Provident Financial Services, Inc. Reports Second Quarter Earnings

Rhea-AI Summary

Provident Financial Services (NYSE:PFS) reported strong Q2 2025 financial results with net income of $72.0 million, or $0.55 per share, compared to $64.0 million in Q1 2025 and a net loss of $11.5 million in Q2 2024.

The company achieved record revenue of $214.2 million, including record net interest income of $187.1 million. The net interest margin increased to 3.36%, while the C&I loan portfolio grew by 16.26% annualized to $4.69 billion. Asset quality remained strong with non-performing assets at 0.44% and minimal net charge-offs of 0.03%.

Notable improvements include a $2.7 million benefit to credit loss provisions, increased efficiency with a 53.52% ratio, and tangible book value growth of 3.2% to $14.60 per share.

Positive

• Record quarterly revenue of $214.2 million with record net interest income of $187.1 million
• Strong C&I loan portfolio growth of 16.26% annualized to $4.69 billion
• Net interest margin improved to 3.36%, up 2 basis points from previous quarter
• Asset quality strengthened with non-performing assets at 0.44% and minimal charge-offs
• Tangible book value per share increased 3.2% to $14.60
• $2.7 million benefit to credit loss provisions indicating improved credit outlook

Negative

• Average cost of borrowed funds increased to 3.94% from 3.76% in previous quarter
• Wealth management income decreased $380,000 to $6.9 million due to lower assets under management
• Insurance agency income declined $709,000 to $4.9 million quarter-over-quarter

Insights

Financial Analyst

Provident posts impressive Q2 results with record revenue, improved efficiency, and strong loan growth after successful Lakeland integration.

Provident Financial Services delivered record quarterly revenue of $214.2 million and net income of $72 million ($0.55 EPS) in Q2 2025, representing a 12.5% increase from Q1's $64 million ($0.49 EPS) and a dramatic turnaround from last year's Q2 loss of $11.5 million.

The bank's performance reflects successful integration of its Lakeland acquisition, with annualized ROA reaching 1.19% and ROE of 10.76%, both improvements over Q1. The efficiency ratio improved to 53.52% from 54.43% in Q1, indicating better operational performance.

Net interest income increased to $187.1 million, up $5.4 million from Q1, driven by loan growth and favorable repricing. The net interest margin expanded 2 basis points to 3.36%, with interest-earning assets yielding 5.68%. Core margin excluding purchase accounting effects was 2.93%.

Commercial lending showed robust growth with C&I loans increasing 16.26% annualized to $4.69 billion, while the total commercial portfolio grew 7.98% annualized to $16.51 billion. The loan pipeline remains strong at $2.59 billion with an average rate of 6.30%.

Asset quality metrics improved significantly, with the bank recording a $2.7 million benefit to provision for credit losses versus a $325,000 provision in Q1. Non-performing assets to total assets improved to 0.44%, while net charge-offs were minimal at 0.03% of average loans. The allowance for credit losses decreased to 0.98% of loans from 1.02% in Q1.

Tangible book value per share increased 3.2% to $14.60, with the tangible common equity ratio improving to 8.03%. This continued capital strengthening provides flexibility for future growth opportunities while supporting the current dividend.

The year-over-year comparison highlights the transformative impact of the Lakeland merger, with Q2 2025 net interest income 32.2% higher than Q2 2024's $141.5 million. The acquisition has significantly expanded the bank's scale while enhancing profitability metrics.

ISELIN, N.J., July 24, 2025 (GLOBE NEWSWIRE) -- Provident Financial Services, Inc. (NYSE:PFS) (the “Company”) reported net income of $72.0 million, or $0.55 per basic and diluted share for the three months ended June 30, 2025, compared to $64.0 million, or $0.49 per basic and diluted share, for the three months ended March 31, 2025 and a net loss of $11.5 million, or $(0.11) per basic and diluted share, for the three months ended June 30, 2024. For the six months ended June 30, 2025, net income totaled $136.0 million, or $1.04 per basic and diluted share, compared to $20.6 million, or $0.23 per basic and diluted share, for the six months ended June 30, 2024. While there were no transaction costs related to our merger with Lakeland Bancorp, Inc. (“Lakeland”) for the 2025 period, these costs totaled $79.0 million and $81.2 million, including an initial Current Expected Credit Loss ("CECL") provision for credit losses recorded as part of the Lakeland merger, for the three and six months ended June 30, 2024, respectively.

Anthony J. Labozzetta, President and Chief Executive Officer commented, “Provident's performance this quarter was impressive and I am very proud of the team's continued hard work and dedication to excellence. We achieved record revenues by growing earning assets and expanding margins, while improving operational efficiency and maintaining strong asset quality. We look forward to sustaining our positive momentum and continuing to grow our business.”

Performance Highlights for the Second Quarter of 2025

• Adjusted for a one-time write-down on a foreclosed property in the prior quarter, the Company's annualized adjusted returns on average assets, average equity and average tangible equity⁽¹⁾ were 1.19%, 10.76% and 16.79% for the quarter ended June 30, 2025, compared to 1.11%, 10.13% and 16.15% for the quarter ended March 31, 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 1.64%, 14.88% and 21.26% for the quarter ended June 30, 2025, compared to 1.61%, 14.63% and 21.18% for the quarter ended March 31, 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 of $214.2 million for the quarter ended June 30, 2025, comprised of record net interest income of $187.1 million and non-interest income of $27.1 million.
• Average interest-earning assets increased $383.8 million, or an annualized 7.0%, for the quarter ended June 30, 2025, versus the trailing quarter.
• The Company’s commercial and industrial ("C&I") loan portfolio, excluding mortgage warehouse lines, increased $182.7 million, or 16.26% annualized, to $4.69 billion as of June 30, 2025, from $4.51 billion as of March 31, 2025. Additionally, the Company's total commercial loan portfolio, including mortgage warehouse lines, commercial mortgage, multi-family and construction loans, increased $319.3 million, or 7.98% annualized, to $16.51 billion as of June 30, 2025, from $16.19 billion as of March 31, 2025.
• As of June 30, 2025, the Company's loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $2.59 billion, with a weighted average interest rate of 6.30%, compared to $2.77 billion, with a weighted average interest rate of 6.31%, as of March 31, 2025.
• The net interest margin increased two basis points to 3.36% for the quarter ended June 30, 2025, from 3.34% for the trailing quarter, while the core net interest margin, which excludes the impact of purchase accounting accretion and amortization, decreased one basis point from the trailing quarter to 2.93%. The weighted average yield on interest-earning assets for the quarter ended June 30, 2025 increased five basis points to 5.68%, compared to the trailing quarter, while the weighted average cost of interest-bearing liabilities for the quarter ended June 30, 2025 increased four basis points to 2.94%, compared to the trailing quarter.
• The Company recorded a $2.7 million benefit to the provision for credit losses on loans for the quarter ended June 30, 2025, compared to a $325,000 provision for the trailing quarter. Non-performing assets to total assets improved to 0.44% as of June 30, 2025, and annualized net charge-offs were 0.03% of loans for the quarter. The allowance for credit losses as a percentage of loans decreased to 0.98% as of June 30, 2025, from 1.02% as of March 31, 2025.
• Tangible book value per share ⁽³⁾ increased 3.2% to $14.60 and our tangible common equity ratio increased 13 basis points to 8.03% as of June 30, 2025. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 13 of the earnings release.
  

