Provident Financial Services, Inc. Reports Third Quarter Earnings

Deposit growth and higher net interest income accompanied lower quarterly earnings and an increase in non-performing loans.

Rhea-AI Summary

Provident Financial Services (PFS) reported third-quarter 2026 net income of $69.2 million, down from both the preceding quarter and a year earlier. Earnings per share were $0.53, compared with $0.60 in the second quarter and $0.55 a year earlier. Results included a $17.5 million debt-extinguishment loss, $3.7 million in core conversion costs and $465,000 in branch restructuring expenses. Adjusted core net income was $84.3 million, or $0.65 per share.

Net interest income increased $13.7 million year over year to $208.0 million, while net interest margin reached 3.50%. Deposits rose $261.7 million during the quarter to $19.81 billion. Non-performing loans increased to $140.1 million from $136.9 million in June. Tangible common equity fell 20 basis points to 8.40%, affected by an $83.0 million reduction in accumulated other comprehensive income. Nine-month net income rose to $226.7 million from $207.7 million a year earlier.

23 points · 0 major

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Rhea-AI Sentiment measures something else, the tone of the wording.

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0 major · 22 points

How the balance works

Positive

• Moderate pointNine-month net income rose to $226.7 million, or $1.74 per share, from $207.7 million, or $1.59, a year earlier.
• Moderate pointNet interest income increased $13.7 million year over year to $208.0 million in the third quarter.
• Moderate pointNet interest margin reached 3.50%, versus 3.48% in the preceding quarter and 3.43% a year earlier.
• Moderate pointCore net interest margin rose 7 basis points sequentially and 22 basis points year over year to 3.16%.
• Moderate pointCore pre-provision net revenue, before credit-loss provisions, rose to $119.5 million from $108.7 million a year earlier.
• Moderate pointCore return on average assets rose to 1.30%, versus 1.27% sequentially and 1.16% a year earlier.
• Moderate pointDeposits increased $261.7 million, or 5.31% annualized, during the quarter to $19.81 billion.
• Moderate pointLoan pipeline totaled $3.03 billion, with a weighted average interest rate approaching 6.50%.
• Moderate pointLoans held for investment increased to $20.17 billion from $19.50 billion at December 31, 2025.
• Moderate pointLoan funding, including credit-line advances, totaled $7.84 billion through September, versus $7.00 billion in the comparable 2025 period.

13 minor points

• Minor pointAdjusted core net income totaled $84.3 million, or $0.65 per share, for the quarter.
• Minor pointNine-month adjusted core net income totaled $243.5 million, or $1.87 per share.
• Minor pointCore return on average equity rose to 11.44%, versus 11.05% sequentially and 10.39% a year earlier.
• Minor pointCore return on average tangible equity rose to 16.57%, versus 16.18% sequentially and 16.01% a year earlier.
• Minor pointCore deposits, excluding certificates and wholesale deposits, grew $233.7 million, or 5.76% annualized, to $15.42 billion.
• Minor pointLoan-to-deposit ratio decreased to 101.8% from 102.6% in June, primarily reflecting higher non-maturity core business deposits.
• Minor pointCommercial loans, including commercial property lending and warehouse lines, increased 3.4% annualized during the quarter.
• Minor pointCommercial property and commercial business loan pipelines each exceeded $1.0 billion for the third consecutive quarter.
• Minor pointProvident Bank capital ratios exceeded well-capitalized levels: Common Equity Tier One 12.5%; total risk-based capital 13.4%.
• Minor pointBook value per share rose to $21.96 from $21.69 at December 31, 2025.
• Minor pointStockholders’ equity increased to $2.86 billion from $2.83 billion at December 31, 2025.
• Minor pointQuarterly net charge-off rate was 0.05% annualized, versus 0.04% sequentially and 0.11% a year earlier.
• Minor pointCore conversion was completed during the quarter.

Negative

• Moderate pointQuarterly net income fell to $69.2 million from $78.1 million sequentially and $71.7 million a year earlier.
• Moderate pointDebt-extinguishment loss totaled $17.5 million from accelerated amortization of purchase accounting adjustments.
• Moderate pointNon-performing loans rose to $140.1 million, versus $136.9 million in June and $78.4 million at year-end.
• Moderate pointTangible common equity ratio fell 20 basis points sequentially to 8.40%, alongside an $83.0 million accumulated-other-comprehensive-income reduction.
• Moderate pointBorrowed funds rose to $2.39 billion from $2.11 billion at year-end, funding asset growth and seasonal deposit outflows.
• Moderate pointMunicipal deposits decreased $527.3 million from year-end, primarily from seasonal outflows; brokered demand deposits increased $432.5 million.
• Moderate pointReturn on average assets fell to 1.07%, versus 1.24% sequentially and 1.16% a year earlier.

