Provident Financial Services, Inc. Reports Second Quarter Earnings

Q: How did Provident Financial Services (PFS) perform in Q2 2026 earnings?

Provident reported Q2 2026 net income of $78.1 million , or $0.60 per share. According to the company, this compared with $72.0 million, or $0.55 per share, in Q2 2025, reflecting higher net interest income and record non-interest income.

Q: What was Provident Financial Services' core profitability and net interest margin in Q2 2026?

Provident’s Q2 2026 net interest margin was 3.48% , with core net interest margin of 3.09% . According to the company, annualized core ROAA reached 1.27% and core PPNR ROAA was 1.87% , supported by growth in earning assets and improved core margin.

Q: How did loans and deposits change for Provident Financial Services (PFS) as of June 30, 2026?

Total loans reached $20.05 billion and deposits were $19.55 billion at June 30, 2026. According to the company, commercial loans grew, loan funding totaled $5.28 billion year-to-date, and savings plus demand deposits increased to $16.10 billion compared with December 31, 2025.

Q: What is the asset quality profile of Provident Financial Services as of Q2 2026?

Non-performing loans were $136.9 million , or 0.68% of total loans, as of June 30, 2026. According to the company, annualized net charge-offs were 0.04% of average loans and the allowance for credit losses was 0.92% of total loans.

Q: What are Provident Financial Services' key capital ratios and tangible book value in Q2 2026?

Tangible book value per share was $16.42 , and the tangible common equity ratio was 8.60% at June 30, 2026. According to the company, Common Equity Tier 1 and Total Risk-Based Capital ratios at Provident Bank were 12.1% and 13.0% , respectively.

Q: Did Provident Financial Services (PFS) repurchase stock in the first half of 2026?

Provident repurchased 614,722 shares in the six months ended June 30, 2026, at an average cost of $21.09 per share. According to the company, 25,799 shares were repurchased in Q2 alone, and about 2.20 million shares remained authorized.

Q: How much of Provident Financial Services' revenue came from non-interest income in Q2 2026?

Non-interest income totaled a record $32.0 million in Q2 2026. According to the company, non-interest income represented nearly 14% of total revenues, driven by higher loan-related fees, swap fees, and increased wealth management and insurance agency income.

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Rhea-AI Sentiment

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Rhea-AI Summary

Provident Financial Services (NYSE:PFS) reported second-quarter 2026 net income of $78.1 million, or $0.60 per share, versus $79.4 million ($0.61) in Q1 2026 and $72.0 million ($0.55) in Q2 2025. Core net income was $79.9 million, or $0.61 per share. For the first half of 2026, net income was $157.6 million, or $1.21 per share, up from $136.0 million ($1.04) a year earlier. Core PPNR reached $117.8 million, with core PPNR ROAA of 1.87%. Net interest margin improved to 3.48%, core NIM to 3.09%, and non-interest income rose to a record $32.0 million. Total assets were $25.66 billion, loans $20.05 billion, and deposits $19.55 billion. Tangible book value per share increased to $16.42, the tangible common equity ratio to 8.60%, while non-performing loans were 0.68% of total loans and annualized net charge-offs were 0.04%.

Positive

Net income H1 2026 $157.6M vs. $136.0M in H1 2025
Core PPNR Q2 2026 $117.8M; core PPNR ROAA 1.87%
Net interest income Q2 2026 $202.7M, up $15.6M year over year
Non-interest income Q2 2026 $32.0M, up $4.9M year over year
Net interest margin 3.48% in Q2 2026 vs. 3.36% in Q2 2025
Tangible book value per share $16.42, up 12% year over year

Negative

Allowance coverage of non-performing loans 134.87% vs. 235.61% at December 31, 2025
Non-performing loans ratio 0.68% of total loans vs. 0.40% at December 31, 2025
Borrowed funds $2.41B, up from $2.11B at December 31, 2025

News Explained

By June 30, 614,722 shares had been repurchased year-to-date, while non-performing assets were $137.9 million and borrowings $2.41 billion, both above year-end.

Provident Financial Services reported its second-quarter results for the three months ended June 30, 2026; the holder-relevant structural change disclosed is 614,722 common shares repurchased in the first half, while 2,199,471 shares remain eligible under the authorization.

The release lists 25,799 shares repurchased during the quarter at an average cost of $22.15 per share and 614,722 during the first half at an average cost of $21.09; the remaining eligible shares describe authorization, not additional shares already bought.

Non-performing loans were $136.9 million, down from $142.9 million at the prior quarter-end but above $78.4 million at year-end; non-performing assets were $137.9 million, up $57.4 million from year-end, so the release shows improved quarter-to-quarter loans but higher problem assets versus year-end.

Borrowed funds totaled $2.41 billion, or 9.4% of assets, versus $2.11 billion and 8.5% at year-end; the company says the increase largely funded asset growth and seasonal municipal-deposit outflows.

Market Context

Insider context recorded Net Selling, with 6,084 shares sold and none bought during the 90-day windo...

Analysis

Insider context recorded Net Selling, with 6,084 shares sold and none bought during the 90-day window. That provides a sourced ownership-activity comparison for the earnings announcement; subsequent profitability and asset-quality disclosures warrant monitoring.

Key Figures

Net Income: $78.1 million EPS: $0.60 per share Six-Month Net Income: $157.6 million +5 more

8 metrics

Net Income $78.1 million Second quarter 2026, versus $72.0 million in second quarter 2025

EPS $0.60 per share Second quarter 2026, versus $0.55 per share in second quarter 2025

Six-Month Net Income $157.6 million Six months ended June 30, 2026, versus $136.0 million in 2025

Core PPNR $117.8 million Second quarter 2026, versus $99.6 million in second quarter 2025

Net Interest Margin 3.48% Second quarter 2026, versus 3.36% in the prior-year quarter

Net Interest Income $202.7 million Second quarter 2026, up $15.6 million year over year

Commercial Loan Growth 9.9% annualized Quarter ended June 30, 2026

Non-Performing Loans $136.9 million June 30, 2026, down $6.0 million from the trailing quarter

Previous Earnings Reports

3 past events · Latest: Apr 29 (Positive)

Same Type Pattern 3 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 29	First quarter earnings	Positive	+1.2%	Higher net income, record non-interest income, and stronger loan pipeline supported results.
Oct 29	Third quarter earnings	Positive	-0.4%	Net income, revenue, deposits, loans, and pipeline increased while shares declined.
Jul 24	Second quarter earnings	Positive	+0.4%	Record revenue, higher margin, loan growth, and stable asset quality accompanied results.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Earnings reactions were positive twice and negative once across the three tag-matched events, with an average move of 0.41%.