Results of Operations

Three months ended June 30, 2025 compared to the three months ended March 31, 2025

For the three months ended June 30, 2025, the Company reported net income of $72.0 million, or $0.55 per basic and diluted share, compared to net income of $64.0 million, or $0.49 per basic and diluted share, for the three months ended March 31, 2025.

Net Interest Income and Net Interest Margin

Net interest income increased $5.4 million to $187.1 million for the three months ended June 30, 2025, from $181.7 million for the trailing quarter. The increase in net interest income was primarily due to originations of new loans at current market rates and the favorable repricing of adjustable rate loans, partially offset by a decrease in average lower-costing deposits and an increase in average borrowings.

The Company’s net interest margin increased two basis points to 3.36% for the quarter ended June 30, 2025, from 3.34% for the trailing quarter. The weighted average yield on interest-earning assets for the quarter ended June 30, 2025 increased five basis points to 5.68%, compared to the trailing quarter. The weighted average cost of interest-bearing liabilities for the quarter ended June 30, 2025 increased four basis points from the trailing quarter, to 2.94%. The average cost of interest-bearing deposits for the quarter ended June 30, 2025 decreased two basis points to 2.62%, compared to 2.64% for the trailing quarter. The average cost of total deposits, including non-interest-bearing deposits, was 2.10% for the quarter ended June 30, 2025, compared to 2.11% for the trailing quarter. The average cost of borrowed funds for the quarter ended June 30, 2025 was 3.94%, compared to 3.76% for the quarter ended March 31, 2025.

Provision for Credit Losses on Loans

For the quarter ended June 30, 2025, the Company recorded a $2.7 million benefit to the provision for credit losses on loans, compared with a provision for credit losses on loans of $325,000 for the quarter ended March 31, 2025. The benefit to the provision for credit losses on loans in the quarter was primarily attributable to an improved economic forecast and an overall improvement in the Company's asset quality, partially offset by an increase in specific reserves required on individually analyzed loans. For the three months ended June 30, 2025, net charge-offs totaled $1.2 million, or an annualized three basis points of average loans, compared with net charge-offs of $2.0 million, or an annualized four basis points of average loans for the trailing quarter.

Non-Interest Income and Expense

For the three months ended June 30, 2025, non-interest income totaled $27.1 million, an increase of $45,000, compared to the trailing quarter. Fee income increased $1.1 million to $10.7 million for the three months ended June 30, 2025, compared to the trailing quarter, primarily due to increases in deposit related and loan prepayment fee income, combined with an increase in non-deposit investment fee income. BOLI income increased $493,000 for the three months ended June 30, 2025, compared to the trailing quarter, primarily due to greater equity valuations and an increase in benefit claims recognized. Partially offsetting these increases in non-interest income, insurance agency income decreased $709,000 to $4.9 million for the three months ended June 30, 2025, compared to the trailing quarter, mainly due to the receipt of contingent commissions in the prior quarter, partially offset by additional business activity in the current quarter. Wealth management income decreased $380,000 to $6.9 million for the three months ended June 30, 2025, compared to the trailing quarter, mainly due to a decrease in the average market value of assets under management during the period. Additionally, other income decreased $353,000 to $1.9 million for the three months ended June 30, 2025, compared to the trailing quarter, primarily due to a decrease in profit on fixed asset sales.

Non-interest expense totaled $114.6 million for the three months ended June 30, 2025, a decrease of $1.7 million, compared to $116.3 million for the trailing quarter. Other operating expenses decreased $1.9 million to $14.5 million for the three months ended June 30, 2025, compared to $16.4 million for the trailing quarter, primarily due to a prior quarter $2.7 million write-down on a foreclosed property, while net occupancy expense decreased $916,000 to $13.0 million for the three months ended June 30, 2025, compared to $13.9 million for the trailing quarter, primarily due to decreases in snow removal, utilities and other maintenance costs. Partially offsetting these decreases in non-interest expense, compensation and benefits expense increased $883,000 to $63.2 million for the three months ended June 30, 2025, compared to $62.4 million for the trailing quarter. The increase in compensation and benefits expense was primarily attributable to an increase in salary expense, primarily due to additional business days in the current quarter compared to the trailing quarter.

The Company’s annualized adjusted non-interest expense as a percentage of average assets⁽⁵⁾ totaled 1.89% for the quarter ended June 30, 2025, compared to 1.92% 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 53.52% for the three months ended June 30, 2025, compared to 54.43% for the trailing quarter.

Income Tax Expense

For the three months ended June 30, 2025, the Company's income tax expense was $30.5 million with an effective tax rate of 29.7%, compared to income tax expense of $27.8 million with an effective tax rate of 30.3%, for the trailing quarter. The increase in tax expense for the three months ended June 30, 2025 compared with the trailing quarter was largely due to an increase in taxable income in the current quarter, while the decrease in tax rate was primarily due to a discrete item related to stock-based compensation in the prior quarter.

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

For the three months ended June 30, 2025, the Company reported net income of $72.0 million, or $0.55 per basic and diluted share, compared to a net loss of $11.5 million, or $(0.11) per basic and diluted share, for the three months ended June 30, 2024. While there were no transaction costs related to our merger with Lakeland for the 2025 period, these costs totaled $79.0 million, including an initial CECL provision for credit losses recorded as part of the Lakeland merger, for the three months ended June 30, 2024.

Net Interest Income and Net Interest Margin

Net interest income increased $45.6 million to $187.1 million for the three months ended June 30, 2025, from $141.5 million for same period in 2024. The increase in net interest income was largely driven by growth in average earning assets and net assets added in the May 16, 2024 acquisition of Lakeland and related accretion of purchase accounting adjustments.

The Company’s net interest margin increased 15 basis points to 3.36% for the quarter ended June 30, 2025, from 3.21% for the same period last year. The weighted average yield on interest-earning assets for the quarter ended June 30, 2025 increased one basis point to 5.68%, compared to 5.67% for the quarter ended June 30, 2024. The weighted average cost of interest-bearing liabilities decreased 15 basis points for the quarter ended June 30, 2025 to 2.94%, compared to 3.09% for the second quarter of 2024. The average cost of interest-bearing deposits for the quarter ended June 30, 2025 was 2.62%, compared to 2.84% for the same period last year. Average non-interest-bearing demand deposits increased $833.2 million to $3.70 billion for the quarter ended June 30, 2025, compared to $2.87 billion for the quarter ended June 30, 2024. The average cost of total deposits, including non-interest-bearing deposits, was 2.10% for the quarter ended June 30, 2025, compared with 2.24% for the quarter ended June 30, 2024. The average cost of borrowed funds for the quarter ended June 30, 2025 was 3.94%, compared to 3.83% for the same period last year.

