services through its wholly owned subsidiary, Beacon Trust Company and insurance services through its wholly owned subsidiary, Provident Protection Plus, Inc.

Post Earnings Conference Call

Representatives of the Company will hold a conference call for investors on Thursday, October 30, 2025 at 2:00 p.m. Eastern Time to discuss the Company’s financial results for the quarter ended September 30, 2025. The call may be accessed by dialing 1-888-412-4131 (United States Toll Free) and 1-646-960-0134 (United States Local). Speakers will need to enter conference ID code (3610756) before being met by a live operator. Internet access to the call is also available (listen only) at provident.bank by going to Investor Relations and clicking on "Webcast."

A supplemental 3rd Quarter results investor presentation is also available on our investor relations website under “Presentations.”

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 may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” "project," "intend," “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those set forth in Item 1A of the Company's Annual Report on Form 10-K, as supplemented by its Quarterly Reports on Form 10-Q, and those related to the economic environment, particularly in the market areas in which the Company operates, inflation and unemployment, competitive products and pricing, real estate values, fiscal and monetary policies of the U.S. Government, tariffs, changes in accounting policies and practices that may be adopted by the regulatory agencies and the accounting standards setters, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, potential goodwill impairment, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets, the availability of and costs associated with sources of liquidity, and the impact of a recent shutdown of the federal government.

The Company cautions readers not to place undue reliance on any such forward-looking statements which speak only as of the date they are made. The Company advises readers that the factors listed above could affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not assume any duty, and does not undertake, to update any forward-looking statements to reflect events or circumstances after the date of this statement.

Footnotes

(1) Annualized adjusted pre-tax, pre-provision return on average assets, annualized return on average tangible equity, tangible common equity capital ratio, tangible book value per share, annualized adjusted non-interest expense as a percentage of average assets and the efficiency ratio are non-GAAP financial measures. Please refer to the Notes following the Consolidated Financial Highlights which contain the reconciliation of GAAP to non-GAAP financial measures and the associated calculations.

 

 

 

 

 

 

 

 

 

 

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

Consolidated Financial Highlights

(Dollars in Thousands, except share data) (Unaudited)

 

 

 

 

 

At or for the
Three Months Ended

 

At or for the
Nine Months Ended

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

September 30,

 

2025

 

2025

 

2024

 

2025

 

2024

Statement of Income

 

 

 

 

 

 

 

 

 

Net interest income

$

194,332

 

 

$

187,094

 

 

$

183,701

 

 

$

563,154

 

 

$

418,877

 

Provision charge (benefit) for credit losses

 

7,044

 

 

 

(2,888

)

 

 

9,299

 

 

 

4,794

 

 

 

78,684

 

Non-interest income

 

27,419

 

 

 

27,075

 

 

 

26,855

 

 

 

81,524

 

 

 

69,937

 

Non-interest expense

 

113,092

 

 

 

114,614

 

 

 

136,002

 

 

 

343,973

 

 

 

323,224

 

Income before income tax expense

 

101,615

 

 

 

102,443

 

 

 

65,255

 

 

 

295,911

 

 

 

86,906

 

Net income

 

71,720

 

 

 

71,981

 

 

 

46,405

 

 

 

207,729

 

 

 

67,001

 

Diluted earnings per share

$

0.55

 

 

$

0.55

 

 

$

0.36

 

 

$

1.59

 

 

$

0.65

 

Interest rate spread

 

2.80

%

 

 

2.74

%

 

 

2.65

%

 

 

2.76

%

 

 

2.55

%

Net interest margin

 

3.43

%

 

 

3.36

%

 

 

3.31

%

 

 

3.38

%

 

 

3.18

%

 

 

 

 

 

 

 

 

 

 

Profitability

 

 

 

 

 

 

 

 

 

Annualized return on average assets

 

1.16

%

 

 

1.19

%

 

 

0.76

%

 

 

1.14

%

 

 

0.47

%

Annualized adjusted return on average assets(1)

 

1.16

%

 

 

1.19

%

 

 

0.95

%

 

 

1.15

%

 

 

0.66

%

Annualized return on average equity

 

10.39

%

 

 

10.76

%

 

 

6.94

%

 

 

10.33

%

 

 

4.14

%

Annualized adjusted return on average equity(1)

 

10.39

%

 

 

10.76

%

 

 

8.62

%

 

 

10.43

%

 

 

5.83

%

Annualized return on average tangible equity(4)

 

16.01

%

 

 

16.79

%

 

 

12.06

%

 

 

16.18

%

 

 

7.13

%

Annualized adjusted return on average tangible equity(1)

 

16.01

%

 

 

16.79

%

 

 

14.53

%

 

 

16.31

%

 

 

9.56

%

Annualized adjusted non-interest expense to average assets(4)

 

1.83

%

 

 

1.89

%

 

 

1.98

%

 

 

1.88

%

 

 

1.99

%

Efficiency ratio(6)

 

51.01

%

 

 

53.52

%

 

 

57.20

%

 

 

52.95

%

 

 

58.27

%

 

 

 

 

 

 

 

 

 

 

Asset Quality

 

 

 

 

 

 

 

 

 

Non-accrual loans

$

100,409

 