15 minor points

• Minor pointQuarterly earnings per share fell to $0.53 from $0.60 sequentially and $0.55 a year earlier.
• Minor pointCore conversion costs totaled $3.7 million during the quarter.
• Minor pointBranch restructuring expenses totaled $465,000 during the quarter.
• Minor pointNon-performing loan ratio reached 0.69%, versus 0.68% in June and 0.40% at year-end.
• Minor pointNon-performing assets ratio rose to 0.55%, versus 0.54% in June and 0.41% a year earlier.
• Minor pointImpaired loans rose to $126.2 million from $121.2 million in June; specific reserves increased to $6.6 million.
• Minor pointTangible book value per share declined sequentially to $16.16, but exceeded $15.70 at December 31, 2025.
• Minor pointSavings deposits decreased $137.6 million from December 31, 2025.
• Minor pointAverage interest-bearing liability cost reached 2.79%, versus 2.71% sequentially, but below 2.96% a year earlier.
• Minor pointReturn on average equity fell to 9.39%, versus 10.82% sequentially and 10.39% a year earlier.
• Minor pointReturn on average tangible equity fell to 13.80%, versus 15.87% sequentially and 16.01% a year earlier.
• Minor pointCore efficiency ratio increased sequentially to 49.93% from 49.75%, but improved from 51.01% a year earlier.
• Minor pointAnnualized core pre-provision return on assets fell sequentially to 1.85% from 1.87%, but exceeded 1.76% a year earlier.
• Minor pointAnnualized core pre-provision return on equity fell sequentially to 16.22% from 16.30%, but exceeded 15.74% a year earlier.
• Minor pointAnnualized core pre-provision return on tangible equity fell to 23.51%, versus 23.82% sequentially and 24.14% a year earlier.

News Explained

At September 30, 2026, borrowings were 9.2% of assets, with part of the increase used to replace seasonal municipal deposit outflows.

The company says its previously announced core conversion was completed during the quarter. Borrowed funds totaled $2.39 billion at September 30, 2026, up from $2.11 billion at December 31, 2025; the increase was largely used to fund asset growth and replace seasonal municipal deposit outflows.

Borrowings were 9.2% of total assets, compared with 8.5% at December 31, 2025; the loan-to-deposit ratio was 101.8% at quarter-end, down from 102.6% at June 30, 2026.

Key Figures

Quarterly net income: $69.2 million; $0.53 per share Nine-month net income: $226.7 million; $1.74 per share Specified quarter expenses: $17.5 million debt-extinguishment loss; $3.7 million core conversion costs; $465,000 branch restructuring expenses +5 more

Quarterly net income

$69.2 million; $0.53 per share

Q3 2026; compared with $71.7 million and $0.55 per share in Q3 2025

Nine-month net income

$226.7 million; $1.74 per share

Nine months ended September 30, 2026; compared with $207.7 million and $1.59 per share in 2025

Specified quarter expenses

$17.5 million debt-extinguishment loss; $3.7 million core conversion costs; $465,000 branch restructuring expenses

Q3 2026

Core net income

$84.3 million; $0.65 per share

Q3 2026, excluding specified expenses

Core PPNR

$119.5 million; $0.92 per share

Q3 2026, compared with $108.7 million and $0.83 per share in Q3 2025

Core net interest margin

3.16%; up 7 basis points quarter over quarter and 22 basis points year over year

Q3 2026

Net interest income

$208.0 million; increased $13.7 million

Q3 2026 compared with the prior-year quarter

Total deposits

$19.81 billion; increased 5.31% annualized quarter over quarter

As of September 30, 2026

Previous Earnings Reports

2 past events · Latest: Jul 29

Same Type 2 events

1. Jul 29

   Q2 2026 earnings

   24h Move

   +3.3%

   Q2 net income was $78.1 million, with core PPNR of $117.8 million.

2. Oct 29

   Q3 2025 earnings

   24h Move

   -0.4%

   Q3 net income was $71.7 million, alongside record quarterly revenue of $221.8 million.

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

Key Terms

ppnr, roaa, tbv, aoci

4 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.

tbv financial

"tangible book value ("TBV") per share"

Tangible book value (TBV) is a measure of a company’s net asset value that equals total shareholders’ equity minus intangible assets and goodwill; it shows the book value tied to physical and financial assets only. It is often expressed per share (tangible book value per share) by dividing TBV by shares outstanding; because it removes intangibles it can understate the value of brands, patents, or technology and may be negative if liabilities exceed tangible assets.

aoci financial

"Accumulated Other Comprehensive Income ("AOCI")"

Accumulated Other Comprehensive Income (AOCI) is a section of owners’ equity that records certain unrealized gains and losses that aren’t shown in the company’s regular profit and loss statement—things like currency translation shifts, changes in the value of certain investments, or pension plan adjustments. Think of it as a separate holding jar for value swings the company hasn’t cashed in yet; investors watch it because large or volatile balances can change reported net worth and signal future earnings or balance-sheet risk when those items are realized.