Provision for Credit Losses on Loans

For the quarter ended June 30, 2025, the Company recorded a $2.7 million benefit to the provision for credit losses on loans, compared with a $66.1 million provision for credit losses on loans for the quarter ended June 30, 2024. The benefit to the provision for credit losses on loans in the quarter was primarily attributable to an improved economic forecast and an overall improvement in the Company's asset quality, partially offset by an increase in specific reserves required on individually analyzed loans. The provision for credit losses on loans for the prior year quarter was primarily attributable to an initial CECL provision for credit losses of $60.1 million, recorded as part of the Lakeland merger. For the three months ended June 30, 2025, net charge-offs totaled $1.2 million, or an annualized three basis points of average loans, compared with net charge-offs of $2.7 million, or an annualized seven basis points of average loans, for the same period last year.

Non-Interest Income and Expense

Non-interest income totaled $27.1 million for the quarter ended June 30, 2025, an increase of $4.8 million, compared to the same period in 2024. Net gain on securities transactions increased $3.0 million for the three months ended June 30, 2025, compared to the same period in 2024, 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. Fee income increased $2.0 million to $10.7 million for the three months ended June 30, 2025, compared to the prior year quarter, primarily due to increases in deposit fee income, debit card related fee income and loan related fee income, resulting from the Lakeland merger. Additionally, other income increased $895,000 to $1.9 million for the three months ended June 30, 2025, compared to the quarter ended June 30, 2024, primarily due to increases in gains on the sale of SBA loans, while insurance agency income increased $454,000 to $4.9 million for the three months ended June 30, 2025, compared to the quarter ended June 30, 2024, largely due to an increase in business activity. Partially offsetting these increases to non-interest income, wealth management fees decreased $821,000 to $6.9 million for the three months ended June 30, 2025, compared to the quarter ended June 30, 2024, mainly due to a decrease in the average market value of assets under management during the period, while BOLI income decreased $738,000 to $2.6 million for the three months ended June 30, 2025, compared to the prior year quarter, primarily due to a decrease in benefit claims recognized.

For the three months ended June 30, 2025, non-interest expense totaled $114.6 million, a decrease of $780,000, compared to the three months ended June 30, 2024. Merger-related expenses decreased $18.9 million for the three months ended June 30, 2025, compared to the same period in 2024. Partially offsetting the decrease in merger-related expenses, compensation and benefits expense increased $8.4 million to $63.2 million for the three months ended June 30, 2025, compared to $54.9 million for the same period in 2024, primarily attributable to the addition of Lakeland personnel. Other operating expenses increased $3.2 million to $14.5 million for the three months ended June 30, 2025, compared to $11.3 million for the same period in 2024, primarily due to the addition of Lakeland. Amortization of intangibles increased $3.0 million to $9.5 million for the three months ended June 30, 2025, compared to $6.5 million for the same period in 2024, largely due to core deposit intangible amortization related to Lakeland. Net occupancy expense increased $1.9 million to $13.0 million for three months ended June 30, 2025, compared to $11.1 million for the same period in 2024, primarily due to an increase in depreciation and maintenance expenses due to the addition of Lakeland. Data processing expenses increased $1.2 million to $9.6 million for three months ended June 30, 2025, compared to $8.4 million for the same period in 2024, primarily due to the addition of Lakeland.

The Company’s annualized adjusted non-interest expense as a percentage of average assets⁽⁵⁾ was 1.89% for the quarter ended June 30, 2025, compared to 2.02% 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⁾ was 53.52% for the three months ended June 30, 2025 compared to 57.86% for the same respective period in 2024.

Income Tax Expense

For the three months ended June 30, 2025, the Company's income tax expense was $30.5 million with an effective tax rate of 29.7%, compared with an income tax benefit of $9.8 million for the three months ended June 30, 2024. The increase in tax expense for the three months ended June 30, 2025, compared with the same period last year was largely due to an increase in taxable income in the quarter. The prior year income tax benefit was largely due to a $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 in the quarter, effective January 1, 2024, combined with a decrease in taxable income in the prior year quarter as a result of additional expenses from the Lakeland merger.

Six months ended June 30, 2025 compared to the six months ended June 30, 2024

For the six months ended June 30, 2025, net income totaled $136.0 million, or $1.04 per basic and diluted share, compared to net income of $20.6 million, or $0.23 per basic and diluted share, for the six months ended June 30, 2024. While there were no transaction costs related to our merger with Lakeland for the 2025 period, those costs totaled $81.2 million, including an initial CECL provision for credit losses recorded as part of the Lakeland merger, for the six months ended June 30, 2024.

Net Interest Income and Net Interest Margin

Net interest income increased $133.6 million to $368.8 million for the six months ended June 30, 2025, from $235.2 million for same period in 2024. Net interest income for the six months ended June 30, 2025 was largely driven by growth in average earning assets and net assets added in the May 16, 2024 acquisition of Lakeland and related accretion of purchase accounting adjustments.

For the six months ended June 30, 2025, the net interest margin increased 27 basis points to 3.35%, compared to 3.08% for the six months ended June 30, 2024. The weighted average yield on interest earning assets increased 22 basis points to 5.65% for the six months ended June 30, 2025, compared to 5.43% for the six months ended June 30, 2024, while the weighted average cost of interest-bearing liabilities decreased five basis points to 2.92% for the six months ended June 30, 2025, compared to 2.97% for the same period last year. The average cost of interest-bearing deposits decreased 11 basis points to 2.63% for the six months ended June 30, 2025, compared to 2.74% for the same period last year. Average non-interest-bearing demand deposits increased $1.24 billion to $3.71 billion for the six months ended June 30, 2025, compared with $2.47 billion for the six months ended June 30, 2024. The average cost of total deposits, including non-interest-bearing deposits, was 2.10% for the six months ended June 30, 2025, compared with 2.19% for the six months ended June 30, 2024. The average cost of borrowings for the six months ended June 30, 2025 was 3.86%, compared to 3.75% for the same period last year.

Provision for Credit Losses on Loans

For the six months ended June 30, 2025, the Company recorded a $2.3 million benefit to the provision for credit losses on loans, compared with a provision for credit losses on loans of $66.3 million for the six months ended June 30, 2024. The benefit to the provision for credit losses on loans for the six months ended June 30, 2025 was primarily attributable to an improved economic forecast and an overall improvement in the Company's asset quality, partially offset by an increase in specific reserves required on individually analyzed loans. The provision for credit losses on loans for the prior year period was primarily attributable to an initial CECL provision for credit losses of $60.1 million, recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. For the six months ended June 30, 2025, net charge-offs totaled $3.2 million or an annualized three basis points of average loans, compared with net charge-offs of $4.6 million, or an annualized four basis points of average loans, for the six months ended June 30, 2024.

Non-Interest Income and Expense

For the six months ended June 30, 2025, non-interest income totaled $54.1 million, an increase of $11.0 million compared to the same period in 2024. Fee income increased $5.8 million to $20.4 million for the six months ended June 30, 2025, compared to the same period in 2024, primarily due to increases in deposit fee income, debit and credit card related fee income and loan related fee income resulting from the Lakeland merger. Net gains on securities transactions increased $3.1 million for the six months ended June 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 $2.3 million to $4.1 million for the six months ended June 30, 2025, compared to $1.8 million for the same period in 2024, primarily due to an increase in gains on sales of SBA and mortgage loans. Additionally, insurance agency income increased $1.3 million to $10.6 million for the six months ended June 30, 2025, compared to $9.3 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, wealth management income decreased $982,000 to $14.3 million for the six months ended June 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, while BOLI income decreased $462,000 to $4.7 million for the six months ended June 30, 2025, compared to the same period in 2024, primarily due to a decrease in benefit claims recognized, combined with lower equity valuations.