 

$

107,159

 

 

$

89,934

 

 

$

100,409

 

 

$

89,934

 

90+ and still accruing

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Non-performing loans

 

100,409

 

 

 

107,159

 

 

 

88,061

 

 

 

100,409

 

 

 

88,061

 

Foreclosed assets

 

2,015

 

 

 

963

 

 

 

9,801

 

 

 

2,015

 

 

 

9,801

 

Non-performing assets

 

102,424

 

 

 

108,122

 

 

 

97,862

 

 

 

102,424

 

 

 

97,862

 

Non-performing loans to total loans held for investment

 

0.52

%

 

 

0.56

%

 

 

0.47

%

 

 

0.52

%

 

 

0.47

%

Non-performing assets to total assets

 

0.41

%

 

 

0.44

%

 

 

0.41

%

 

 

0.41

%

 

 

0.41

%

Allowance for loan losses

$

186,969

 

 

$

187,871

 

 

$

191,175

 

 

$

186,969

 

 

$

191,175

 

Allowance for loan losses to total non-performing loans

 

186.21

%

 

 

175.32

%

 

 

217.09

%

 

 

186.21

%

 

 

217.09

%

Allowance for loan losses to total loans held for investment

 

0.97

%

 

 

0.98

%

 

 

1.02

%

 

 

0.97

%

 

 

1.02

%

Net loan charge-offs

$

5,401

 

 

$

1,249

 

 

$

6,756

 

 

$

8,638

 

 

$

9,067

 

Annualized net loan charge-offs to average total loans

 

0.11

%

 

 

0.03

%

 

 

0.14

%

 

 

0.06

%

 

 

0.08

%

 

 

 

 

 

 

 

 

 

 

Average Balance Sheet Data

 

 

 

 

 

 

 

 

 

Assets

$

24,518,290

 

 

$

24,349,808

 

 

$

24,248,038

 

 

$

24,312,490

 

 

$

19,198,113

 

Loans, net

 

18,906,763

 

 

 

18,827,305

 

 

 

18,531,939

 

 

 

18,776,139

 

 

 

14,631,071

 

Earning assets

 

22,492,065

 

 

 

22,329,230

 

 

 

21,809,226

 

 

 

22,257,800

 

 

 

17,305,446

 

Core deposits

 

15,602,031

 

 

 

15,222,027

 

 

 

15,394,715

 

 

 

15,440,865

 

 

 

12,271,839

 

Borrowings

 

2,136,111

 

 

 

2,490,379

 

 

 

2,125,149

 

 

 

2,182,319

 

 

 

2,074,958

 

Interest-bearing liabilities

 

17,704,286

 

 

 

17,612,934

 

 

 

17,304,569

 

 

 

17,539,874

 

 

 

13,757,895

 

Stockholders' equity

 

2,738,414

 

 

 

2,684,342

 

 

 

2,660,470

 

 

 

2,687,384

 

 

 

2,163,856

 

Average yield on interest-earning assets

 

5.76

%

 

 

5.68

%

 

 

5.84

%

 

 

5.69

%

 

 

5.61

%

Average cost of interest-bearing liabilities

 

2.96

%

 

 

2.94

%

 

 

3.19

%

 

 

2.93

%

 

 

3.06

%

 

 

 

 

 

 

 

 

 

 


 

Notes and Reconciliation of GAAP and Non-GAAP Financial Measures
(Dollars in Thousands, except share data)

 

The Company has presented the following non-GAAP (U.S. 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. Presentation of these non-GAAP financial measures is consistent with how the Company evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Company’s industry. Investors should recognize that the Company’s presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and the Company strongly encourages a review of its condensed consolidated financial statements in their entirety.

 

 

 

 

 

 

 

 

 

 

 

(1) Annualized Adjusted Return on Average Assets, Equity and Tangible Equity

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

September 30,

 

 

2025

 

2025

 

2024

 

2025

 

2024

Net Income

 

$

71,720

 

 

$

71,981

 

 

$

46,405

 

 

$

207,729

 

 

$

67,001

 

Write-down on ORE property

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,690

 

 

 

—

 

Merger-related transaction costs

 

 

—

 

 

 

—

 

 

 

15,567

 

 

 

—

 

 

 

36,684

 

Less: income tax expense

 

 

—

 

 

 

—

 

 

 

(4,306

)

 

 

(809

)

 

 

(9,274

)

Annualized adjusted net income

 

$

71,720

 

 

 

71,981

 

 

 

57,666

 

 

$

209,610

 

 

$

94,411

 

Plus: Amortization of Intangibles (net of tax)

 

 

6,639

 

 

 

6,639

 

 

 

8,551

 

 

$

19,922

 

 

$

13,577

 

Annualized adjusted net income for annualized adjusted return on average tangible equity

 

$

78,359

 

 

$

78,620

 

 

$

66,217

 

 

$

229,531

 

 

$

107,988

 

 

 

 

 

 

 

 

 

 

 

 

Annualized Adjusted Return on Average Assets

 

 

1.16

%

 

 

1.19

%

 

 

0.95

%

 

 

1.15

%

 

 

0.66

%

Annualized Adjusted Return on Average Equity

 