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

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ISELIN, N.J., Oct. 28, 2026 (GLOBE NEWSWIRE) -- Provident Financial Services, Inc. (NYSE: PFS) (the “Company”) reported net income of $69.2 million, or $0.53 per basic and diluted share for the three months ended September 30, 2026, compared to $78.1 million, or $0.60 per basic and diluted share, for the three months ended June 30, 2026 and $71.7 million, or $0.55 per basic and diluted share, for the three months ended September 30, 2025. For the nine months ended September 30, 2026, net income totaled $226.7 million, or $1.74 per basic and diluted share, compared to $207.7 million, or $1.59 per basic and diluted share, for the nine months ended September 30, 2025. Results for the quarter were impacted by a $17.5 million one-time loss on extinguishment of debt due to the accelerated amortization of purchase accounting adjustments, core conversion related costs of $3.7 million and $465,000 of branch restructuring expenses. Excluding these expenses, core net income ⁽¹⁾ for the three and nine months ended September 30, 2026, totaled $84.3 million, or $0.65 per basic and diluted share, and $243.5 million, or $1.87 per basic and diluted share, respectively.

Core pre-provision, net revenue ("PPNR") ⁽²⁾ for the three months ended September 30, 2026 was $119.5 million, or $0.92 per basic and diluted share, for the three months ended September 30, 2026, compared to $108.7 million, or $0.83 per basic and diluted share, for the three months ended September 30, 2025.

Anthony J. Labozzetta, President and Chief Executive Officer commented, “We continued our strong performance, delivering another quarter of solid financial results including record revenues. Building momentum in both our spread and fee-based businesses drove 10% year-over-year growth in our pre-provision net revenue, while core deposits grew nearly 6% annualized. During the quarter, we successfully completed our previously-announced core conversion, while also maintaining an adjusted efficiency ratio below 50%. Our robust loan pipeline and strong asset quality leave me optimistic that we will keep driving profitable organic growth going forward."

Key Points for the Third Quarter

• Expanding Core Profitability with Record Revenue
  • The Company's annualized returns on average assets, average equity and average tangible equity were 1.07%, 9.39% and 13.80% for the quarter ended September 30, 2026.
  • Annualized core return on average assets ("ROAA") ⁽³⁾ and net interest margin improved to 1.30% and 3.50%, respectively, from 1.16% and 3.43% in the prior year quarter. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 19 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 7 basis points from the trailing quarter to 3.16% and 22 basis points from the prior year quarter.
  • Core PPNR ⁽²⁾ grew $10.8 million from the prior year quarter, resulting in a 9 basis point expansion of PPNR ROAA to 1.85%. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 18 of the earnings release.
  • Record net-interest income increased $13.7 million to $208.0 million when compared to the prior year quarter, driven primarily by growth in our earning assets and an expanded net interest margin.
• Strong Deposit Growth and Steady Capital Strengthening the Balance Sheet
  • The Company's total deposits increased $261.7 million or 5.31% annualized quarter over quarter, to $19.81 billion as of September 30, 2026, while total core deposits, which exclude certificates of deposit and wholesale deposits, increased $233.7 million, or 5.76% annualized, to $15.42 billion as of September 30, 2026.  
  • The Company's loan-to-deposit ratio decreased slightly to 101.8% as of September 30, 2026, compared to 102.6% as of June 30, 2026. The primary reason for the decrease in the loan-to-deposit ratio was due to an increase in non-maturity core business deposits.
  • Compared to the prior quarter, tangible book value ("TBV") per share ⁽⁴⁾ declined slightly to $16.16, while the tangible common equity ("TCE") ratio ⁽⁴⁾ declined 20 basis points to 8.40%, both of which were impacted by an $83.0 million reduction in Accumulated Other Comprehensive Income ("AOCI").
  • Common Equity Tier One and Total Risk Based Capital ratios for Provident Bank were above well-capitalized at 12.5% and 13.4% as of September 30, 2026, respectively.
  • The Company's adjusted CRE concentration ratio, excluding purchase accounting adjustments as of September 30, 2026, was 399.4%.
• Strong Loan Growth Trends with Low Net Charge-Offs
  • Total commercial loans, including mortgage warehouse lines, commercial mortgage, multi-family and construction loans, increased 3.4% annualized for the quarter.
  • Our pipeline totaled $3.03 billion as of September 30, 2026, with a weighted average interest rate approaching 6.50%. Both the CRE and C&I pipelines exceeded $1.0 billion for the third consecutive quarter, reflecting the investments we have made in our commercial banking group to generate sustainable, diversified loan growth.
  • Net charge-offs of $2.4 million and $7.4 million for both the quarter and nine months ended September 30, 2026, represent an annualized 5 basis points of average loans for both periods.