Non-interest expense totaled $230.9 million for the six months ended June 30, 2025, an increase of $43.7 million, compared to $187.2 million for the six months ended June 30, 2024. Compensation and benefits expense increased $30.7 million to $125.6 million for the six months ended June 30, 2025, compared to $94.9 million for the six months ended June 30, 2024, primarily attributable to the addition of Lakeland personnel. Amortization of intangibles increased $11.8 million to $19.0 million for the six months ended June 30, 2025, compared to $7.2 million for the six months ended June 30, 2024, largely due to core deposit intangible amortization related to Lakeland. Other operating expenses increased $9.3 million to $30.9 million for the three months ended June 30, 2025, compared to $21.6 million for the same period in 2024, primarily due to a $2.7 million write-down on a foreclosed property, combined with the addition of Lakeland. Net occupancy expense increased $7.3 million to $26.9 million for the six months ended June 30, 2025, compared to the same period in 2024, primarily due to increases in depreciation and maintenance expense related to the addition of Lakeland. Data processing expense increased $4.0 million to $19.2 million for the six months ended June 30, 2025, compared to $15.2 million for the six months ended June 30, 2024, primarily due to the addition of Lakeland, while FDIC insurance increased $1.4 million to $6.7 million for the six months ended June 30, 2025, primarily due to the addition of Lakeland. Partially offsetting these increases to non-interest expense, merger-related expenses decreased $21.1 million for the six months ended June 30, 2025.

Income Tax Expense

For the six months ended June 30, 2025, the Company's income tax expense was $58.3 million with an effective tax rate of 30.0%, compared with income tax expense of $1.1 million for the six months ended June 30, 2024. The increase in tax expense for the six months ended June 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. The prior year income tax expense was favorably impacted by the Lakeland merger.

Asset Quality

The Company’s total non-performing loans as of June 30, 2025 were $107.2 million, or 0.56% of total loans held for investment, compared to $103.2 million, or 0.54% of total loans as of March 31, 2025 and $72.1 million, or 0.37% of total loans as of December 31, 2024. The $3.9 million increase in non-performing loans as of June 30, 2025, compared to the trailing quarter, consisted of a $3.1 million increase in non-performing commercial loans, a $2.0 million increase in non-performing residential mortgage loans and a $195,000 increase in non-performing consumer loans, partially offset by a $1.2 million decrease in non-performing multi-family loans, a $103,000 decrease in non-performing commercial mortgage loans and a $28,000 decrease in non-performing construction loans. As of June 30, 2025, impaired loans totaled $92.7 million with related specific reserves of $11.4 million, compared with impaired loans totaling $86.1 million with related specific reserves of $7.9 million as of March 31, 2025. As of December 31, 2024, impaired loans totaled $55.4 million with related specific reserves of $7.5 million.

As of June 30, 2025, the Company’s allowance for credit losses related to the loan portfolio was 0.98% of total loans, compared to 1.02% and 1.04% as of March 31, 2025 and December 31, 2024, respectively. The allowance for credit losses decreased $5.6 million to $187.9 million as of June 30, 2025, from $193.4 million as of December 31, 2024. The decrease in the allowance for credit losses on loans as of June 30, 2025 compared to December 31, 2024 was due to a $2.3 million benefit to the provision for credit losses on loans, combined with net charge-offs of $3.2 million.

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.

		June 30, 2025						March 31, 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		1		$	129			8		$	13,696			7		$	8,538
Multi-family mortgage loans		—			—			1			7,433			—			—
Construction loans		—			—			—			—			—			—
Residential mortgage loans		20			5,541			27			6,905			22			6,388
Total mortgage loans		21			5,670			36			28,034			29			14,926
Commercial loans		4			997			23			11,372			9			3,026
Consumer loans		30			1,592			22			1,604			47			3,152
Total 30 to 59 days past due		55		$	8,259			95		$	42,060			85		$	21,104
60 to 89 days past due:
Commercial mortgage loans		1		$	347			2		$	196			4		$	3,954
Multi-family mortgage loans		1			431			—			—			—			—
Construction loans		—			—			—			—			—			—
Residential mortgage loans		16			3,816			18			5,009			17			5,049
Total mortgage loans		18			4,594			20			5,205			21			9,003
Commercial loans		13			4,389			8			1,955			3			1,117
Consumer loans		9			699			12			854			15			856
Total 60 to 89 days past due		40			9,682			47			8,908			39			10,976
Total accruing past due loans		95		$	17,941			142		$	50,968			124		$	32,080
Non-accrual:
Commercial mortgage loans		15		$	42,828			18		$	42,931			17		$	20,883
Multi-family mortgage loans		3			6,143			5			7,294			6			7,498
Construction loans		3			18,901			3			18,929			2			13,246
Residential mortgage loans		25			7,209			22			5,246			23			4,535
Total mortgage loans		46			75,081			48			74,400			48			46,162
Commercial loans		34			30,531			32			23,580			32			21,892
Consumer loans		21			1,547			19			1,352			23			1,656
Total non-accrual loans		101		$	107,159			99		$	99,332			103		$	69,710
Non-performing loans to total loans held for investment					0.56	%					0.53	%					0.37	%
Allowance for loan losses to total non-performing loans					175.32	%					185.78	%					268.43	%
Allowance for loan losses to total loans held for investment					0.98	%					1.02	%					1.04	%

There were no non-accrual or past due loans held for sale as of June 30. 2025. As of March 31, 2025 and December 31, 2024, total non-accrual loans held for sale, which are not in the tables above, totaled $3.9 million and $2.4 million, respectively. Additionally, as of March 31, 2025 and December 31, 2024, total past due loans held for sale, including non-accrual loans held for sale, totaled $5.8 million and $4.8 million, respectively.

As of June 30, 2025 and December 31, 2024, the Company held foreclosed assets of $1.0 million and $9.5 million, respectively. During the six months ended June 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. Foreclosed assets as of June 30, 2025 were comprised of one commercial property. Total non-performing assets as of June 30, 2025 increased $26.6 million to $108.1 million, or 0.44% of total assets, from $81.5 million, or 0.34% of total assets at December 31, 2024.

Balance Sheet Summary

Total assets as of June 30, 2025 were $24.55 billion, a $495.5 million increase from December 31, 2024. The increase in total assets was primarily due to a $445.5 million increase in loans held for investment and a $246.5 million increase in total investments, partially offset by a $155.5 million decrease in loans held for sale, and decreases in intangibles and other assets.