 

10.39

%

 

 

10.76

%

 

 

8.62

%

 

 

10.43

%

 

 

5.83

%

Annualized Adjusted Return on Average Tangible Equity

 

 

16.01

%

 

 

16.79

%

 

 

14.53

%

 

 

16.31

%

 

 

9.56

%

 

 

 

 

 

 

 

 

 

 

 

(2) Annualized adjusted pre-tax, pre-provision ("PTPP") returns on average assets, average equity and average tangible equity

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

September 30,

 

 

2025

 

2025

 

2024

 

2025

 

2024

Net income

 

$

71,720

 

 

$

71,981

 

 

$

46,405

 

 

$

207,729

 

 

$

67,001

 

Adjustments to net income:

 

 

 

 

 

 

 

 

 

 

Provision (benefit) charge for credit losses

 

 

7,044

 

 

 

(2,888

)

 

 

9,299

 

 

 

4,794

 

 

 

78,684

 

Write-down on ORE property

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,690

 

 

 

—

 

Net loss on Lakeland bond sale

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,839

 

Merger-related transaction costs

 

 

—

 

 

 

—

 

 

 

15,567

 

 

 

—

 

 

 

36,684

 

Income tax expense

 

 

29,895

 

 

 

30,462

 

 

 

18,850

 

 

 

88,182

 

 

 

19,905

 

PTPP income

 

$

108,659

 

 

$

99,555

 

 

$

90,121

 

 

$

303,395

 

 

$

205,113

 

 

 

 

 

 

 

 

 

 

 

 

Annualized PTPP income

 

$

431,093

 

 

$

399,314

 

 

$

358,525

 

 

$

405,638

 

 

$

273,983

 

Average assets

 

$

24,518,290

 

 

$

24,349,808

 

 

$

24,248,038

 

 

$

24,312,490

 

 

$

19,198,113

 

Average equity

 

$

2,738,414

 

 

$

2,684,342

 

 

$

2,660,470

 

 

$

2,687,384

 

 

$

2,163,856

 

Average tangible equity

 

$

1,941,625

 

 

$

1,877,923

 

 

$

1,813,327

 

 

$

1,881,067

 

 

$

1,508,594

 

 

 

 

 

 

 

 

 

 

 

 

Annualized PTPP return on average assets

 

 

1.76

%

 

 

1.64

%

 

 

1.48

%

 

 

1.67

%

 

 

1.43

%

Annualized PTPP return on average equity

 

 

15.74

%

 

 

14.88

%

 

 

13.48

%

 

 

15.09

%

 

 

12.66

%

Annualized PTPP return on average tangible equity

 

 

22.20

%

 

 

21.26

%

 

 

19.77

%

 

 

21.56

%

 

 

18.16

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3) Tangible Common Equity Ratio, Book and Tangible Book Value per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

June 30,

 

December 31,

 

 

 

 

 

 

2025

 

2025

 

2024

Total assets

 

 

 

 

 

$

24,832,763

 

 

$

24,547,286

 

 

$

24,051,825

 

Less: total intangible assets

 

 

 

 

 

 

790,729

 

 

 

800,232

 

 

 

819,230

 

Total tangible assets

 

 

 

 

 

$

24,042,034

 

 

$

23,747,054

 

 

$

23,232,595

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

 

 

 

 

$

2,767,035

 

 

$

2,707,555

 

 

$

2,601,207

 

Less: total intangible assets

 

 

 

 

 

 

790,729

 

 

 

800,232

 

 

 

819,230

 

Total tangible stockholders' equity

 

 

 

 

 

$

1,976,306

 

 

$

1,907,323

 

 

$

1,781,977

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity ratio

 

 

 

 

 

 

8.22

%

 

 

8.03

%

 

 

7.67

%

Shares outstanding

 

 

 

 

 

 

130,621,757

 

 

 

130,624,243

 

 

 

130,489,493

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share (total stockholders' equity/shares outstanding)

 

 

 

 

 

$

21.18

 

 

$

20.73

 

 

$

19.93

 

Tangible book value per share (total tangible stockholders' equity/shares outstanding)

 

 

 

 

 

$

15.13

 

 

$

14.60

 

 

$

13.66

 

 

 

 

 

 

 

 

 

 

 

 

(4) Annualized Return on Average Tangible Equity

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

September 30,

 

 

2025

 

2025

 

2024

 

2025

 

2024

Total average stockholders' equity

 

$

2,738,414

 

 

$

2,684,342

 

 

$

2,660,470

 

 

$

2,687,384

 

 

$

2,163,856

 

Less: total average intangible assets

 

 

796,789

 

 

 

806,419

 

 

 

847,143

 

 

 

806,317

 

 

 

655,262

 

Total average tangible stockholders' equity

 

$

1,941,625

 

 

$

1,877,923

 

 

$

1,813,327

 

 

$

1,881,067

 

 

$

1,508,594

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

71,720

 

 

$

71,981

 

 

$

46,405

 

 

$

207,729

 

 

$

67,001

 

Plus: Amortization of Intangibles, net of tax

 

 

6,639

 

 

 

6,639

 

 

 

8,551

 

 

 

19,922

 