Third Quarter 2026 Financial Highlights and Key Performance Indicators (KPIs):
		For the Quarter Ended
		September 30,			June 30,			March 31,			December 31,			September 30,
		2026			2026			2026			2025			2025
Annualized return on average assets		1.07	%		1.24	%		1.29	%		1.34	%		1.16	%
Annualized core return on average assets (3)		1.30	%		1.27	%		1.29	%		1.34	%		1.16	%
Annualized return on average equity		9.39	%		10.82	%		11.21	%		11.78	%		10.39	%
Annualized core return on average equity (3)		11.44	%		11.05	%		11.21	%		11.78	%		10.39	%
Annualized return on average tangible equity (5)		13.80	%		15.87	%		16.54	%		17.54	%		16.01	%
Annualized core return on average tangible equity (3)		16.57	%		16.18	%		16.54	%		17.54	%		16.01	%
Annualized core non-interest expense to average assets (6)		1.84	%		1.85	%		1.90	%		1.84	%		1.83	%
Core efficiency ratio (7)		49.93	%		49.75	%		52.02	%		50.97	%		51.01	%
Non-performing loans to total loans		0.69	%		0.68	%		0.73	%		0.40	%		0.52	%
Non-performing assets to total assets		0.55	%		0.54	%		0.58	%		0.32	%		0.41	%
Allowance for loan losses to total non-performing loans		135.20	%		134.87	%		123.84	%		235.61	%		186.21	%
Allowance for loan losses to total loans		0.94	%		0.92	%		0.90	%		0.95	%		0.97	%
Annualized net loan charge-offs to average total loans		0.05	%		0.04	%		0.06	%		0.09	%		0.11	%
Average yield on interest-earning assets		5.68	%		5.61	%		5.53	%		5.66	%		5.76	%
Average cost of interest-bearing liabilities		2.79	%		2.71	%		2.71	%		2.83	%		2.96	%
Net interest margin		3.50	%		3.48	%		3.40	%		3.44	%		3.43	%
Annualized core PPNR return on average assets (2)		1.85	%		1.87	%		1.75	%		1.78	%		1.76	%
Annualized core PPNR return on average equity (2)		16.22	%		16.30	%		15.25	%		15.68	%		15.74	%
Annualized core PPNR return on average tangible equity (2)		23.51	%		23.82	%		22.59	%		23.46	%		24.14	%

Balance Sheet Summary

Assets:

• Total assets as of September 30, 2026 were $25.85 billion, compared to $24.98 billion as of December 31, 2025.
  • Total investment securities were $3.56 billion as of September 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 $20.17 billion as of September 30, 2026, and $19.50 billion as of December 31, 2025, with net increases of $394.0 million of commercial loans, $206.0 million of commercial mortgage loans, $174.4 million of multi-family loans and $32.7 million of construction loans, partially offset by net decreases of $74.0 million of mortgage warehouse lines, $62.9 million of residential mortgage loans and $1.5 million of consumer loans.
    • Total commercial loans, including mortgage warehouse lines, commercial mortgage, multi-family and construction loans, represented 87.5% of the loan portfolio as of September 30, 2026, compared to 86.7% as of December 31, 2025.
    • Loan funding, including advances on lines of credit, totaled $7.84 billion as of September 30, 2026, compared with $7.00 billion for the same period in 2025.   
    • The Company’s unfunded loan commitments totaled $3.95 billion, including commitments of $2.24 billion in commercial loans, $677.8 million in construction loans and $335.1 million in commercial mortgage loans. Unfunded loan commitments as of December 31, 2025 and September 30, 2025 were $3.71 billion and $3.82 billion, respectively.

	September 30, 2026				June 30, 2026				December 31, 2025
	(Dollars in thousands)
Mortgage loans:
Commercial	$	7,604,830			$	7,502,579			$	7,398,792
Multi-family		3,841,754				3,806,823				3,667,337
Construction		694,807				638,933				662,112
Residential		1,911,472				1,938,704				1,974,324
Total mortgage loans		14,052,863				13,887,039				13,702,565
Commercial loans		5,237,467				5,251,096				4,843,466
Mortgage warehouse lines		283,093				313,934				357,051
Consumer loans		610,970				607,373				612,431
Total gross loans		20,184,393				20,059,442				19,515,513
Premiums on purchased loans		1,676				1,663				1,524
Net deferred fees and unearned discounts		(15,999	)			(15,353	)			(12,976	)
Total loans	$	20,170,070			$	20,045,752			$	19,504,061

Liabilities and Capital:

• Total deposits were $19.81 billion as of September 30, 2026, compared to $19.28 billion as of December 31, 2025. Total savings and demand deposit accounts increased $590.5 million to $16.58 billion as of September 30, 2026, while total time deposits decreased $62.4 million to $3.22 billion as of September 30, 2026. The increase in savings and demand deposits was largely attributable to a $408.5 million increase in money market deposits, a $176.1 million increase in interest-bearing demand deposits and a $143.5 million increase in non-interest bearing demand deposits, partially offset by a $137.6 million decrease in savings deposits. Within interest-bearing demand deposits, municipal deposits decreased $527.3 million, primarily due to seasonal outflows. To assist in funding the aforementioned seasonal outflows, brokered demand deposits increased by $432.5 million.  