The Company’s loans held for investment portfolio totaled $19.10 billion as of June 30, 2025 and $18.66 billion as of December 31, 2024. The loan portfolio consisted of the following:

	June 30, 2025				March 31, 2025				December 31, 2024
	(Dollars in thousands)
Mortgage loans:
Commercial	$	7,313,904			$	7,295,651			$	7,228,078
Multi-family		3,517,509				3,458,190				3,382,933
Construction		751,914				756,356				823,503
Residential		1,985,355				1,994,404				2,010,637
Total mortgage loans		13,568,682				13,504,601				13,445,151
Commercial loans		4,688,888				4,506,215				4,447,672
Mortgage warehouse lines		240,134				176,687				160,928
Consumer loans		617,190				613,453				613,819
Total gross loans		19,114,894				18,800,956				18,667,570
Premiums on purchased loans		1,308				1,337				1,338
Net deferred fees and unearned discounts		(11,372	)			(10,922	)			(9,538	)
Total loans	$	19,104,830			$	18,791,371			$	18,659,370

During the three months ended June 30, 2025, the loans held for investment portfolio had net increases of $182.7 million of commercial loans, $63.4 million of mortgage warehouse lines, $59.3 million of multi-family loans and $18.3 million of commercial mortgage loans, partially offset by net decreases of $9.0 million of residential mortgage loans, $4.4 million of construction loans and $3.7 million of consumer loans. Total commercial loans, including mortgage warehouse lines, commercial mortgage, multi-family and construction loans, represented 86.4% of the loan portfolio as of June 30, 2025, compared to 85.9% as of December 31, 2024.

For the six months ended June 30, 2025, loan funding, including advances on lines of credit, totaled $4.30 billion, compared with $2.53 billion for the same period in 2024.

As of June 30, 2025, the Company’s unfunded loan commitments totaled $3.74 billion, including commitments of $2.30 billion in commercial loans, $511.9 million in construction loans and $212.7 million in commercial mortgage loans. Unfunded loan commitments as of December 31, 2024 and June 30, 2024 were $2.73 billion and $3.01 billion, respectively.

The loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $2.59 billion as of June 30, 2025, compared to $1.79 billion and $1.67 billion as of December 31, 2024 and June 30, 2024, respectively.

Total investment securities were $3.47 billion as of June 30, 2025, a $246.5 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 $84.7 million during the six months ended June 30, 2025, to $18.71 billion. Total time deposits increased $99.3 million to $3.27 billion as of June 30, 2025, while total savings and demand deposit accounts decreased $14.6 million to $15.44 billion as of June 30, 2025. The increase in time deposits consisted of a $108.1 million increase in brokered time deposits, partially offset by an $8.8 million decrease in retail time deposits. The decrease in savings and demand deposits was largely attributable to a $50.7 million decrease in savings deposits and a $36.8 million decrease in non-interest bearing demand deposits, partially offset by a $52.2 million increase in money market deposits and a $20.7 million increase in interest bearing demand deposits.

Borrowed funds increased $354.2 million during the six months ended June 30, 2025, to $2.37 billion. Borrowed funds represented 9.7% of total assets as of June 30, 2025, an increase from 8.4% as of December 31, 2024.

Stockholders’ equity increased $106.3 million during the six months ended June 30, 2025, to $2.71 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 six months ended June 30, 2025, common stock repurchases totaled 55,826 shares at an average cost of $17.83 per share and 156,570 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 June 30, 2025, approximately 816,000 shares remained eligible for repurchase under the current stock repurchase authorization. Book value per share and tangible book value per share(1) as of June 30, 2025 were $20.73 and $14.60, 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, July 24, 2025 at 2:00 p.m. Eastern Time to discuss the Company’s financial results for the quarter ended June 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 2nd 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, the effects of the recent turmoil in the banking industry, 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 potential 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 Six Months Ended
	June 30,				March 31,				June 30,				June 30,				June 30,
		2025				2025				2024				2025				2024
Statement of Income
Net interest income	$	187,094			$	181,728			$	141,506			$	368,822			$	235,176
Provision (benefit) charge for credit losses		(2,888	)			638				69,705				(2,250	)			69,385
Non-interest income		27,075				27,030				22,275				54,105				43,081
Non-interest expense		114,614				116,267				115,394				230,881				187,221
Income (loss) before income tax expense		102,443				91,853				(21,318	)			194,296				21,651
Net income (loss)		71,981				64,028				(11,485	)			136,009				20,596
Diluted earnings per share	$	0.55			$	0.49			$	(0.11	)		$	1.04			$	0.23
Interest rate spread		2.74	%			2.73	%			2.58	%			2.73	%			2.46	%
Net interest margin		3.36	%			3.34	%			3.21	%			3.35	%			3.08	%
Profitability
Annualized return on average assets		1.19	%			1.08	%			(0.24)	%			1.13	%			0.25	%
Annualized adjusted return on average assets (1)		1.19	%			1.11	%			0.06	%			1.15	%			0.49	%
Annualized return on average equity		10.76	%			9.84	%			(2.17)	%			10.31	%			2.17	%
Annualized adjusted return on average equity (1)		10.76	%			10.13	%			0.53	%			10.45	%			4.28	%
Annualized return on average tangible equity (4)		16.79	%			15.73	%			(3.15)	%			16.27	%			3.06	%
Annualized adjusted return on average tangible equity (1)		16.79	%			16.15	%			0.001	%			16.48	%			6.27	%
Annualized adjusted non-interest expense to average assets (4)		1.89	%			1.92	%			2.02	%			1.92	%			2.01	%
Efficiency ratio (6)		53.52	%			54.43	%			57.86	%			54.60	%			59.06	%
Asset Quality
Non-accrual loans					$	103,224							$	107,159			$	67,868
90+ and still accruing						—								—				—
Non-performing loans						103,224								107,159				67,868
Foreclosed assets						6,755								963				11,119
Non-performing assets						109,979								108,122				78,987
Non-performing loans to total loans held for investment						0.53	%							0.56	%			0.36	%
Non-performing assets to total assets						0.45	%							0.44	%			0.33	%
Allowance for loan losses					$	191,770							$	187,871			$	188,331
Allowance for loan losses to total non-performing loans						185.78	%							175.32	%			277.50	%
Allowance for loan losses to total loans held for investment						1.02	%							0.98	%			1.00	%
Net loan charge-offs	$	1,249			$	1,987			$	2,680			$	3,236			$	4,622
Annualized net loan charge-offs to average total loans		0.03	%			0.04	%			0.07	%			0.03	%			0.07	%
Average Balance Sheet Data
Assets	$	24,349,808			$	24,049,318			$	19,197,041			$	24,200,393			$	16,645,404
Loans, net		18,827,305				18,590,877				14,649,413				18,709,743				12,659,202
Earning assets		22,329,230				21,946,053				17,385,819				22,138,700				15,093,217
Core deposits		15,222,027				15,497,343				12,257,244				15,358,925				10,693,244
Borrowings		2,490,379				1,918,069				2,158,193				2,205,805				2,049,587
Interest-bearing liabilities		17,612,934				17,297,892				13,856,039				17,456,284				11,965,072
Stockholders' equity		2,684,342				2,638,361				2,127,469				2,661,478				1,912,820
Average yield on interest-earning assets		5.68	%			5.63	%			5.67	%			5.65	%			5.43	%
Average cost of interest-bearing liabilities		2.94	%			2.90	%			3.09	%			2.92	%			2.97	%