Key Terms

ppnr, roaa, net interest margin, tangible common equity ratio, +1 more

5 terms

ppnr financial

"Core pre-provision, net revenue ("PPNR")"

Pre-provision net revenue (PPNR) is a bank’s revenue after accounting for day-to-day operating costs but before subtracting money set aside for bad loans. Think of it like a store’s gross profit before it reserves cash for damaged goods: it shows the core ability to generate income from lending and fees, and helps investors judge a bank’s operating strength separate from credit losses.

roaa financial

"Annualized core return on average assets ("ROAA")"

Return on Average Assets (ROAA) measures how efficiently a company turns its assets into profit by dividing net profit over a period by the average total assets it held during that period. It matters to investors because it shows whether a business is getting a good return from what it owns—like judging a car’s fuel efficiency by miles per gallon—helping compare profitability across companies of different sizes.

net interest margin financial

"net interest margin improved to 1.27% and 3.48%"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

tangible common equity ratio financial

"Tangible common equity ratio has grown consistently"

Tangible common equity ratio measures how much real, loss-absorbing capital common shareholders have relative to a company's tangible assets—calculated by removing intangible items (like goodwill) and preferred equity from total equity and comparing that net amount to tangible assets. Think of it as the thickness of a safety cushion made of solid, visible value rather than accounting entries; investors use it to judge how well a company could withstand losses and protect common shareholders' claims.

common equity tier one regulatory

"Common Equity Tier One and Total Risk Based Capital ratios"

Common Equity Tier 1 (CET1) is a regulatory capital measure that shows the amount of a bank’s highest-quality capital—mainly common shares and retained earnings—available to absorb losses. Think of it as the bank’s financial cushion measured against its risk-weighted assets, like a safety margin relative to what the bank has on its balance sheet. Investors watch CET1 because it indicates a bank’s resilience and ability to withstand financial stress.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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07/29/2026 - 04:30 PM

ISELIN, N.J., July 29, 2026 (GLOBE NEWSWIRE) -- Provident Financial Services, Inc. (NYSE:PFS) (the “Company”) reported net income of $78.1 million, or $0.60 per basic and diluted share for the three months ended June 30, 2026, compared to $79.4 million, or $0.61 per basic and diluted share, for the three months ended March 31, 2026 and $72.0 million, or $0.55 per basic and diluted share, for the three months ended June 30, 2025. For the six months ended June 30, 2026, net income totaled $157.6 million, or $1.21 per basic and diluted share, compared to $136.0 million, or $1.04 per basic and diluted share, for the six months ended June 30, 2025. For the three and six months ended June 30, 2026, core net income ⁽¹⁾, which has been adjusted for one-time core system conversion and executive severance expenses, totaled $79.9 million, or $0.61 per basic and diluted share and $159.3 million, or $1.22 per basic and diluted share, respectively.

Core pre-provision, net revenue ("PPNR") ⁽²⁾for the three months ended June 30, 2026 was $117.8 million, or $0.90 per basic and diluted share for the three months ended June 30, 2026, compared to $99.6 million, or $0.76 per basic and diluted share, for the three months ended June 30, 2025. Increases in both net income and core PPNR were driven primarily by expanding net interest income and higher non-interest income, including higher wealth management and insurance agency income.

Anthony J. Labozzetta, President and Chief Executive Officer commented, “Through the first half of 2026, Provident has grown earnings per share 17% year-over-year while also significantly improving our profitability and building capital. We achieved record pre-provision net revenue during the second quarter, driven by strong commercial loan production, expanding core margin and increasing contribution from non-interest income, which represented nearly 14% of total revenues. We are proud of the noticeable momentum of our organization, and I’m optimistic that we will continue to drive organic growth with an unchanged commitment to achieving top quartile risk-adjusted returns."

Key Points for the Second Quarter

Expanding Core Profitability with Record Revenue
- Annualized core return on average assets ("ROAA") ⁽³⁾ and net interest margin improved to 1.27% and 3.48%, respectively, from 1.19% and 3.36% in the prior year quarter. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 2 of the earnings release.
- Core net interest margin, which excludes the impact of purchase accounting accretion and amortization and interest recovery on resolved non-performing loans, increased 5 basis points from the trailing quarter to 3.09% and 16 basis points from the prior year quarter.
- Core PPNR ⁽²⁾ growth of $18.2 million from the prior year quarter, resulting in a 23 basis point expansion of PPNR ROAA to 1.87%. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 2 of the earnings release.
- Record net-interest income increased $15.6 million to $202.7 million when compared to the prior year quarter, driven primarily by growth in our earning assets and an expanded net interest margin.
- Record non-interest income increased $4.9 million to $32.0 million when compared to the prior year quarter, driven primarily by growth in loan related fee income, swap fee income, wealth management and insurance agency income.
Strong Loan Growth Trends with Low Net Charge-Offs
- Total commercial loans, including mortgage warehouse lines, commercial mortgage, multi-family and construction loans, increased 9.9% annualized for the quarter.
- Our record pipeline totaled $3.17 billion as of June 30, 2026, with a weighted average interest rate of 6.33%. Both the CRE and C&I pipelines exceeded $1.0 billion for the second consecutive quarter, reflecting the investments we have made in our commercial banking group to generate sustainable, diversified loan growth.
- Non-performing loans declined $6.0 million compared to the trailing quarter to $136.9 million. Net charge-offs of $1.9 million and $5.0 million for the quarter and six months ended June 30, 2026, represent an annualized 4 and 5 basis points of average loans, respectively.
Building Capital Position further Strengthening the Balance Sheet
- Tangible book value ("TBV") per share ⁽⁴⁾grew 2% to $16.42 quarter over quarter and grew 12% year over year.
- Tangible common equity ratio ⁽⁴⁾ has grown consistently, increasing from 8.03% as of June 30, 2025, to 8.60% as of June 30, 2026.
- Common Equity Tier One and Total Risk Based Capital ratios for Provident Bank were above well-capitalized at 12.1% and 13.0% as of June 30, 2026, respectively.
- The Company's adjusted CRE concentration ratio, excluding purchase accounting adjustments as of June 30, 2026 was 399.7%, compared to 399.5% as of December 31, 2025.