		September 30, 2026			June 30, 2026		December 31, 2025
		(Dollars in thousands)
Non-interest bearing		$	3,857,790		3,808,318		3,714,253
Savings			1,451,633		1,582,750		1,589,259
Money market			4,101,755		4,044,648		3,693,285
Negotiable Order of Withdrawal ("NOW")			7,170,752		6,665,950		6,994,610
Certificates of deposit			3,224,905		3,443,503		3,287,276
Total deposits		$	19,806,835		19,545,169		19,278,683

• Borrowed funds totaled $2.39 billion as of September 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 replace seasonal outflows in municipal deposits. Borrowed funds represented 9.2% of total assets as of September 30, 2026, an increase from 8.5% as of December 31, 2025.
• Stockholders’ equity totaled $2.86 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 months ended September 30, 2026, common stock repurchases totaled 1,464 shares at an average cost of $24.44 per share, all of which were made in connection with withholding to cover income taxes on the vesting of stock-based compensation. For the nine months ended September 30, 2026, common stock repurchases totaled 616,186 shares at an average cost of $21.10 per share. As of September 30, 2026, approximately 2,198,007 shares remained eligible for repurchase under the current stock repurchase authorization.
  • Book value per share and TBV per share⁽⁴⁾ as of September 30, 2026 were $21.96 and $16.16, 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 September 30, 2026 were $140.1 million, or 0.69% of total loans held for investment, compared to $136.9 million, or 0.68% of total loans as of June 30, 2026 and $78.4 million, or 0.40% of total loans as of December 31, 2025. The allowance for credit losses on loans represented 135.20% of non-performing loans, compared to 123.84% at December 31, 2025, and 186.21% at September 30, 2025.
• As of September 30, 2026, impaired loans totaled $126.2 million with related specific reserves of $6.6 million, compared with impaired loans totaling $121.2 million with related specific reserves of $3.8 million as of June 30, 2026. As of December 31, 2025, impaired loans totaled $63.3 million with related specific reserves of $5.9 million.
• As of September 30, 2026, the Company’s allowance for credit losses related to the loan portfolio was 0.94% of total loans, compared to 0.92% and 0.95% as of June 30, 2026 and December 31, 2025, respectively. The allowance for credit losses increased $4.7 million to $189.5 million as of September 30, 2026, from $184.8 million as of December 31, 2025. The increase in the allowance for credit losses on loans as of September 30, 2026 compared to December 31, 2025 was due to a $12.1 million provision for credit losses on loans, partially offset by net charge-offs of $7.4 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.

		September 30, 2026						June 30, 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		4		$	1,561			3		$	2,301			8		$	15,652
Multi-family mortgage loans		—			—			1			1,570			—			—
Construction loans		—			—			—			—			—			—
Residential mortgage loans		39			9,926			27			6,393			34			8,344
Total mortgage loans		43			11,487			31			10,264			42			23,996
Commercial loans		2			187			5			1,474			9			1,303
Consumer loans		52			3,559			31			1,401			49			2,209
Total 30 to 59 days past due		97		$	15,233			67		$	13,139			100		$	27,508
60 to 89 days past due:
Commercial mortgage loans		1		$	190			—		$	—			—		$	—
Multi-family mortgage loans		—			—			—			—			1			932
Construction loans		—			—			—			—			—			—
Residential mortgage loans		20			5,731			20			5,929			16			4,177
Total mortgage loans		21			5,921			20			5,929			17			5,109
Commercial loans		4			477			4			828			3			633
Consumer loans		16			792			13			1,577			14			781
Total 60 to 89 days past due		41			7,190			37			8,334			34			6,523
Total accruing past due loans		138		$	22,423			104		$	21,473			134		$	34,031
Non-accrual:
Commercial mortgage loans		6		$	21,034			8		$	21,338			11		$	26,856
Multi-family mortgage loans		2			1,831			1			266			3			2,268
Construction loans		1			1,781			1			2,854			1			5,159
Residential mortgage loans		21			5,947			32			7,834			32			9,062
Total mortgage loans		30			30,593			42			32,292			47			43,345
Commercial loans		77			107,691			71			103,383			28			33,219
Consumer loans		22			1,858			17			1,210			27			1,856
Total non-accrual loans		129		$	140,142			130		$	136,885			102		$	78,420
Non-performing loans to total loans held for investment					0.69	%					0.68	%					0.40	%
Allowance for loan losses to total non-performing loans					135.20	%					134.87	%					235.61	%
Allowance for loan losses to total loans					0.94	%					0.92	%					0.95	%

As of September 30, 2026 and December 31, 2025, the Company held foreclosed assets of $1.0 million and $2.0 million, respectively. Foreclosed assets as of September 30, 2026 was comprised of one commercial real estate property. Total non-performing assets at September 30, 2026 increased $60.7 million to $141.1 million, or 0.55% of total assets, from $80.4 million, or 0.32% of total assets at December 31, 2025.

Results of Operations

Third quarter of 2026 compared to the second quarter of 2026:

Net interest income

• Net interest income was $208.0 million, compared to $202.7 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 3.50%, compared to 3.48%. The yield on interest-earning assets increased 7 basis points to 5.68%, while the cost of interest-bearing liabilities increased 8 basis points to 2.79%. The cost of total deposits, which includes non-interest bearing deposits, was 2.02%, compared to 1.92% for the trailing quarter.
• Average loans totaled $19.88 billion, an increase of $311.9 million, or 6.37%, primarily due to strong growth within our total commercial portfolio in the quarter.
• Average total deposits totaled $20.03 billion compared to $19.23 billion.