 

 

13,577

 

Total net income

 

$

78,359

 

 

$

78,620

 

 

$

54,956

 

 

$

227,651

 

 

$

80,578

 

 

 

 

 

 

 

 

 

 

 

 

Annualized return on average tangible equity (net income/total average tangible stockholders' equity)

 

 

16.01

%

 

 

16.79

%

 

 

12.06

%

 

 

16.18

%

 

 

7.13

%

 

 

 

 

 

 

 

 

 

 

 

(5) Annualized Adjusted Non-Interest Expense to Average Assets

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

September 30,

 

 

2025

 

2025

 

2024

 

2025

 

2024

Reported non-interest expense

 

$

113,092

 

 

$

114,614

 

 

$

136,002

 

 

$

343,973

 

 

$

323,224

 

Adjustments to non-interest expense:

 

 

 

 

 

 

 

 

 

 

Write-down on ORE property

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,690

 

 

 

—

 

Merger-related transaction costs

 

 

—

 

 

 

—

 

 

 

15,567

 

 

 

—

 

 

 

36,684

 

Adjusted non-interest expense

 

$

113,092

 

 

$

114,614

 

 

$

120,435

 

 

$

341,283

 

 

$

286,540

 

 

 

 

 

 

 

 

 

 

 

 

Annualized adjusted non-interest expense

 

$

448,680

 

 

$

459,715

 

 

$

479,122

 

 

$

456,294

 

 

$

382,751

 

 

 

 

 

 

 

 

 

 

 

 

Average assets

 

$

24,518,290

 

 

$

24,349,808

 

 

$

24,248,038

 

 

$

24,312,490

 

 

$

19,198,113

 

 

 

 

 

 

 

 

 

 

 

 

Annualized adjusted non-interest expense/average assets

 

 

1.83

%

 

 

1.89

%

 

 

1.98

%

 

 

1.88

%

 

 

1.99

%

 

 

 

 

 

 

 

 

 

 

 

(6) Efficiency Ratio Calculation

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

September 30,

 

 

2025

 

2025

 

2024

 

2025

 

2024

Net interest income

 

$

194,332

 

 

$

187,094

 

 

$

183,701

 

 

$

563,154

 

 

$

418,877

 

Reported non-interest income

 

 

27,419

 

 

 

27,075

 

 

 

26,855

 

 

 

81,524

 

 

 

69,937

 

Adjustments to non-interest income:

 

 

 

 

 

 

 

 

 

 

Net (gain) loss on securities transactions

 

 

(67

)

 

 

—

 

 

 

2

 

 

 

(153

)

 

 

2,972

 

Adjusted non-interest income

 

 

27,352

 

 

 

27,075

 

 

 

26,853

 

 

 

81,371

 

 

 

72,909

 

Total income

 

$

221,684

 

 

$

214,169

 

 

$

210,554

 

 

$

644,525

 

 

$

491,786

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted non-interest expense

 

$

113,092

 

 

$

114,614

 

 

$

120,435

 

 

$

341,283

 

 

$

286,540

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio (adjusted non-interest expense/income)

 

 

51.01

%

 

 

53.52

%

 

 

57.20

%

 

 

52.95

%

 

 

58.27

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

Consolidated Statements of Financial Condition

September 30, 2025 (Unaudited) and December 31, 2024

(Dollars in Thousands)

 

 

 

 

Assets

September 30, 2025

 

December 31, 2024

Cash and cash equivalents

$

301,614

 

 

$

205,939

 

Available for sale debt securities, at fair value

 

3,141,320

 

 

 

2,768,915

 

Held to maturity debt securities, (net of $19,000 allowance as of September 30, 2025 (unaudited) and $14,000 allowance as of December 31, 2024)

 

292,120

 

 

 

327,623

 

Equity securities, at fair value

 

19,682

 

 

 

19,110

 

Federal Home Loan Bank stock

 

119,551

 

 

 

112,767

 

Loans held for sale

 

14,329

 

 

 

162,453

 

Loans held for investment

 

19,286,067

 

 

 

18,659,370

 

Less allowance for credit losses

 

186,969

 

 

 

193,432

 

Net loans

 

19,113,427

 

 

 

18,628,391

 

Foreclosed assets, net

 

2,015

 

 

 

9,473

 

Banking premises and equipment, net

 

113,098

 

 

 

119,622

 

Accrued interest receivable

 

94,647

 

 

 

91,160

 

Intangible assets

 

790,729

 

 

 

819,230

 

Bank-owned life insurance

 

412,253

 

 

 

405,893

 

Other assets

 

432,307

 

 

 

543,702

 

Total assets

$

24,832,763

 

 

$

24,051,825

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

Deposits:

 

 

 

Demand deposits

$

14,153,908

 

 

$

13,775,991

 

Savings deposits

 

1,577,946

 

 

 

1,679,667

 

Certificates of deposit of $250,000 or more

 

886,137

 

 

 

789,342

 

Other time deposits

 

2,478,253

 

 

 

2,378,813

 

Total deposits

 

19,096,244

 

 

 

18,623,813

 

Mortgage escrow deposits

 

46,255

 

 

 

42,247

 

Borrowed funds

 