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												Six Months Ended
		June 30,				March 31,				June 30,				June 30,				June 30,
			2025				2025				2024				2025				2024
Net Income		$	71,981			$	64,028			$	(11,485	)		$	136,009			$	20,596
Write-down on ORE property			—				2,690				—				2,690				—
Merger-related transaction costs			—				—				18,915				—				21,117
Less: income tax expense			—				(809	)			(4,625	)			(809	)			(4,649	)
Annualized adjusted net income		$	71,981				65,909			$	2,805			$	137,890			$	37,064
Less: Amortization of Intangibles (net of tax)			6,639				6,642				4,532			$	13,281.5018			$	5,025.1308
Annualized adjusted net income for annualized adjusted return on average tangible equity		$	78,620			$	72,551			$	7,337			$	151,171			$	42,089
Annualized Adjusted Return on Average Assets			1.19	%			1.11	%			0.06	%			1.15	%			0.45	%
Annualized Adjusted Return on Average Equity			10.76	%			10.13	%			0.53	%			10.45	%			3.90	%
Annualized Adjusted Return on Average Tangible Equity			16.79	%			16.15	%			2.01	%			16.48	%			6.25	%
(2) Annualized adjusted pre-tax, pre-provision ("PTPP") returns on average assets, average equity and average tangible equity
		Three Months Ended												Six Months Ended
		June 30,				March 31,				June 30,				June 30,				June 30,
			2025				2025				2024				2025				2024
Net income (loss)		$	71,981			$	64,028			$	(11,485	)		$	136,009			$	20,596
Adjustments to net income (loss):
Provision (benefit) charge for credit losses			(2,888	)			638				69,705				(2,250	)			69,385
Write-down on ORE property							2,690
Net loss on Lakeland bond sale			—				—				2,839				—				2,839
Merger-related transaction costs			—				—				18,915				—				21,117
Income tax expense (benefit)			30,462				27,825				(9,833	)			58,287				1,055
PTPP income		$	99,555			$	95,181			$	70,141			$	194,736			$	114,992
Annualized PTPP income		$	399,314			$	386,012			$	282,106			$	392,700			$	231,248
Average assets		$	24,349,808			$	24,049,318			$	19,197,041			$	24,200,393			$	16,645,404
Average equity		$	2,684,342			$	2,638,361			$	2,127,469			$	2,661,478			$	1,912,820
Average tangible equity		$	1,877,923			$	1,822,407			$	1,468,630			$	1,850,318			$	1,354,553
Annualized PTPP return on average assets			1.64	%			1.61	%			1.47	%			1.62	%			1.39	%
Annualized PTPP return on average equity			14.88	%			14.63	%			13.26	%			14.75	%			12.09	%
Annualized PTPP return on average tangible equity			21.26	%			21.18	%			19.21	%			21.22	%			17.07	%
(3) Tangible Common Equity Ratio, Book and Tangible Book Value per Share
										June 30,				March 31,				December 31,
											2025				2025				2024
Total assets										$	24,547,286			$	24,224,759			$	24,051,825
Less: total intangible assets											800,232				809,725				819,230
Total tangible assets										$	24,547,286			$	24,224,759			$	24,051,825
Total stockholders' equity										$	2,707,555			$	2,658,794			$	2,601,207
Less: total intangible assets											800,232				809,725				819,230
Total tangible stockholders' equity										$	1,907,323			$	1,849,069			$	1,781,977
Tangible common equity ratio											8.03	%			7.90	%			7.67	%
Shares outstanding											130,624,243				130,661,195				130,489,493
Book value per share (total stockholders' equity/shares outstanding)										$	20.73			$	20.35			$	19.93
Tangible book value per share (total tangible stockholders' equity/shares outstanding)										$	14.60			$	14.15			$	13.66
(4) Annualized Return on Average Tangible Equity
		Three Months Ended												Six Months Ended
		June 30,				March 31,				June 30,				June 30,				June 30,
			2025				2025				2024				2025				2024
Total average stockholders' equity		$	2,684,342			$	2,638,361			$	2,127,469			$	2,661,478			$	1,912,820
Less: total average intangible assets			806,419				815,954				658,839				811,160				558,267
Total average tangible stockholders' equity		$	1,877,923			$	1,822,407			$	1,468,630			$	1,850,318			$	1,354,553
Net income (loss)		$	71,981			$	64,028			$	(11,485	)		$	136,009			$	20,596
Less: Amortization of Intangibles, net of tax			6,639				6,642,149				4,532				13,282				5,025
Total net income (loss)		$	78,620			$	70,670			$	(6,953	)		$	149,291			$	25,621
Annualized return on average tangible equity (net income/total average tangible stockholders' equity)			16.79	%			15.73	%			(1.90)	%			16.27	%			3.80	%
(5) Annualized Adjusted Non-Interest Expense to Average Assets
		Three Months Ended												Six Months Ended
		June 30,				March 31,				June 30,				June 30,				June 30,
			2025				2025				2024				2025				2024
Reported non-interest expense		$	114,614			$	116,267			$	115,394			$	230,881			$	187,221
Adjustments to non-interest expense:
Write-down on ORE property			—				2,690				—				—				—
Merger-related transaction costs			—				—				18,915				—				21,117
Adjusted non-interest expense		$	114,614			$	113,577			$	96,479			$	230,881			$	166,104
Annualized adjusted non-interest expense		$	459,715			$	388,036			$	388,036			$	465,589			$	334,033
Average assets		$	24,349,808			$	24,049,318			$	19,197,041			$	24,200,393			$	16,645,404
Annualized adjusted non-interest expense/average assets			1.89	%			1.92	%			2.02	%			1.92	%			2.01	%
(6) Efficiency Ratio Calculation
		Three Months Ended												Six Months Ended
		June 30,				March 31,				June 30,				June 30,				June 30,
			2025				2025				2024				2025				2024
Net interest income		$	187,094			$	181,728			$	141,506			$	368,822			$	235,176
Reported non-interest income			27,075				27,030				22,275				54,105				43,081
Adjustments to non-interest income:
Net (gain) loss on securities transactions			—				(87	)			(2,973	)			(87	)			2,974
Adjusted non-interest income			27,075				26,943				25,248				54,018				46,055
Total income		$	214,169			$	208,671			$	166,754			$	422,840			$	281,231
Adjusted non-interest expense		$	114,614			$	113,577			$	96,479			$	230,881			$	166,104
Efficiency ratio (adjusted non-interest expense/income)			53.52	%			54.43	%			57.86	%			54.60	%			59.06	%