Provision for credit losses

• The provision for credit losses was $5.2 million, compared to $9.3 million. The provision for credit losses in the current quarter consisted of a $7.2 million provision related to loans, partially offset by a $2.0 million recapture of provision related to off-balance sheet credit exposures, compared with a $9.6 million of provision for credit losses on loans, partially offset by a $248,000 recapture of provision related to off-balance sheet credit exposures. The additional provision for credit losses on loans in the current quarter was primarily due to an increase in specific reserves on individually evaluated loans, combined with overall growth in the loan portfolio.
• Net charge-offs were $2.4 million, compared to $1.9 million, while the ratio of net charge-offs to average loans was 0.05%, compared to 0.04%.

Non-interest income and non-interest expense

• Total non-interest income was $30.5 million, compared to $32.0 million, a decrease of $1.4 million. The decrease was primarily driven by a $2.0 million decrease in fee income, a $1.4 million decrease in other income, and a $935,000 decrease in insurance agency income, partially offset by a $2.7 million increase in BOLI income. The decrease in fee income was primarily related to decreases in loan related fee income and deposit fee income. The decrease in other income was primarily related to decreases in other securities and swap-related fee income, while the decrease in insurance agency income was mainly due to normal seasonality of business activity in the current quarter. The increase in BOLI income was primarily related to an increase in benefit claims.
• Total non-interest expense was $140.7 million, compared to $119.3 million, an increase of $21.4 million. The increase was mainly due to a $17.5 million loss related to the extinguishment of subordinated debt, a $2.2 million increase related to costs associated with our successful core system conversion, and a $1.0 million increase in data processing expense, which was primarily due to an increase in software maintenance expense.
• The Company’s annualized core non-interest expense as a percentage of average assets⁽⁶⁾ totaled 1.84%, compared to 1.85%. The core efficiency ratio (core non-interest expense divided by the sum of net interest income and core non-interest income)⁽⁷⁾ was 49.93%, compared to 49.75%.

Income tax expense

• Income tax expense was $23.5 million with an effective tax rate of 25.3%, compared to $27.9 million with an effective tax rate of 26.3%. 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. The effective tax rate change was primarily related to the aforementioned discrete items.

Third quarter of 2026 compared to the third quarter of 2025:

Net interest income

• Net interest income was $208.0 million, compared to $194.3 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 3.50%, compared to 3.43%. The yield on interest-earning assets was unchanged at 5.68%, while the cost of interest-bearing liabilities decreased 17 basis points to 2.79%. The cost of total deposits, which includes non-interest bearing deposits, was 2.02%, compared to 2.10%, for the same period last year.
• Average loans totaled $19.88 billion, an increase of $974.4 million, or 5.15%, primarily due to strong loan growth in the quarter.
• Average total deposits totaled $20.03 billion, an increase of $1.61 billion, or 8.72%.

Provision for credit losses

• The provision for credit losses was $5.2 million, compared to $7.0 million. The provision for credit losses in the current quarter consisted of a $7.2 million provision related to loans, partially offset by a $2.0 million recapture of provision related to off-balance sheet credit exposures, compared with a $4.5 million and a $2.5 million provision for credit losses on loans and off-balance sheet credit exposures. The increase in the provision for credit losses was primarily due to an increase in specific reserves on individually evaluated loans, combined with overall growth in the loan portfolio.
• Net charge-offs were $2.4 million, compared to $5.4 million, while the ratio of net charge-offs to average loans was 0.05%, compared to 0.11%.

Non-interest income and non-interest expense

• Total non-interest income was $30.5 million, compared to $27.4 million, an increase of $3.1 million. The increase was primarily driven by a $3.8 million increase in BOLI income and an $803,000 increase in insurance agency income, partially offset by a $1.1 million decrease in fee income.   The increase in BOLI income was primarily related to an increase in benefit claims, while the increase in insurance agency income was due to an increase in business activity in the current quarter. The decrease in fee income was primarily related to a decrease in loan related fee income.
• Total non-interest expense was $140.7 million, compared to $113.1 million, an increase of $27.6 million. The increase was primarily driven by a $17.5 million loss related to the extinguishment of subordinated debt, a $4.8 million increase in compensation and benefits expense, partially due to increases in salary expense, combined with increases in employee medical benefits and incentive-based compensation expenses, $3.7 million related to costs associated with our core system conversion, a $1.3 million increase in data processing expense and a $969,000 increase in other non-interest expense, partially offset by a $934,000 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 Bancorp, Inc. The increase in data processing expense was primarily due to an increase in software maintenance expense, while the increase in other non-interest expense was due to increases in loan collection and business development expenses.
• The Company’s annualized core non-interest expense as a percentage of average assets⁽⁶⁾ totaled 1.84%, compared to 1.83%. The core efficiency ratio (core non-interest expense divided by the sum of net interest income and core non-interest income)⁽⁷⁾ was 49.93%, compared to 51.01%.