2,209,310

 

 

 

2,020,435

 

Subordinated debentures

 

405,340

 

 

 

401,608

 

Other liabilities

 

308,579

 

 

 

362,515

 

Total liabilities

 

22,065,728

 

 

 

21,450,618

 

 

 

 

 

Stockholders' equity:

 

 

 

Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued

 

—

 

 

 

—

 

Common stock, $0.01 par value, 200,000,000 shares authorized, 137,565,966 shares issued and 130,621,757 shares outstanding as of September 30, 2025 and 130,489,493 outstanding as of December 31, 2024

 

1,376

 

 

 

1,376

 

Additional paid-in capital

 

1,841,920

 

 

 

1,834,495

 

Retained earnings

 

1,102,269

 

 

 

989,111

 

Accumulated other comprehensive loss

 

(87,243

)

 

 

(135,355

)

Treasury stock

 

(91,287

)

 

 

(88,420

)

Total stockholders' equity

 

2,767,035

 

 

 

2,601,207

 

Total liabilities and stockholders' equity

$

24,832,763

 

 

$

24,051,825

 

 

 

 

 

 

 

 

 


 

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

Consolidated Statements of Income

Three months ended September 30, 2025, June 30, 2025 and September 30, 2024, and nine months ended September 30, 2025 and 2024 (Unaudited)

(Dollars in Thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

September 30,

 

2025

 

2025

 

2024

 

2025

 

2024

Interest and dividend income:

 

 

 

 

 

 

 

 

 

 

 

 

Real estate secured loans

$

197,252

 

 

$

192,792

 

 

$

197,857

 

 

$

577,097

 

 

$

461,632

 

Commercial loans

 

81,943

 

 

 

78,854

 

 

 

81,183

 

 

 

236,616

 

 

 

175,815

 

Consumer loans

 

10,847

 

 

 

10,464

 

 

 

12,947

 

 

 

31,470

 

 

 

25,820

 

Available for sale debt securities, equity securities and Federal Home Loan Bank stock

 

33,578

 

 

 

31,444

 

 

 

25,974

 

 

 

94,666

 

 

 

58,698

 

Held to maturity debt securities

 

1,897

 

 

 

1,966

 

 

 

2,136

 

 

 

5,859

 

 

 

6,761

 

Deposits, federal funds sold and other short-term investments

 

764

 

 

 

788

 

 

 

2,425

 

 

 

2,227

 

 

 

5,466

 

Total interest income

 

326,281

 

 

 

316,308

 

 

 

322,522

 

 

 

947,935

 

 

 

734,192

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

102,094

 

 

 

96,257

 

 

 

110,009

 

 

 

295,771

 

 

 

243,602

 

Borrowed funds

 

21,307

 

 

 

24,470

 

 

 

19,923

 

 

 

63,555

 

 

 

57,871

 

Subordinated debt

 

8,548

 

 

 

8,487

 

 

 

8,889

 

 

 

25,455

 

 

 

13,842

 

Total interest expense

 

131,949

 

 

 

129,214

 

 

 

138,821

 

 

 

384,781

 

 

 

315,315

 

Net interest income

 

194,332

 

 

 

187,094

 

 

 

183,701

 

 

 

563,154

 

 

 

418,877

 

Provision charge (benefit) for credit losses

 

7,044

 

 

 

(2,888

)

 

 

9,299

 

 

 

4,794

 

 

 

78,684

 

Net interest income after provision for credit losses

 

187,288

 

 

 

189,982

 

 

 

174,402

 

 

 

558,360

 

 

 

340,193

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

 

 

Fees

 

11,336

 

 

 

10,736

 

 

 

9,816

 

 

 

31,727

 

 

 

24,426

 

Wealth management income

 

7,349

 

 

 

6,948

 

 

 

7,620

 

 

 

21,625

 

 

 

22,878

 

Insurance agency income

 

3,852

 

 

 

4,942

 

 

 

3,631

 

 

 

14,445

 

 

 

12,912

 

Bank-owned life insurance

 

2,662

 

 

 

2,585

 

 

 

4,308

 

 

 

7,340

 

 

 

9,448

 

Net gain (loss) on securities transactions

 

67

 

 

 

—

 

 

 

2

 

 

 

153

 

 

 

(2,972

)

Other income

 

2,153

 

 

 

1,864

 

 

 

1,478

 

 

 

6,234

 

 

 

3,245

 

Total non-interest income

 

27,419

 

 

 

27,075

 

 

 

26,855

 

 

 

81,524

 

 

 

69,937

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and employee benefits

 

63,202

 

 

 

63,249

 

 

 

63,468

 

 

 

188,817

 

 

 

158,404

 

Net occupancy expense

 

12,773

 

 

 

13,011

 

 

 

12,790

 

 

 

39,711

 

 

 

32,452

 

Data processing expense

 

9,102

 

 

 

9,599

 

 

 

10,481

 

 

 

28,305

 

 

 

25,698

 

FDIC Insurance

 

3,418

 

 

 

3,341

 

 

 

4,180

 

 

 

10,144

 

 

 

9,553

 

Amortization of intangibles

 

9,497

 

 

 

9,497

 

 

 