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Financial Condition
June 30, 2025 (Unaudited) and December 31, 2024
(Dollars in Thousands)
Assets	June 30, 2025				December 31, 2024
Cash and cash equivalents	$	258,925			$	205,939
Available for sale debt securities, at fair value		3,019,796				2,768,915
Held to maturity debt securities, net of allowance (fair value of $20,000 as of June 30, 2025 (unaudited) and $14,000 as of December 31, 2024)		308,704				327,623
Equity securities, at fair value		19,410				19,110
Federal Home Loan Bank stock		127,021				112,767
Loans held for sale		6,922				162,453
Loans held for investment		19,104,830				18,659,370
Less allowance for credit losses		187,871				193,432
Net loans		18,923,881				18,628,391
Foreclosed assets, net		963				9,473
Banking premises and equipment, net		115,709				119,622
Accrued interest receivable		92,714				91,160
Intangible assets		800,232				819,230
Bank-owned life insurance		409,949				405,893
Other assets		469,982				543,702
Total assets	$	24,547,286			$	24,051,825
Liabilities and Stockholders' Equity
Deposits:
Demand deposits	$	13,812,120			$	13,775,991
Savings deposits		1,628,971				1,679,667
Certificates of deposit of $250,000 or more		842,389				789,342
Other time deposits		2,425,044				2,378,813
Total deposits		18,708,524				18,623,813
Mortgage escrow deposits		50,291				42,247
Borrowed funds		2,374,660				2,020,435
Subordinated debentures		404,098				401,608
Other liabilities		302,158				362,515
Total liabilities		21,839,731				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 130,624,243 shares outstanding as of June 30, 2025 and 130,489,493 outstanding as of December 31, 2024		1,376				1,376
Additional paid-in capital		1,839,314				1,834,495
Retained earnings		1,061,897				989,111
Accumulated other comprehensive loss		(103,770	)			(135,355	)
Treasury stock		(91,262	)			(88,420	)
Total stockholders' equity		2,707,555				2,601,207
Total liabilities and stockholders' equity	$	24,547,286			$	24,051,825

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Income
Three months ended June 30, 2025, March 31, 2025 and June 30, 2024, and six months ended June 30, 2025 and 2024 (Unaudited)
(Dollars in Thousands, except per share data)
	Three Months Ended											Six Months Ended
	June 30,				March 31,			June 30,				June 30,				June 30,
		2025				2025			2024				2025				2024
Interest and dividend income:
Real estate secured loans	$	192,792			$	187,054		$	156,318			$	379,845			$	263,774
Commercial loans		78,854				75,819			58,532				154,673				94,632
Consumer loans		10,464				10,158			8,351				20,623				12,874
Available for sale debt securities, equity securities and Federal Home Loan Bank stock		31,444				29,644			20,394				61,088				32,724
Held to maturity debt securities		1,966				1,996			2,357				3,962				4,625
Deposits, federal funds sold and other short-term investments		788				675			1,859				1,463				3,041
Total interest income		316,308				305,346			247,811				621,654				411,670
Interest expense:
Deposits		96,257				97,420			81,058				193,678				133,592
Borrowed funds		24,470				17,778			20,566				42,247				37,949
Subordinated debt		8,487				8,420			4,681				16,907				4,953
Total interest expense		129,214				123,618			106,305				252,832				176,494
Net interest income		187,094				181,728			141,506				368,822				235,176
Provision (benefit) charge for credit losses		(2,888	)			638			69,705				(2,250	)			69,385
Net interest income after provision for credit losses		189,982				181,090			71,801				371,072				165,791
Non-interest income:
Fees		10,736				9,655			8,699				20,391				14,611
Wealth management income		6,948				7,328			7,769				14,275				15,257
Insurance agency income		4,942				5,651			4,488				10,593				9,281
Bank-owned life insurance		2,585				2,092			3,323				4,678				5,140
Net gain (loss) on securities transactions		—				87			(2,973	)			87				(2,974	)
Other income		1,864				2,217			969				4,081				1,766
Total non-interest income		27,075				27,030			22,275				54,105				43,081
Non-interest expense:
Compensation and employee benefits		63,249				62,366			54,888				125,615				94,936
Net occupancy expense		13,011				13,927			11,142				26,938				19,662
Data processing expense		9,599				9,605			8,433				19,203				15,217
FDIC Insurance		3,341				3,385			3,100				6,727				5,372
Amortization of intangibles		9,497				9,501			6,483				18,998				7,188
Advertising and promotion expense		1,429				1,060			1,171				2,489				2,137
Merger-related expenses		—				—			18,915				—				21,117
Other operating expenses		14,488				16,423			11,262				30,911				21,592
Total non-interest expense		114,614				116,267			115,394				230,881				187,221
Income (loss) before income tax expense		102,443				91,853			(21,318	)			194,296				21,651
Income tax expense (benefit)		30,462				27,825			(9,833	)			58,287				1,055
Net income (loss)	$	71,981			$	64,028		$	(11,485	)		$	136,009			$	20,596
Basic earnings per share	$	0.55			$	0.49		$	(0.11	)		$	1.04			$	0.23
Average basic shares outstanding		130,484,287				130,325,393			102,957,521				130,405,490				89,108,775
Diluted earnings per share	$	0.55			$	0.49		$	(0.11	)		$	1.04			$	0.23
Average diluted shares outstanding		130,500,143				130,380,475			102,957,521				130,440,958				89,116,590

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Quarterly Average Balances
(Dollars in Thousands) (Unaudited)
	June 30, 2025									March 31, 2025									June 30, 2024
	Average Balance			Interest			Average Yield/Cost			Average Balance			Interest			Average Yield/Cost			Average Balance			Interest			Average Yield/Cost
Interest-Earning Assets:
Deposits	$	75,714		$	788		4.21	%		$	80,074		$	675		4.21	%		$	40,228		$	1,859		5.38	%
Available for sale debt securities		2,958,325			29,306		3.96	%			2,827,699			27,621		3.89	%			2,244,725			17,646		3.14	%
Held to maturity debt securities, net (1)		315,204			1,966		2.49	%			320,036			1,996		2.50	%			352,216			2,357		2.68	%
Equity securities, at fair value		19,235			—		—	%			19,840			—		—	%			10,373			—		—	%
Total securities		3,292,764			31,272		3.80	%			3,167,575			29,617		3.73	%			2,607,314			20,003		3.07	%
Federal Home Loan Bank stock		133,447			2,138		6.44	%			107,527			2,023		7.53	%			88,864			2,747		12.36	%
Net loans: (2)
Total mortgage loans		13,398,650			192,792		5.77	%			13,297,168			187,054		5.70	%			10,674,109			156,318		5.81	%
Total commercial loans		4,816,237			78,854		6.57	%			4,684,572			75,819		6.56	%			3,514,602			58,532		6.62	%
Total consumer loans		612,418			10,464		6.85	%			609,137			10,158		6.76	%			460,702			8,351		7.29	%
Total net loans		18,827,305			282,110		6.01	%			18,590,877			273,031		5.95	%			14,649,413			223,201		6.05	%
Total interest-earning assets	$	22,329,230		$	316,308		5.68	%		$	21,946,053		$	305,346		5.63	%		$	17,385,819		$	247,810		5.67	%
Non-Interest Earning Assets:
Cash and due from banks		150,464									134,205									37,621
Other assets		1,870,114									1,969,060									1,773,601
Total assets	$	24,349,808								$	24,049,318								$	19,197,041
Interest-Bearing Liabilities:
Demand deposits	$	9,874,149		$	64,803		2.63	%		$	10,095,570		$	65,433		2.63	%		$	7,935,543		$	58,179		2.95	%
Savings deposits		1,647,746			900		0.22	%			1,682,596			924		0.22	%			1,454,784			832		0.23	%
Time deposits		3,197,374			30,555		3.83	%			3,199,620			31,063		3.94	%			2,086,433			22,047		4.25	%
Total deposits		14,719,269			96,258		2.62	%			14,977,786			97,420		2.64	%			11,476,760			81,058		2.84	%
Borrowed funds		2,490,379			24,470		3.94	%			1,918,069			17,778		3.76	%			2,158,193			20,565		3.83	%
Subordinated debentures		403,286			8,487		8.44	%			402,037			8,420		8.49	%			221,086			4,681		8.52	%
Total interest-bearing liabilities		17,612,934			129,215		2.94	%			17,297,892			123,618		2.90	%			13,856,039			106,304		3.09	%
Non-Interest Bearing Liabilities:
Non-interest bearing deposits		3,700,132									3,719,177									2,866,917
Other non-interest bearing liabilities		352,400									393,888									346,616
Total non-interest bearing liabilities		4,052,532									4,113,065									3,213,533
Total liabilities		21,665,466									21,410,957									17,069,572
Stockholders' equity		2,684,342									2,638,361									2,127,469
Total liabilities and stockholders' equity	$	24,349,808								$	24,049,318								$	19,197,041
Net interest income				$	187,093								$	181,728								$	141,506
Net interest rate spread							2.74	%								2.73	%								2.58	%
Net interest-earning assets	$	4,716,296								$	4,648,161								$	3,529,780
Net interest margin (3)							3.36	%								3.34	%								3.21	%
Ratio of interest-earning assets to total interest-bearing liabilities	1.27x									1.27x									1.25x