Income tax expense

• Income tax expense was $23.5 million, compared to $29.9 million, while the effective tax rate was 25.3%, compared to 29.4%. 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. The effective tax rate change was primarily related to the aforementioned discrete items.

About the Company

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

Post Earnings Conference Call

Representatives of the Company will hold a conference call for investors on Thursday, October 29, 2026 at 10:00 a.m. Eastern Time to discuss the Company’s financial results for the quarter ended September 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 (178 464 522) before being met by a live operator. Internet access to the call is also available (listen only) at provident.bank by going to Investor Relations and clicking on "Webcast."

A supplemental 3rd Quarter 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
September 30, 2026 (Unaudited) and December 31, 2025
(Dollars in Thousands)
Assets	September 30, 2026				December 31, 2025
Cash and cash equivalents	$	266,002			$	211,484
Available for sale debt securities, at fair value		3,284,350				3,164,756
Held to maturity debt securities, (net of $22,000 allowance as of September 30, 2026 (unaudited) and $16,000 allowance as of December 31, 2025)		257,084				282,127
Equity securities, at fair value		19,706				19,875
Federal Home Loan Bank stock		128,937				115,687
Loans held for sale		5,632				14,710
Loans held for investment		20,170,070				19,504,061
Less allowance for credit losses		189,469				184,767
Net loans		19,986,233				19,334,004
Foreclosed assets, net		963				2,015
Banking premises and equipment, net		115,748				113,328
Accrued interest receivable		102,095				95,798
Intangible assets		756,453				782,152
Bank-owned life insurance		405,423				414,371
Other assets		524,465				445,113
Total assets	$	25,847,459			$	24,980,710
Liabilities and Stockholders' Equity
Deposits:
Demand deposits	$	15,130,297			$	14,402,148
Savings deposits		1,451,633				1,589,259
Certificates of deposit		3,224,905				3,287,276
Total deposits		19,806,835				19,278,683
Mortgage escrow deposits		45,824				40,253
Borrowed funds		2,390,788				2,111,955
Subordinated debentures		429,464				406,582
Other liabilities		310,057				310,025
Total liabilities		22,982,968				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 130,420,025 shares outstanding as of September 30, 2026 and 130,619,949 outstanding as of December 31, 2025		1,376				1,376
Additional paid-in capital		1,852,824				1,844,949
Retained earnings		1,288,062				1,154,364
Accumulated other comprehensive loss		(174,940	)			(76,183	)
Treasury stock		(102,831	)			(91,294	)
Total stockholders' equity		2,864,491				2,833,212
Total liabilities and stockholders' equity	$	25,847,459			$	24,980,710

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Income
Three months ended September 30, 2026, June 30, 2026 and September 30, 2025, and nine months ended September 30, 2026 and 2025 (Unaudited)
(Dollars in Thousands, except per share data)
	Three Months Ended										Nine Months Ended
	September 30,			June 30,				September 30,			September 30,				September 30,
		2026			2026				2025			2026				2025
Interest and dividend income:
Real estate secured loans	$	203,496		$	195,381			$	197,252		$	590,380			$	577,097
Commercial loans		84,026			82,757				81,943			244,685				236,616
Consumer loans		10,074			9,953				10,847			29,927				31,470
Available for sale debt securities, equity securities and Federal Home Loan Bank stock		38,202			35,975				33,578			107,460				94,666
Held to maturity debt securities		1,737			1,778				1,897			5,309				5,859
Deposits, federal funds sold and other short-term investments		736			751				764			2,173				2,227
Total interest income		338,271			326,595				326,281			979,934				947,935
Interest expense:
Deposits		101,856			91,803				102,094			285,595				295,771
Borrowed funds		19,303			23,730				21,307			64,044				63,555
Subordinated debt		9,104			8,382				8,548			25,862				25,455
Total interest expense		130,263			123,915				131,949			375,501				384,781
Net interest income		208,008			202,680				194,332			604,433				563,154
Provision for credit losses		5,240			9,334				7,044			12,458				4,794
Net interest income after provision for credit losses		202,768			193,346				187,288			591,975				558,360
Non-interest income:
Fees		10,286			12,259				11,336			33,009				31,727
Wealth management income		7,825			7,517				7,349			22,745				21,625
Insurance agency income		4,737			5,672				3,934			17,392				14,732
Bank-owned life insurance		6,479			3,798				2,662			14,311				7,340
Net gain (loss) on securities transactions		87			(309	)			67			(222	)			153
Gain on sale of SBA loans		450			945				512			2,139				1,822
Other income		662			2,091				1,559			4,579				4,125
Total non-interest income		30,526			31,973				27,419			93,953				81,524
Non-interest expense:
Compensation and employee benefits		67,958			67,289				63,202			201,443				188,817
Net occupancy expense		13,160			12,464				12,773			40,609				39,711
Data processing expense		10,369			9,388				9,102			29,403				28,305
FDIC Insurance		3,155			3,155				3,418			9,150				10,144
Amortization of intangibles		8,563			8,559				9,497			25,685				28,496
Advertising and promotion expense		1,885			1,513				1,640			4,336				4,124
Core systems conversion expense		3,661			1,508				—			5,169				—
Loss on extinguishment of debt		17,501			—				—			17,501				—
Other operating expenses		14,429			15,382				13,460			43,786				44,376
Total non-interest expense		140,681			119,258				113,092			377,082				343,973
Net income before income tax expense		92,613			106,061				101,615			308,846				295,911
Income tax expense		23,454			27,914				29,895			82,122				88,182
Net income	$	69,159		$	78,147			$	71,720		$	226,724			$	207,729
Basic earnings per share	$	0.53		$	0.60			$	0.55		$	1.74			$	1.59
Average basic shares outstanding		130,389,735			130,330,787				130,506,517			130,410,584				130,439,534
Diluted earnings per share	$	0.53		$	0.60			$	0.55		$	1.74			$	1.59
Average diluted shares outstanding		130,417,843			130,388,396				130,553,819			130,464,809				130,479,443