12,231

 

 

 

28,496

 

 

 

19,420

 

Advertising and promotion expense

 

1,640

 

 

 

1,429

 

 

 

1,524

 

 

 

4,124

 

 

 

3,661

 

Merger-related expenses

 

—

 

 

 

—

 

 

 

15,567

 

 

 

—

 

 

 

36,684

 

Other operating expenses

 

13,460

 

 

 

14,488

 

 

 

15,761

 

 

 

44,376

 

 

 

37,352

 

Total non-interest expense

 

113,092

 

 

 

114,614

 

 

 

136,002

 

 

 

343,973

 

 

 

323,224

 

Net income before income tax expense

 

101,615

 

 

 

102,443

 

 

 

65,255

 

 

 

295,911

 

 

 

86,906

 

Income tax expense

 

29,895

 

 

 

30,462

 

 

 

18,850

 

 

 

88,182

 

 

 

19,905

 

Net income

$

71,720

 

 

$

71,981

 

 

$

46,405

 

 

$

207,729

 

 

$

67,001

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

$

0.55

 

 

$

0.55

 

 

$

0.36

 

 

$

1.59

 

 

$

0.65

 

Average basic shares outstanding

 

130,506,517

 

 

 

130,484,287

 

 

 

129,941,845

 

 

 

130,439,534

 

 

 

102,819,042

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

$

0.55

 

 

$

0.55

 

 

$

0.36

 

 

$

1.59

 

 

$

0.65

 

Average diluted shares outstanding

 

130,553,819

 

 

 

130,500,143

 

 

 

130,004,870

 

 

 

130,479,443

 

 

 

102,845,261

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

Net Interest Margin Analysis

Quarterly Average Balances

(Dollars in Thousands) (Unaudited)

 

September 30, 2025

 

June 30, 2025

 

September 30, 2024

 

Average Balance

 

Interest

 

Average
Yield/Cost

 

Average Balance

 

Interest

 

Average
Yield/Cost

 

Average Balance

 

Interest

 

Average
Yield/Cost

Interest-Earning Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

$

79,471

 

$

764

 

3.82

%

 

$

75,714

 

$

788

 

4.21

%

 

$

179,313

 

$

2,425

 

5.38

%

Available for sale debt securities

 

3,070,080

 

 

30,952

 

4.03

%

 

 

2,958,325

 

 

29,092

 

3.95

%

 

 

2,644,262

 

 

24,608

 

3.71

%

Held to maturity debt securities, net(1)

 

299,506

 

 

1,897

 

2.53

%

 

 

315,204

 

 

1,966

 

2.49

%

 

 

342,217

 

 

2,136

 

2.50

%

Equity securities, at fair value

 

19,457

 

 

120

 

2.47

%

 

 

19,235

 

 

214

 

4.44

%

 

 

19,654

 

 

276

 

5.62

%

Total securities

 

3,389,043

 

 

32,969

 

3.89

%

 

 

3,292,764

 

 

31,272

 

3.81

%

 

 

3,006,133

 

 

27,020

 

3.58

%

Federal Home Loan Bank stock

 

116,788

 

 

2,506

 

8.58

%

 

 

133,447

 

 

2,138

 

6.44

%

 

 

91,841

 

 

1,090

 

4.75

%

Net loans:(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total mortgage loans

 

13,390,032

 

 

197,252

 

5.85

%

 

 

13,398,650

 

 

192,792

 

5.77

%

 

 

13,363,265

 

 

197,857

 

5.83

%

Total commercial loans

 

4,908,131

 

 

81,943

 

6.63

%

 

 

4,816,237

 

 

78,854

 

6.57

%

 

 

4,546,088

 

 

81,183

 

7.05

%

Total consumer loans

 

608,600

 

 

10,847

 

7.07

%

 

 

612,418

 

 

10,464

 

6.85

%

 

 

622,586

 

 

12,947

 

8.27

%

Total net loans

 

18,906,763

 

 

290,042

 

6.09

%

 

 

18,827,305

 

 

282,110

 

6.01

%

 

 

18,531,939

 

 

291,987

 

6.21

%

Total interest-earning assets

$

22,492,065

 

$

326,281

 

5.76

%

 

$

22,329,230

 

$

316,308

 

5.68

%

 

$

21,809,226

 

$

322,522

 

5.84

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Interest Earning Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

154,859

 

 

 

 

 

 

150,464

 

 

 

 

 

 

341,505

 

 

 

 

Other assets

 

1,871,366

 

 

 

 

 

 

1,870,114

 

 

 

 

 

 

2,097,307

 

 

 

 

Total assets

$

24,518,290

 

 

 

 

 

$

24,349,808

 

 

 

 

 

$

24,248,038

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

$

10,280,314

 

$

70,584

 

2.72

%

 

$

9,874,149

 

$

64,803

 

2.63

%

 

$

9,942,053

 

$

74,864

 

3.00

%

Savings deposits

 

1,596,072

 

 

896

 

0.22

%

 

 

1,647,746

 

 

900

 

0.22

%

 

 

1,711,502

 

 

1,006

 

0.23

%

Time deposits

 

3,287,241

 

 

30,614

 

3.69

%

 