(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.
	6/30/25			3/31/25			12/31/24			9/30/24			6/30/24
	2nd Qtr.			1st Qtr.			4th Qtr.			3rd Qtr.			2nd Qtr.
Interest-Earning Assets:
Securities	3.80	%		3.73	%		3.55	%		3.56	%		3.07	%
Net loans	6.01	%		5.95	%		5.99	%		6.21	%		6.05	%
Total interest-earning assets	5.68	%		5.63	%		5.66	%		5.84	%		5.67	%
Interest-Bearing Liabilities:
Deposits	2.62	%		2.64	%		2.81	%		2.96	%		2.84	%
Borrowings	3.94	%		3.76	%		3.64	%		3.73	%		3.83	%
Total interest-bearing liabilities	2.94	%		2.90	%		3.03	%		3.19	%		3.09	%
Interest rate spread	2.74	%		2.73	%		2.63	%		2.65	%		2.58	%
Net interest margin	3.36	%		3.34	%		3.28	%		3.31	%		3.21	%
Ratio of interest-earning assets to interest-bearing liabilities	1.27x			1.27x			1.27x			1.26x			1.25x

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Average Year to Date Balances
(Dollars in Thousands) (Unaudited)
	June 30, 2025									June 30, 2024
	Average						Average			Average						Average
	Balance			Interest			Yield/Cost			Balance			Interest			Yield/Cost
Interest-Earning Assets:
Deposits	$	77,882		$	1,463		4.21	%		$	32,901		$	3,041		5.38	%
Available for sale debt securities		2,893,373			56,927		3.91	%			1,959,549			27,669		2.82	%
Held to maturity debt securities, net (1)		317,607			3,962		2.50	%			354,731			4,625		2.61	%
Equity securities, at fair value		19,212			—		—	%			5,525			—		—	%
Total securities		3,230,192			60,889		3.75	%			2,319,805			32,294		2.78	%
Federal Home Loan Bank stock		120,883			4,161		6.92	%			81,309			5,055		12.43	%
Net loans: (2)
Total mortgage loans		13,351,451			379,845		5.73	%			9,326,838			263,774		5.61	%
Total commercial loans		4,747,564			154,673		6.57	%			2,953,842			94,632		6.39	%
Total consumer loans		610,728			20,623		6.81	%			378,522			12,874		6.84	%
Total net loans		18,709,743			555,141		5.98	%			12,659,202			371,280		5.83	%
Total interest-earning assets	$	22,138,700		$	621,654		5.65	%		$	15,093,217		$	411,670		5.43	%
Non-Interest Earning Assets:
Cash and due from banks		142,380									108,229
Other assets		1,919,313									1,443,958
Total assets	$	24,200,393								$	16,645,404
Interest-Bearing Liabilities:
Demand deposits	$	9,984,248		$	130,235		2.63	%		$	6,914,802		$	99,745		2.90	%
Savings deposits		1,665,075			1,824		0.22	%			1,308,983			1,469		0.23	%
Time deposits		3,198,491			61,618		3.88	%			1,575,801			32,378		4.13	%
Total deposits		14,847,814			193,677		2.63	%			9,799,586			133,592		2.74	%
Borrowed funds		2,205,805			42,247		3.86	%			2,049,587			37,949		3.75	%
Subordinated debentures		402,665			16,907		8.47	%			115,899			4,953		8.59	%
Total interest-bearing liabilities	$	17,456,284		$	252,831		2.92	%		$	11,965,072		$	176,494		2.97	%
Non-Interest Bearing Liabilities:
Non-interest bearing deposits		3,709,602									2,469,459
Other non-interest bearing liabilities		373,029									298,053
Total non-interest bearing liabilities		4,082,631									2,767,512
Total liabilities		21,538,915									14,732,584
Stockholders' equity		2,661,478									1,912,820
Total liabilities and stockholders' equity	$	24,200,393								$	16,645,404
Net interest income				$	368,823								$	235,176
Net interest rate spread							2.73	%								2.46	%
Net interest-earning assets	$	4,682,416								$	3,128,145
Net interest margin (3)							3.35	%								3.08	%
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.
	Six Months Ended
	June 30, 2025			June 30, 2024			June 30, 2023
Interest-Earning Assets:
Securities	3.75	%		2.78	%		2.32	%
Net loans	5.98	%		5.83	%		5.18	%
Total interest-earning assets	5.65	%		5.43	%		4.68	%
Interest-Bearing Liabilities:
Deposits	2.63	%		2.74	%		1.62	%
Borrowings	3.86	%		3.75	%		3.01	%
Total interest-bearing liabilities	2.92	%		2.97	%		1.84	%
Interest rate spread	2.73	%		2.46	%		2.84	%
Net interest margin	3.35	%		3.08	%		3.29	%
Ratio of interest-earning assets to interest-bearing liabilities	1.27x			1.26x			1.33x

SOURCE: Provident Financial Services, Inc.
CONTACT: Investor Relations, 1-732-590-9300
Web Site: http://www.Provident.Bank

FAQ

What was Provident Financial Services (PFS) earnings per share in Q2 2025?

PFS reported earnings of $0.55 per basic and diluted share for Q2 2025, compared to $0.49 in Q1 2025.

How much did PFS net interest income grow in Q2 2025?

PFS achieved record net interest income of $187.1 million, an increase of $5.4 million from the previous quarter.

What was PFS's loan growth in Q2 2025?

PFS's C&I loan portfolio grew 16.26% annualized to $4.69 billion, while the total commercial loan portfolio increased 7.98% annualized to $16.51 billion.

How did PFS's asset quality perform in Q2 2025?

Asset quality was strong with non-performing assets at 0.44% and annualized net charge-offs of just 0.03% of loans.

What was PFS's net interest margin in Q2 2025?

The net interest margin was 3.36%, an increase of 2 basis points from 3.34% in the previous quarter.

How much did PFS's tangible book value per share grow in Q2 2025?

Tangible book value per share increased 3.2% to $14.60, while the tangible common equity ratio improved by 13 basis points to 8.03%.