Second Quarter 2026 Financial Highlights and Key Performance Indicators (KPIs):

	For the Quarter Ended
	June 30,		March 31,		December 31,		September 30,		June 30,
	2026		2026		2025		2025		2025
Annualized return on average assets	1.24	%	1.29	%	1.34	%	1.16	%	1.19	%
Annualized core return on average assets⁽³⁾	1.27	%	1.29	%	1.34	%	1.16	%	1.19	%
Annualized return on average equity	10.82	%	11.21	%	11.78	%	10.39	%	10.76	%
Annualized core return on average equity⁽³⁾	11.05	%	11.21	%	11.78	%	10.39	%	10.76	%
Annualized return on average tangible equity⁽⁵⁾	15.90	%	16.58	%	17.58	%	16.01	%	16.79	%
Annualized core return on average tangible equity⁽³⁾	16.22	%	16.58	%	17.58	%	16.01	%	16.79	%
Annualized core non-interest expense to average assets⁽⁶⁾	1.85	%	1.90	%	1.84	%	1.83	%	1.89	%
Core efficiency ratio⁽⁷⁾	49.75	%	52.02	%	50.97	%	51.01	%	53.52	%
Non-performing loans to total loans	0.68	%	0.73	%	0.40	%	0.52	%	0.56	%
Non-performing assets to total assets	0.54	%	0.58	%	0.32	%	0.41	%	0.44	%
Allowance for loan losses to total non-performing loans	134.87	%	123.84	%	235.61	%	186.21	%	175.32	%
Allowance for loan losses to total loans	0.92	%	0.90	%	0.95	%	0.97	%	0.98	%
Annualized net loan charge-offs to average total loans	0.04	%	0.06	%	0.09	%	0.11	%	0.03	%
Average yield on interest-earning assets	5.61	%	5.53	%	5.66	%	5.76	%	5.68	%
Average cost of interest-bearing liabilities	2.71	%	2.71	%	2.83	%	2.96	%	2.94	%
Net interest margin	3.48	%	3.40	%	3.44	%	3.43	%	3.36	%

Annualized core PPNR return on average assets⁽²⁾	1.87	%	1.75	%	1.78	%	1.76	%	1.64	%
Annualized core PPNR return on average equity⁽²⁾	16.30	%	15.25	%	15.68	%	15.74	%	14.88	%
Annualized core PPNR return on average tangible equity⁽²⁾	22.21	%	20.93	%	21.78	%	22.20	%	21.26	%

Balance Sheet Summary

Assets:

Total assets as of June 30, 2026 were $25.66 billion, compared to $24.98 billion as of December 31, 2025.
- Total investment securities were $3.57 billion as of June 30, 2026, compared to $3.47 billion as of December 31, 2025. The increase in investment securities was primarily due to purchases of mortgage-backed securities, partially offset by an increase in unrealized losses on available for sale debt securities.
- Loans held for investment totaled $20.05 billion as of June 30, 2026, and $19.50 billion as of December 31, 2025, with net increases of $407.6 million of commercial loans, $139.5 million of multi-family loans and $103.8 million of commercial mortgage loans, partially offset by net decreases of $43.1 million of mortgage warehouse lines, $35.6 million of residential mortgage loans, $23.2 million of construction loans and $5.1 million of consumer loans.
  - Total commercial loans, including mortgage warehouse lines, commercial mortgage, multi-family and construction loans, represented 87.3% of the loan portfolio as of June 30, 2026, compared to 86.7% as of December 31, 2025.
  - Loan funding, including advances on lines of credit, totaled $5.28 billion as of June 30, 2026, compared with $4.30 billion for the same period in 2025.
  - The Company’s unfunded loan commitments totaled $4.07 billion, including commitments of $2.37 billion in commercial loans, $717.0 million in construction loans and $283.5 million in commercial mortgage loans. Unfunded loan commitments as of December 31, 2025 and June 30, 2025 were $3.71 billion and $3.74 billion, respectively.

	June 30, 2026			March 31, 2026			December 31, 2025
	(Dollars in thousands)
Mortgage loans:
Commercial	$	7,502,579		$	7,423,652		$	7,398,792
Multi-family		3,806,823			3,724,236			3,667,337
Construction		638,933			640,929			662,112
Residential		1,938,704			1,960,861			1,974,324
Total mortgage loans		13,887,039			13,749,678			13,702,565
Commercial loans		5,251,096			4,966,608			4,843,466
Mortgage warehouse lines		313,934			334,505			357,051
Consumer loans		607,373			608,016			612,431
Total gross loans		20,059,442			19,658,807			19,515,513
Premiums on purchased loans		1,663			1,700			1,524
Net deferred fees and unearned discounts		(15,353	)		(12,805	)		(12,976	)
Total loans	$	20,045,752		$	19,647,702		$	19,504,061

Liabilities and Capital:

Total deposits were $19.55 billion as of June 30, 2026, compared to $19.28 billion as of December 31, 2025. Total savings and demand deposit accounts increased $110.3 million to $16.10 billion as of June 30, 2026, while total time deposits increased $156.2 million to $3.44 billion as of June 30, 2026. The increase in savings and demand deposits was largely attributable to a $351.4 million increase in money market deposits and a $94.1 million increase in non-interest bearing demand deposits, partially offset by a $328.7 million decrease in interest bearing demand deposits. Within interest bearing demand deposits, municipal deposits decreased $443.4 million, primarily due to seasonal outflows. To assist in funding the aforementioned seasonal outflows, brokered time deposits increased by $149.3 million.

	June 30, 2026		March 31, 2026	December 31, 2025
	(Dollars in thousands)

Non-interest bearing	$	3,808,318	3,716,536	3,714,253
Savings		1,582,750	1,624,122	1,589,259
Money market		4,044,648	3,846,653	3,693,285
Negotiable Order of Withdrawal ("NOW")		6,665,950	6,723,369	6,994,610
Certificates of deposit		3,443,503	3,189,622	3,287,276
Total deposits	$	19,545,169	19,100,302	19,278,683

Borrowed funds totaled $2.41 billion as of June 30, 2026, compared to $2.11 billion as of December 31, 2025. The increase in borrowed funds was largely used to fund asset growth and seasonal outflows in municipal deposits. Borrowed funds represented 9.4% of total assets as of June 30, 2026, an increase from 8.5% as of December 31, 2025.
Stockholders’ equity totaled $2.91 billion compared to $2.83 billion as of December 31, 2025, primarily due to net income earned for the period, partially offset by cash dividends paid to stockholders and an increase in unrealized losses on available for sale debt securities.
- For the three and six months ended June 30, 2026, common stock repurchases totaled 25,799 shares at an average cost of $22.15 per share and 614,722 shares at an average cost of $21.09 per share, respectively. As of June 30, 2026, approximately 2,199,471 shares remained eligible for repurchase under the current stock repurchase authorization.
- Book value per share and TBV per share⁽⁴⁾ as of June 30, 2026 were $22.29 and $16.42, respectively, compared with $21.69 and $15.70, respectively, as of December 31, 2025.