 

3,197,374

 

 

30,555

 

3.83

%

 

 

3,112,598

 

 

34,139

 

4.36

%

Total deposits

 

15,163,627

 

 

102,094

 

2.67

%

 

 

14,719,269

 

 

96,258

 

2.62

%

 

 

14,766,153

 

 

110,009

 

2.96

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowed funds

 

2,136,111

 

 

21,307

 

3.96

%

 

 

2,490,379

 

 

24,470

 

3.94

%

 

 

2,125,149

 

 

19,923

 

3.73

%

Subordinated debentures

 

404,548

 

 

8,548

 

8.38

%

 

 

403,286

 

 

8,487

 

8.44

%

 

 

413,267

 

 

8,889

 

8.56

%

Total interest-bearing liabilities

 

17,704,286

 

 

131,949

 

2.96

%

 

 

17,612,934

 

 

129,215

 

2.94

%

 

 

17,304,569

 

 

138,821

 

3.19

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-Interest Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing deposits

 

3,725,645

 

 

 

 

 

 

3,700,132

 

 

 

 

 

 

3,741,160

 

 

 

 

Other non-interest bearing liabilities

 

349,945

 

 

 

 

 

 

352,400

 

 

 

 

 

 

541,839

 

 

 

 

Total non-interest bearing liabilities

 

4,075,590

 

 

 

 

 

 

4,052,532

 

 

 

 

 

 

4,282,999

 

 

 

 

Total liabilities

 

21,779,876

 

 

 

 

 

 

21,665,466

 

 

 

 

 

 

21,587,568

 

 

 

 

Stockholders' equity

 

2,738,414

 

 

 

 

 

 

2,684,342

 

 

 

 

 

 

2,660,470

 

 

 

 

Total liabilities and stockholders' equity

$

24,518,290

 

 

 

 

 

$

24,349,808

 

 

 

 

 

$

24,248,038

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

$

194,332

 

 

 

 

 

$

187,093

 

 

 

 

 

$

183,701

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest rate spread

 

 

 

 

2.80

%

 

 

 

 

 

2.74

%

 

 

 

 

 

2.65

%

Net interest-earning assets

$

4,787,779

 

 

 

 

 

$

4,716,296

 

 

 

 

 

$

4,504,657

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin(3)

 

 

 

 

3.43

%

 

 

 

 

 

3.36

%

 

 

 

 

 

3.31

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of interest-earning assets to total interest-bearing liabilities

1.27x

 

 

 

 

 

1.27x

 

 

 

 

 

1.26x

 

 

 

 


 

 

(1)

 

Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses.

(2)

 

Average outstanding balances are net of the allowance for loan losses, deferred loan fees and expenses, loan premiums and discounts and include non-accrual loans.

(3)

 

Annualized net interest income divided by average interest-earning assets.

 

 

 


 

The following table summarizes the quarterly net interest margin for the previous five quarters.

 

9/30/25

 

6/30/25

 

3/31/25

 

12/31/24

 

9/30/24

 

3rd Qtr.

 

2nd Qtr.

 

1st Qtr.

 

4th Qtr.

 

3rd Qtr.

Interest-Earning Assets:

 

 

 

 

 

 

 

 

 

Securities

3.89

%

 

3.81

%

 

3.73

%

 

3.55

%

 

3.58

%

Net loans

6.09

%

 

6.01

%

 

5.95

%

 

5.99

%

 

6.21

%

Total interest-earning assets

5.76

%

 

5.68

%

 

5.63

%

 

5.66

%

 

5.84

%

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Liabilities:

 

 

 

 

 

 

 

 

 

Deposits

2.67

%

 

2.62

%

 

2.64

%

 

2.81

%

 

2.96

%

Borrowings

3.96

%

 

3.94

%

 

3.76

%

 

3.64

%

 

3.73

%

Total interest-bearing liabilities

2.96

%

 

2.94

%

 

2.90

%

 

3.03

%

 

3.19

%

 

 

 

 

 

 

 

 

 

 

Interest rate spread

2.80

%

 

2.74

%

 

2.73

%

 

2.63

%

 

2.65

%

Net interest margin

3.43

%

 

3.36

%

 

3.34

%

 

3.28

%

 

3.31

%

 

 

 

 

 

 

 

 

 

 

Ratio of interest-earning assets to interest-bearing liabilities

1.27x

 

1.27x

 

1.27x

 

1.27x

 

1.26x

 

 

 

 

 

 

 

 

 

 


 

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY

Net Interest Margin Analysis

Average Year to Date Balances

(Dollars in Thousands) (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2025

 

September 30, 2024

 

Average

 

 

 

Average

 

Average

 

 

 

Average

 

Balance

 

Interest

 

Yield/Cost

 

Balance

 

Interest

 

Yield/Cost

Interest-Earning Assets:

 

 

 

 

 

 

 

 

 

 

 

Deposits

$

78,434

 

$

2,227

 

4.21

%

 

$

39,280

 

$

5,466

 

5.38

%

Available for sale debt securities

 

2,952,923

 

 

87,530

 

3.95

%

 

 

2,189,671

 

 

52,277

 

3.18

%

Held to maturity debt securities, net(1)