Asset Quality:

The Company’s total non-performing loans as of June 30, 2026 were $136.9 million, or 0.68% of total loans held for investment, compared to $142.9 million, or 0.73% of total loans as of March 31, 2026 and $78.4 million, or 0.40% of total loans as of December 31, 2025. The allowance for credit losses on loans represented 134.87% of non-performing loans, compared to 235.61% at December 31, 2025, and 175.32% at June 30, 2025.
As of June 30, 2026, impaired loans totaled $121.2 million with related specific reserves of $3.8 million, compared with impaired loans totaling $128.4 million with related specific reserves of $1.6 million as of March 31, 2026. As of December 31, 2025, impaired loans totaled $63.3 million with related specific reserves of $5.9 million.
As of June 30, 2026, the Company’s allowance for credit losses related to the loan portfolio was 0.92% of total loans, compared to 0.90% and 0.95% as of March 31, 2026 and December 31, 2025, respectively. The allowance for credit losses decreased $111,000 to $184.7 million as of June 30, 2026, from $184.8 million as of December 31, 2025. The decrease in the allowance for credit losses on loans as of June 30, 2026 compared to December 31, 2025 was due to net charge-offs of $5.0 million, partially offset by a $4.9 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.

	June 30, 2026				March 31, 2026				December 31, 2025
	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	$	2,301		4	$	2,665		8	$	15,652
Multi-family mortgage loans	1		1,570		1		694		—		—
Construction loans	—		—		1		6,639		—		—
Residential mortgage loans	27		6,393		25		5,123		34		8,344
Total mortgage loans	31		10,264		31		15,121		42		23,996
Commercial loans	5		1,474		22		10,359		9		1,303
Consumer loans	31		1,401		42		3,588		49		2,209
Total 30 to 59 days past due	67	$	13,139		95	$	29,068		100	$	27,508

60 to 89 days past due:
Commercial mortgage loans	—	$	—		—	$	—		—	$	—
Multi-family mortgage loans	—		—		—		—		1		932
Construction loans	—		—		—		—		—		—
Residential mortgage loans	20		5,929		22		6,893		16		4,177
Total mortgage loans	20		5,929		22		6,893		17		5,109
Commercial loans	4		828		6		2,520		3		633
Consumer loans	13		1,577		12		634		14		781
Total 60 to 89 days past due	37		8,334		40		10,047		34		6,523
Total accruing past due loans	104	$	21,473		135	$	39,115		134	$	34,031

Non-accrual:
Commercial mortgage loans	8	$	21,338		9	$	21,977		11	$	26,856
Multi-family mortgage loans	1		266		1		275		3		2,268
Construction loans	1		2,854		1		3,278		1		5,159
Residential mortgage loans	32		7,834		27		8,669		32		9,062
Total mortgage loans	42		32,292		38		34,199		47		43,345
Commercial loans	71		103,383		41		107,398		28		33,219
Consumer loans	17		1,210		23		1,327		27		1,856
Total non-accrual loans	130	$	136,885		102	$	142,924		102	$	78,420

Non-performing loans to total loans held for investment			0.68	%			0.73	%			0.40	%
Allowance for loan losses to total non-performing loans			134.87	%			123.84	%			235.61	%
Allowance for loan losses to total loans			0.92	%			0.90	%			0.95	%

As of June 30, 2026 and December 31, 2025, the Company held foreclosed assets of $1.0 million and $2.0 million, respectively. Foreclosed assets as of June 30, 2026 was comprised of one commercial real estate property. Total non-performing assets at June 30, 2026 increased $57.4 million to $137.9 million, or 0.54% of total assets, from $80.4 million, or 0.32% of total assets at December 31, 2025.

Results of Operations

Second quarter of 2026 compared to the first quarter of 2026:

Net interest income

Net interest income was $202.7 million, compared to $193.7 million. The increase was primarily due to originations of new loans at current market rates and the favorable repricing of adjustable rate loans.
Net interest margin was 3.48%, compared to 3.40%. The yield on interest-earning assets increased 8 basis points to 5.61%, while the cost of interest-bearing liabilities remained at 2.71%. The cost of total deposits, which includes non-interest bearing deposits, was 1.92%, compared to 1.94%.
Average loans totaled $19.57 billion, an increase of $214.7 million, or 4.44%, primarily due to strong commercial loan growth in the quarter.
Average total deposits totaled $19.23 billion compared to $19.24 billion.

Provision for credit losses

The provision for credit losses was $9.3 million, compared to a $2.1 million recapture of previous provisions for credit losses in the prior quarter. The provision for credit losses in the second quarter consisted of a $9.6 million provision related to loans, partially offset by a $0.2 million recapture of provision related to off-balance sheet credit exposures, compared with a $4.7 million recapture of provision for credit losses on loans, partially offset by a $2.5 million provision related to off-balance sheet credit exposures for the prior quarter. The increase in the provision for credit losses was primarily due to overall growth in the loan portfolio, combined with an increase in specific reserves on individually evaluated loans.
Net charge-offs were $1.9 million, compared to $3.1 million in the prior quarter, while the ratio of net charge-offs to average loans was 0.04%, compared to 0.06% in the prior quarter.

Non-interest income and non-interest expense

Total non-interest income was $32.0 million, compared to $31.5 million, an increase of $0.5 million. The increase was primarily driven by a $1.8 million increase in fee income, partially offset by a $1.4 million decrease in insurance agency income. The increase in fee income was primarily related to increases in loan related fee income and deposit fee income. The decrease in insurance agency income was mainly due to the receipt of contingent commissions in the prior quarter.
Total non-interest expense was $119.3 million, compared to $117.1 million, an increase of $2.1 million. The increase was mainly due to $1.5 million related to costs associated with our ongoing core system conversion, combined with an increase in severance expense.
The Company’s annualized core non-interest expense as a percentage of average assets⁽⁶⁾ totaled 1.85% for the quarter ended June 30, 2026, compared to 1.90% for the trailing quarter. The core efficiency ratio (core non-interest expense divided by the sum of net interest income and core non-interest income)⁽⁷⁾was 49.75% for the three months ended June 30, 2026, compared to 52.02% for the trailing quarter.

Income tax expense

Income tax expense was $27.9 million, compared to $30.8 million, and the effective tax rate was 26.3%, compared to 27.9%. The decrease in income tax expense was primarily related to a decrease in pre-tax book income, combined with discrete items related to benefits associated with carry-back tax credits, partially offset by the effects of recent legislation adopted by New Jersey with regard to net operating loss usage. The effective tax rate change was primarily related to the aforementioned discrete items.

Second quarter of 2026 compared to the second quarter of 2025:

Net interest income

Net interest income was $202.7 million, compared to $187.1 million. The increase was primarily due to originations of new loans at current market rates, combined with favorable repricing of deposits.
Net interest margin was 3.48%, compared to 3.36%. The yield on interest-earning assets decreased seven basis points to 5.61%, while the cost of interest-bearing liabilities decreased 23 basis points to 2.71%. The cost of total deposits, which includes non-interest bearing deposits, was 1.92%, compared to 2.10%.
Average loans totaled $19.57 billion, an increase of $742.0 million, or 3.94%, primarily due to strong loan growth in the quarter.
Average total deposits totaled $19.23 billion, an increase of $807.8 million, or 4.39%.

Provision for credit losses

The provision for credit losses was $9.3 million, compared to a $2.9 million recapture of previous provisions for credit losses for the same period last year. The provision for credit losses in the second quarter consisted of a $9.6 million provision related to loans, partially offset by a $0.2 million recapture of provision related to off-balance sheet credit exposures, compared with a $2.7 million and a $0.2 million recapture of provision for credit losses on loans and off-balance sheet credit exposures for the same period last year. The increase in the provision for credit losses was primarily due to overall growth in the loan portfolio, combined with an increase in specific reserves on individually evaluated loans.
Net charge-offs were $1.9 million, compared to $1.2 million a year ago, while the ratio of net charge-offs to average loans was 0.04%, compared to 0.03% a year ago.

Non-interest income and non-interest expense

Total non-interest income was $32.0 million, compared to $27.1 million, an increase of $4.9 million. The increase was primarily driven by a $1.5 million increase in fee income, a $1.2 million increase in BOLI income and a $1.1 million increase in other non-interest income. The increase in fee income was primarily related to an increase in loan related fee income. The increase in BOLI income was primarily related to an increase in benefit claims, while the increase in other non-interest income was mainly due to an increase in swap fee income.
Total non-interest expense was $119.3 million, compared to $114.6 million, an increase of $4.6 million. The increase was primarily driven by a $4.0 million increase in compensation and benefits expense, partially due to an increase in severance expense, and $1.5 million related to costs associated with our ongoing core system conversion, partially offset by a $0.9 million decrease in amortization of intangibles primarily due to a scheduled reduction in the rate of core deposit intangible amortization related to the merger with Lakeland.
The Company’s annualized core non-interest expense as a percentage of average assets⁽⁶⁾ totaled 1.85% for the quarter ended June 30, 2026, compared to 1.89% for the same period last year. The core efficiency ratio (core non-interest expense divided by the sum of net interest income and core non-interest income)⁽⁷⁾was 49.75% for the three months ended June 30, 2026, compared to 53.52% for the same period last year.

Income tax expense

Income tax expense was $27.9 million, compared to $30.5 million, and the effective tax rate was 26.3%, compared to 29.7%. The decrease in income tax expense and the effective tax rate was primarily related to discrete items related to benefits associated with carry-back tax credits and purchases of current year tax credits, partially offset by effects of recently adopted New Jersey legislation with regard to net operating loss usage.

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 30, 2026 at 10:00 a.m. Eastern Time to discuss the Company’s financial results for the quarter ended June 30, 2026. The call may be accessed by dialing 1-833-461-5787 (United States Toll Free) and 1-626-884-3620 (United States Local). Speakers will need to enter meeting ID code (216 708 612) 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 2026 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 and the availability of and costs associated with sources of liquidity.

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.

Non-GAAP Financial Measures

⁽¹⁾ Core net income, pre-provision, net-revenue annualized core return on average assets, annualized return on average tangible equity, tangible common equity capital ratio, tangible book value per share, annualized core non-interest expense as a percentage of average assets and the core 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 Statements of Financial Condition
June 30, 2026 (Unaudited) and December 31, 2025
(Dollars in Thousands)

Assets	June 30, 2026			December 31, 2025
Cash and cash equivalents	$	228,293		$	211,484
Available for sale debt securities, at fair value		3,286,456			3,164,756
Held to maturity debt securities, (net of $22,000 allowance as of June 30, 2026 (unaudited) and $16,000 allowance as of December 31, 2025)		266,224			282,127
Equity securities, at fair value		20,108			19,875
Federal Home Loan Bank stock		130,672			115,687
Loans held for sale		5,478			14,710
Loans held for investment		20,045,752			19,504,061
Less allowance for credit losses		184,656			184,767
Net loans		19,866,574			19,334,004
Foreclosed assets, net		963			2,015
Banking premises and equipment, net		112,197			113,328
Accrued interest receivable		98,118			95,798
Intangible assets		765,019			782,152
Bank-owned life insurance		415,256			414,371
Other assets		473,478			445,113
Total assets	$	25,663,358		$	24,980,710

Liabilities and Stockholders' Equity
Deposits:
Demand deposits	$	14,518,916		$	14,402,148
Savings deposits		1,582,750			1,589,259
Certificates of deposit of $250,000 or more		965,698			929,989
Other time deposits		2,477,805			2,357,287
Total deposits		19,545,169			19,278,683
Mortgage escrow deposits		47,779			40,253
Borrowed funds		2,407,532			2,111,955
Subordinated debentures		409,065			406,582
Other liabilities		346,828			310,025
Total liabilities		22,756,373			22,147,498

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 130,423,051 shares outstanding as of June 30, 2026 and 130,619,949 outstanding as of December 31, 2025		1,376			1,376
Additional paid-in capital		1,850,121			1,844,949
Retained earnings		1,250,204			1,154,364
Accumulated other comprehensive loss		(91,933	)		(76,183	)
Treasury stock		(102,783	)		(91,294	)
Total stockholders' equity		2,906,985			2,833,212
Total liabilities and stockholders' equity	$	25,663,358		$	24,980,710


PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Income
Three months ended June 30, 2026, March 31, 2026 and June 30, 2025, and six months ended June 30, 2026 and 2025 (Unaudited)
(Dollars in Thousands, except per share data)

	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
		2026			2026			2025			2026			2025
Interest and dividend income:
Real estate secured loans	$	195,381		$	191,503		$	192,792		$	386,884		$	379,845
Commercial loans		82,757			77,901			78,854			160,658			154,673
Consumer loans		9,953			9,900			10,464			19,852			20,623
Available for sale debt securities, equity securities and Federal Home Loan Bank stock		35,975			33,282			31,444			69,258			61,088
Held to maturity debt securities		1,778			1,794			1,966			3,572			3,962
Deposits, federal funds sold and other short-term investments		751			686			788			1,437			1,463
Total interest income		326,595			315,066			316,308			641,661			621,654

Interest expense:
Deposits		91,803			91,936			96,257			183,739			193,678
Borrowed funds		23,730			21,011			24,470			44,741			42,247
Subordinated debt		8,382			8,376			8,487			16,758			16,907
Total interest expense		123,915			121,323			129,214			245,238			252,832
Net interest income		202,680			193,743			187,094			396,423			368,822
Provision for credit losses		9,334			(2,116	)		(2,888	)		7,218			(2,250	)
Net interest income after provision for credit losses		193,346			195,859			189,982			389,205			371,072