 

311,507

 

 

5,859

 

2.51

%

 

 

350,529

 

 

6,761

 

2.57

%

Equity securities, at fair value

 

19,294

 

 

469

 

3.24

%

 

 

10,050

 

 

276

 

3.67

%

Total securities

 

3,283,724

 

 

93,858

 

3.81

%

 

 

2,550,250

 

 

59,314

 

3.10

%

Federal Home Loan Bank stock

 

119,503

 

 

6,667

 

7.48

%

 

 

84,845

 

 

6,145

 

9.66

%

Net loans:(2)

 

 

 

 

 

 

 

 

 

 

 

Total mortgage loans

 

13,362,561

 

 

577,097

 

5.77

%

 

 

10,682,974

 

 

461,632

 

5.70

%

Total commercial loans

 

4,803,599

 

 

236,616

 

6.59

%

 

 

3,487,600

 

 

175,815

 

6.69

%

Total consumer loans

 

609,979

 

 

31,470

 

6.90

%

 

 

460,497

 

 

25,820

 

7.49

%

Total net loans

 

18,776,139

 

 

845,183

 

6.02

%

 

 

14,631,071

 

 

663,267

 

5.99

%

Total interest-earning assets

$

22,257,800

 

$

947,935

 

5.69

%

 

$

17,305,446

 

$

734,192

 

5.61

%

 

 

 

 

 

 

 

 

 

 

 

 

Non-Interest Earning Assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

146,568

 

 

 

 

 

 

229,336

 

 

 

 

Other assets

 

1,908,122

 

 

 

 

 

 

1,663,331

 

 

 

 

Total assets

$

24,312,490

 

 

 

 

 

$

19,198,113

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

$

10,084,036

 

$

200,819

 

2.66

%

 

$

7,931,251

 

$

174,609

 

2.94

%

Savings deposits

 

1,641,821

 

 

2,720

 

0.22

%

 

 

1,444,135

 

 

2,476

 

0.23

%

Time deposits

 

3,228,399

 

 

92,232

 

3.82

%

 

 

2,091,806

 

 

66,517

 

4.25

%

Total deposits

 

14,954,256

 

 

295,771

 

2.64

%

 

 

11,467,192

 

 

243,602

 

2.84

%

Borrowed funds

 

2,182,319

 

 

63,555

 

3.89

%

 

 

2,074,958

 

 

57,871

 

3.73

%

Subordinated debentures

 

403,299

 

 

25,455

 

8.44

%

 

 

215,745

 

 

13,842

 

8.57

%

Total interest-bearing liabilities

$

17,539,874

 

$

384,781

 

2.93

%

 

$

13,757,895

 

$

315,315

 

3.06

%

 

 

 

 

 

 

 

 

 

 

 

 

Non-Interest Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing deposits

 

3,715,008

 

 

 

 

 

 

2,896,453

 

 

 

 

Other non-interest bearing liabilities

 

370,224

 

 

 

 

 

 

379,909

 

 

 

 

Total non-interest bearing liabilities

 

4,085,232

 

 

 

 

 

 

3,276,362

 

 

 

 

Total liabilities

 

21,625,106

 

 

 

 

 

 

17,034,257

 

 

 

 

Stockholders' equity

 

2,687,384

 

 

 

 

 

 

2,163,856

 

 

 

 

Total liabilities and stockholders' equity

$

24,312,490

 

 

 

 

 

$

19,198,113

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

$

563,154

 

 

 

 

 

$

418,877

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest rate spread

 

 

 

 

2.76

%

 

 

 

 

 

2.55

%

Net interest-earning assets

$

4,717,926

 

 

 

 

 

$

3,547,551

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin(3)

 

 

 

 

3.38

%

 

 

 

 

 

3.18

%

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of interest-earning assets to total interest-bearing liabilities

1.27x

 

 

 

 

 

1.26x

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses.

(2) Average outstanding balance are net of the allowance for loan losses, deferred loan fees and expenses, loan premium and discounts and include non-accrual loans.

(3) Annualized net interest income divided by average interest-earning assets.

 


 

The following table summarizes the year-to-date net interest margin for the previous three years.

 

 

 

 

 

 

 

Nine Months Ended

 

September 30, 2025

 

September 30, 2024

 

September 30, 2023

Interest-Earning Assets:

 

 

 

 

 

Securities

3.81

%

 

3.10

%

 

2.57

%

Net loans

6.02

%

 

5.99

%

 

5.25

%

Total interest-earning assets

5.69

%

 

5.61

%

 

4.76

%

 

 

 

 

 

 

Interest-Bearing Liabilities:

 

 

 

 

 

Deposits

2.64

%

 

2.84

%

 

1.82

%

Borrowings

3.89

%

 

3.73

%

 

3.29

%

Total interest-bearing liabilities

2.93

%

 

3.06

%

 

2.07

%

 

 

 

 

 

 

Interest rate spread

2.76

%

 

2.55

%

 

2.69

%

Net interest margin

3.38

%

 

3.18

%

 

3.19

%

 

 

 

 

 

 

Ratio of interest-earning assets to interest-bearing liabilities

1.27x

 

1.26x

 

1.32x