Non-interest income:
Fees		12,259			10,464			10,736			22,722			20,391
Wealth management income		7,517			7,402			6,948			14,920			14,275
Insurance agency income		5,446			6,850			4,942			12,296			10,593
Bank-owned life insurance		3,798			4,034			2,585			7,833			4,678
Net (loss) gain on securities transactions		(309	)		—			—			(309	)		87
Gain on sale of SBA loans		945			745			647			1,690			1,310
Other income		2,317			1,958			1,217			4,275			2,771
Total non-interest income		31,973			31,453			27,075			63,427			54,105

Non-interest expense:
Compensation and employee benefits		67,289			66,196			63,249			133,485			125,615
Net occupancy expense		12,464			14,985			13,011			27,449			26,938
Data processing expense		9,388			9,646			9,599			19,034			19,203
FDIC Insurance		3,155			2,841			3,341			5,995			6,727
Amortization of intangibles		8,559			8,563			9,497			17,122			18,998
Advertising and promotion expense		1,513			938			1,429			2,451			2,489
Core systems conversion expense		1,508			—			—			1,508			—
Other operating expenses		15,382			13,972			14,488			29,355			30,911
Total non-interest expense		119,258			117,141			114,614			236,399			230,881
Net income before income tax expense		106,061			110,171			102,443			216,233			194,296
Income tax expense		27,914			30,754			30,462			58,668			58,287
Net income	$	78,147		$	79,417		$	71,981		$	157,565		$	136,009

Basic earnings per share	$	0.60		$	0.61		$	0.55		$	1.21		$	1.04
Average basic shares outstanding		130,330,787			130,511,676			130,484,287			130,421,508			130,405,490

Diluted earnings per share	$	0.60		$	0.61		$	0.55		$	1.21		$	1.04
Average diluted shares outstanding		130,388,396			130,588,635			130,500,143			130,488,792			130,440,958


PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Quarterly Average Balances
(Dollars in Thousands) (Unaudited)

	June 30, 2026						March 31, 2026						June 30, 2025
	Average Balance		Interest		Average Yield/ Cost		Average Balance		Interest		Average Yield/ Cost		Average Balance		Interest		Average Yield/ Cost
Interest-Earning Assets:
Deposits	$	73,162	$	751	4.09	%	$	76,589	$	686	3.63	%	$	75,714	$	788	4.21	%
Available for sale debt securities		3,272,868		33,637	4.11	%		3,217,568		31,458	3.91	%		2,958,325		29,092	3.93	%
Held to maturity debt securities, net⁽¹⁾		266,727		1,778	2.67	%		273,845		1,794	2.62	%		315,204		1,966	2.49	%
Equity securities, at fair value		19,986		123	2.46	%		19,988		120	2.42	%		19,235		214	4.44	%
Total securities		3,559,581		35,538	3.99	%		3,511,401		33,372	3.80	%		3,292,764		31,272	3.80	%
Federal Home Loan Bank stock		132,390		2,215	6.62	%		120,299		1,704	5.67	%		133,447		2,138	6.44	%
Net loans:⁽²⁾
Total mortgage loans		13,636,285		195,381	5.75	%		13,590,636		191,503	5.70	%		13,398,650		192,792	5.77	%
Total commercial loans		5,327,395		82,757	6.23	%		5,157,785		77,901	6.13	%		4,816,237		78,854	6.57	%
Total consumer loans		605,579		9,953	6.59	%		606,122		9,900	6.62	%		612,418		10,464	6.85	%
Total net loans		19,569,259		288,091	5.90	%		19,354,543		279,304	5.85	%		18,827,305		282,110	6.01	%
Total interest-earning assets	$	23,334,392	$	326,595	5.61	%	$	23,062,832	$	315,066	5.53	%	$	22,329,230	$	316,308	5.68	%

Non-Interest Earning Assets:
Cash and due from banks		162,746						171,092						150,464
Other assets		1,800,478						1,792,490						1,870,114
Total assets	$	25,297,616					$	25,026,414					$	24,349,808

Interest-Bearing Liabilities:
Demand deposits	$	10,674,922	$	63,736	2.39	%	$	10,759,045	$	63,358	2.39	%	$	9,874,149	$	64,803	2.63	%
Savings deposits		1,599,622		814	0.20	%		1,606,554		840	0.21	%		1,647,746		900	0.22	%
Time deposits		3,236,519		27,253	3.38	%		3,230,961		27,738	3.48	%		3,197,374		30,555	3.83	%
Total deposits		15,511,063		91,803	2.37	%		15,596,560		91,936	2.39	%		14,719,269		96,258	2.62	%

Borrowed funds		2,435,404		23,730	3.91	%		2,184,719		21,011	3.90	%		2,490,379		24,470	3.94	%
Subordinated debentures		408,260		8,382	8.23	%		407,019		8,376	8.35	%		403,286		8,487	8.44	%
Total interest-bearing liabilities		18,354,727		123,915	2.71	%		18,188,298		121,323	2.71	%		17,612,934		129,215	2.94	%

Non-Interest Bearing Liabilities:
Non-interest bearing deposits		3,716,104						3,644,605						3,700,132
Other non-interest bearing liabilities		329,223						320,398						352,400
Total non-interest bearing liabilities		4,045,327						3,965,003						4,052,532
Total liabilities		22,400,054						22,153,301						21,665,466
Stockholders' equity		2,897,562						2,873,113						2,684,342
Total liabilities and stockholders' equity	$	25,297,616					$	25,026,414					$	24,349,808

Net interest income			$	202,680					$	193,743					$	187,093

Net interest rate spread					2.90	%					2.82	%					2.74	%
Net interest-earning assets	$	4,979,665					$	4,874,534					$	4,716,296

Net interest margin⁽³⁾					3.48	%					3.40	%					3.36	%

Ratio of interest-earning assets to total interest-bearing liabilities	1.27x						1.27x						1.27x

(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.

	6/30/26		3/31/26		12/31/25		9/30/25		6/30/25
	2nd Qtr.		1st Qtr.		4th Qtr.		3rd Qtr.		2nd Qtr.
Interest-Earning Assets:
Securities	3.99	%	3.80	%	3.87	%	3.89	%	3.81	%
Net loans	5.90	%	5.85	%	5.98	%	6.09	%	6.01	%
Total interest-earning assets	5.61	%	5.53	%	5.66	%	5.76	%	5.68	%

Interest-Bearing Liabilities:
Deposits	2.37	%	2.39	%	2.60	%	2.67	%	2.62	%
Borrowings	3.91	%	3.90	%	3.94	%	3.96	%	3.94	%
Total interest-bearing liabilities	2.71	%	2.71	%	2.83	%	2.96	%	2.94	%

Interest rate spread	2.90	%	2.82	%	2.83	%	2.80	%	2.74	%
Net interest margin	3.48	%	3.40	%	3.44	%	3.43	%	3.36	%

Ratio of interest-earning assets to interest-bearing liabilities	1.27x		1.27x		1.28x		1.27x		1.27x


PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Average Year to Date Balances
(Dollars in Thousands) (Unaudited)

	June 30, 2026						June 30, 2025
	Average				Average		Average				Average
	Balance		Interest		Yield/Cost		Balance		Interest		Yield/Cost
Interest-Earning Assets:
Deposits	$	74,866	$	1,437	3.87	%	$	77,882	$	1,463	4.21	%
Available for sale debt securities		3,245,371		65,095	4.01	%		2,893,373		56,505	3.91	%
Held to maturity debt securities, net⁽¹⁾		270,266		3,572	2.64	%		317,607		3,962	2.50	%
Equity securities, at fair value		19,987		244	2.44	%		19,212		422	3.01	%
Total securities		3,535,624		68,911	3.90	%		3,230,192		60,889	3.75	%
Federal Home Loan Bank stock		126,378		3,919	12.41	%		120,883		4,161	6.92	%
Net loans:⁽²⁾
Total mortgage loans		13,615,283		386,884	5.72	%		13,351,451		379,845	5.73	%
Total commercial loans		5,241,339		160,658	6.18	%		4,747,564		154,673	6.57	%
Total consumer loans		605,872		19,852	6.61	%		610,728		20,623	6.81	%
Total net loans		19,462,494		567,394	5.87	%		18,709,743		555,141	5.98	%
Total interest-earning assets	$	23,199,362	$	641,661	5.60	%	$	22,138,700	$	621,654	5.65	%

Non-Interest Earning Assets:
Cash and due from banks		166,896						142,380
Other assets		1,796,506						1,919,313
Total assets	$	25,162,764					$	24,200,393

Interest-Bearing Liabilities:
Demand deposits	$	10,716,751	$	127,095	2.39	%	$	9,984,248	$	130,235	2.63	%
Savings deposits		1,603,069		1,653	0.21	%		1,665,075		1,824	0.22	%
Time deposits		3,233,756		54,991	3.43	%		3,198,491		61,618	3.88	%
Total deposits		15,553,576		183,739	2.38	%		14,847,814		193,677	2.63	%
Borrowed funds		2,310,754		44,741	3.90	%		2,205,805		42,247	3.86	%
Subordinated debentures		407,643		16,758	8.29	%		402,665		16,907	8.47	%
Total interest-bearing liabilities	$	18,271,973	$	245,238	2.71	%	$	17,456,284	$	252,831	2.92	%

Non-Interest Bearing Liabilities:
Non-interest bearing deposits		3,680,552						3,709,602
Other non-interest bearing liabilities		324,834						373,029
Total non-interest bearing liabilities		4,005,386						4,082,631
Total liabilities		22,277,359						21,538,915
Stockholders' equity		2,885,405						2,661,478
Total liabilities and stockholders' equity	$	25,162,764					$	24,200,393

Net interest income			$	396,423					$	368,823

Net interest rate spread					2.89	%					2.73	%
Net interest-earning assets	$	4,927,389					$	4,682,416

Net interest margin⁽³⁾					3.47	%					3.35	%

Ratio of interest-earning assets to total interest-bearing liabilities	1.27x						1.27x

(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 loans held for sale and 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, 2026		June 30, 2025		June 30, 2024
Interest-Earning Assets:
Securities	3.90	%	3.75	%	2.78	%
Net loans	5.87	%	5.98	%	5.83	%
Total interest-earning assets	5.60	%	5.65	%	5.43	%

Interest-Bearing Liabilities:
Deposits	2.38	%	2.63	%	2.74	%
Borrowings	3.90	%	3.86	%	3.75	%
Total interest-bearing liabilities	2.71	%	2.92	%	2.97	%

Interest rate spread	2.89	%	2.73	%	2.46	%
Net interest margin	3.47	%	3.35	%	3.08	%

Ratio of interest-earning assets to interest-bearing liabilities	1.27x		1.27x		1.26x

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) Core Net Income
	Three months Ended			Six months Ended
	June 30,			June 30,
	2026			2026

Net interest income	$	202,680		$	396,423
Provision for loan losses		9,334			7,218
Net interest income after provision for loan losses	$	193,346		$	389,205

Non-interest income		31,973			63,427

Non-interest expense	$	119,258		$	236,399
Executive severance expense		864			864
Core system conversion expense		1,508			1508
Core non-interest expense	$	116,886		$	234,027

Income taxes		27,914			58,668
Income tax of non-core items		663			663
Core net income	$	79,856		$	159,274
Avg. diluted shares outstanding for the 3 and 6 months ended June 30, 2026		130,388,396			130,488,792
Core diluted earnings per share	$	0.61		$	1.22


(2) Annualized core pre-provision net revenue ("PPNR") returns on average assets, average equity and average tangible equity
	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2026			2026			2025			2025			2025
Net income	$	78,147		$	79,417		$	83,431		$	71,720		$	71,981
Adjustments to net income:
Provision for credit losses		9,334			(2,116	)		(1,213	)		7,044			(2,888	)
Write-down on ORE property		—			—			—			—			—
Executive severance expense		864			—			—			—			—
Core system conversion expense		1,508			—			—			—			—
Income tax expense		27,914			30,754			28,814			29,895			30,462
Core PPNR	$	117,767		$	108,055		$	111,032		$	108,659		$	99,555

Annualized core PPNR income	$	472,362		$	438,223		$	440,507		$	431,093		$	399,314

Core diluted earnings per share	$	130,388,396		$	130,588,635		$	130,589,271		$	130,553,819		$	130,500,143
Core PPNR Diluted EPS	$	0.90		$	0.83		$	0.85		$	0.83		$	0.76

Average assets	$	25,297,616		$	25,026,414		$	24,775,214		$	24,518,290		$	24,349,808
Average equity	$	2,897,562		$	2,873,113		$	2,810,166		$	2,738,414		$	2,684,342
Average tangible equity	$	2,126,989		$	2,093,975		$	2,022,451		$	1,941,625		$	1,877,923

Annualized core PPNR return on average assets		1.87	%		1.75	%		1.78	%		1.76	%		1.64	%
Annualized core PPNR return on average equity		16.30	%		15.25	%		15.68	%		15.74	%		14.88	%
Annualized core PPNR return on average tangible equity		22.21	%		20.93	%		21.78	%		22.20	%		21.26	%

(3) Annualized Core Return on Average Assets, Average Equity and Average Tangible Equity
	For the Quarter Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2026			2026			2025			2025			2025
Net Income	$	78,147		$	79,417			83,431			71,720		$	71,981
Executive severance expense		864			—			—			—			—
Core system conversion expense		1,508			—			—			—			—
Less: income tax expense		(663	)		—			—			—			—
Annualized core net income	$	79,856			79,417			83,431			71,720			71,981
Plus: Amortization of Intangibles (net of tax)		6,167			6,170			6,180			6,639			6,639
Annualized core net income for annualized core return on average tangible equity	$	86,023		$	85,587		$	89,611		$	78,359		$	78,620

Average assets	$	25,297,616		$	25,026,414		$	24,775,214		$	24,518,290		$	24,349,808
Average equity	$	2,897,562		$	2,873,113		$	2,810,166		$	2,738,414		$	2,684,342
Average tangible equity	$	2,126,989		$	2,093,975		$	2,022,451		$	1,941,625		$	1,877,923

Annualized Core Return on Average Assets		1.27	%		1.29	%		1.34	%		1.16	%		1.19	%
Annualized Core Return on Average Equity		11.05	%		11.21	%		11.78	%		10.39	%		10.76	%
Annualized Core Return on Average Tangible Equity		16.22	%		16.58	%		17.58	%		16.01	%		16.79	%

(4) Tangible Common Equity Ratio, Book and Tangible Book Value per Share
	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2026			2026			2025			2025			2025
Total assets	$	25,663,358		$	25,201,690		$	24,980,710		$	24,832,763		$	24,547,286
Less: total intangible assets		765,019			773,585			782,152			790,729			800,232
Total tangible assets	$	24,898,339		$	24,428,105		$	24,198,558		$	24,042,034		$	23,747,054

Total stockholders' equity	$	2,906,985		$	2,862,869		$	2,833,212		$	2,767,035		$	2,707,555
Less: total intangible assets		765,019			773,585			782,152			790,729			800,232
Total tangible stockholders' equity	$	2,141,966		$	2,089,284		$	2,051,060		$	1,976,306		$	1,907,323

Tangible common equity ratio		8.60	%		8.55	%		8.48	%		8.22	%		8.03	%
Shares outstanding		130,423,051		$	130,311,796		$	130,619,949		$	130,621,757		$	130,624,243

Book value per share (total stockholders' equity/shares outstanding)	$	22.29		$	21.97		$	21.69		$	21.18		$	20.73
Tangible book value per share (total tangible stockholders' equity/shares outstanding)	$	16.42		$	16.03		$	15.70		$	15.13		$	14.60

(5) Annualized Return on Average Tangible Equity
	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2026			2026			2025			2025			2025
Total average stockholders' equity	$	2,897,562		$	2,873,113		$	2,810,166		$	2,738,414		$	2,684,342
Less: total average intangible assets		770,573			779,138			787,715			796,789			806,419
Total average tangible stockholders' equity	$	2,126,989		$	2,093,975		$	2,022,451		$	1,941,625		$	1,877,923

Net income	$	78,147		$	79,417		$	83,431		$	71,720		$	71,981
Plus: Amortization of Intangibles, net of tax		6,167		$	6,170		$	6,180		$	6,639		$	6,639
Total net income	$	84,314		$	85,587		$	89,611		$	78,359		$	78,620

Annualized return on average tangible equity (net income/total average tangible stockholders' equity)		15.90	%		16.58	%		17.58	%		16.01	%		16.79	%

(6) Annualized Core Non-Interest Expense to Average Assets
	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2026			2026			2025			2025			2025
Reported non-interest expense	$	119,258		$	117,141		$	114,690		$	113,092		$	114,614
Adjustments to non-interest expense:
Executive severance expense		864			—			—			—			—
Core system conversion expense		1,508			—			—			—			—
Core non-interest expense	$	116,886		$	117,141		$	114,690		$	113,092		$	114,614

Annualized core non-interest expense	$	468,828		$	475,072		$	455,020		$	448,680		$	459,715

Average assets	$	25,297,616		$	25,026,414		$	24,775,214		$	24,518,290		$	24,349,808

Annualized core non-interest expense/average assets		1.85	%		1.90	%		1.84	%		1.83	%		1.89	%

(7) Core Efficiency Ratio Calculation
	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2026			2026			2025			2025			2025
Net interest income	$	202,680		$	193,743		$	197,411		$	194,332		$	187,094
Reported non-interest income		31,973			31,453			28,311			27,419			27,075
Adjustments to non-interest income:
Net (loss) gain on securities transactions		309			—			(690	)		(67	)		—
Core non-interest income		32,282			31,453			27,621			27,352			27,075
Total core income	$	234,962			225,196			225,032			221,684			214,169

Core non-interest expense	$	116,886			117,141			114,690			113,092			114,614

Core Efficiency ratio (core non-interest expense/core income)		49.75	%		52.02	%		50.97	%		51.01	%		53.52	%

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

FAQ

How did Provident Financial Services (PFS) perform in Q2 2026 earnings?

Provident reported Q2 2026 net income of $78.1 million, or $0.60 per share. According to the company, this compared with $72.0 million, or $0.55 per share, in Q2 2025, reflecting higher net interest income and record non-interest income.

What was Provident Financial Services' core profitability and net interest margin in Q2 2026?

Provident’s Q2 2026 net interest margin was 3.48%, with core net interest margin of 3.09%. According to the company, annualized core ROAA reached 1.27% and core PPNR ROAA was 1.87%, supported by growth in earning assets and improved core margin.

How did loans and deposits change for Provident Financial Services (PFS) as of June 30, 2026?

Total loans reached $20.05 billion and deposits were $19.55 billion at June 30, 2026. According to the company, commercial loans grew, loan funding totaled $5.28 billion year-to-date, and savings plus demand deposits increased to $16.10 billion compared with December 31, 2025.

What is the asset quality profile of Provident Financial Services as of Q2 2026?

Non-performing loans were $136.9 million, or 0.68% of total loans, as of June 30, 2026. According to the company, annualized net charge-offs were 0.04% of average loans and the allowance for credit losses was 0.92% of total loans.

What are Provident Financial Services' key capital ratios and tangible book value in Q2 2026?

Tangible book value per share was $16.42, and the tangible common equity ratio was 8.60% at June 30, 2026. According to the company, Common Equity Tier 1 and Total Risk-Based Capital ratios at Provident Bank were 12.1% and 13.0%, respectively.

Did Provident Financial Services (PFS) repurchase stock in the first half of 2026?

Provident repurchased 614,722 shares in the six months ended June 30, 2026, at an average cost of $21.09 per share. According to the company, 25,799 shares were repurchased in Q2 alone, and about 2.20 million shares remained authorized.

How much of Provident Financial Services' revenue came from non-interest income in Q2 2026?

Non-interest income totaled a record $32.0 million in Q2 2026. According to the company, non-interest income represented nearly 14% of total revenues, driven by higher loan-related fees, swap fees, and increased wealth management and insurance agency income.