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Quarterly Average Balances
(Dollars in Thousands) (Unaudited)
	September 30, 2026									June 30, 2026									September 30, 2025
	Average Balance			Interest			Average Yield/Cost			Average Balance			Interest			Average Yield/Cost			Average Balance			Interest			Average Yield/Cost
Interest-Earning Assets:
Deposits	$	77,799		$	736		3.72	%		$	73,162		$	751		4.09	%		$	79,471		$	764		3.82	%
Available for sale debt securities		3,329,680			35,888		4.31	%			3,272,868			33,637		4.11	%			3,070,080			30,952		4.03	%
Held to maturity debt securities, net (1)		257,990			1,737		2.69	%			266,727			1,778		2.67	%			299,506			1,897		2.53	%
Equity securities, at fair value		20,027			126		2.52	%			19,986			123		2.46	%			19,457			120		2.47	%
Total securities		3,607,697			37,751		4.18	%			3,559,581			35,538		3.99	%			3,389,043			32,969		3.89	%
Federal Home Loan Bank stock		108,706			2,188		7.87	%			132,390			2,215		6.62	%			116,788			2,506		8.58	%
Net loans: (2)
Total mortgage loans		13,843,143			203,496		5.84	%			13,636,285			195,381		5.75	%			13,390,032			197,252		5.85	%
Total commercial loans		5,433,585			84,026		6.14	%			5,327,395			82,757		6.23	%			4,908,131			81,943		6.63	%
Total consumer loans		604,410			10,074		6.61	%			605,579			9,953		6.59	%			608,600			10,847		7.07	%
Total net loans		19,881,138			297,596		5.94	%			19,569,259			288,091		5.90	%			18,906,763			290,042		6.09	%
Total interest-earning assets	$	23,675,340		$	338,271		5.68	%		$	23,334,392		$	326,595		5.61	%		$	22,492,065		$	326,281		5.76	%
Non-Interest Earning Assets:
Cash and due from banks		151,192									162,746									154,859
Other assets		1,819,515									1,800,478									1,871,366
Total assets	$	25,646,047								$	25,297,616								$	24,518,290
Interest-Bearing Liabilities:
Demand deposits	$	11,338,331		$	72,205		2.53	%		$	10,674,922		$	63,736		2.39	%		$	10,280,314		$	70,584		2.72	%
Savings deposits		1,532,983			791		0.20	%			1,599,622			814		0.20	%			1,596,072			896		0.22	%
Time deposits		3,303,541			28,860		3.47	%			3,236,519			27,253		3.38	%			3,287,241			30,614		3.69	%
Total deposits		16,174,855			101,856		2.50	%			15,511,063			91,803		2.37	%			15,163,627			102,094		2.67	%
Borrowed funds		1,911,917			19,303		4.01	%			2,435,404			23,730		3.91	%			2,136,111			21,307		3.96	%
Subordinated debentures		448,066			9,104		8.06	%			408,260			8,382		8.23	%			404,548			8,548		8.38	%
Total interest-bearing liabilities		18,534,838			130,263		2.79	%			18,354,727			123,915		2.71	%			17,704,286			131,949		2.96	%
Non-Interest Bearing Liabilities:
Non-interest bearing deposits		3,850,952									3,716,104									3,725,645
Other non-interest bearing liabilities		337,171									329,223									349,945
Total non-interest bearing liabilities		4,188,123									4,045,327									4,075,590
Total liabilities		22,722,961									22,400,054									21,779,876
Stockholders' equity		2,923,086									2,897,562									2,738,414
Total liabilities and stockholders' equity	$	25,646,047								$	25,297,616								$	24,518,290
Net interest income				$	208,008								$	202,680								$	194,332
Net interest rate spread							2.89	%								2.90	%								2.80	%
Net interest-earning assets	$	5,140,502								$	4,979,665								$	4,787,779
Net interest margin (3)							3.50	%								3.48	%								3.43	%
Ratio of interest-earning assets to total interest-bearing liabilities	1.28x									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.
	9/30/26			6/30/26			3/31/26			12/31/25			9/30/25
	3rd Qtr.			2nd Qtr.			1st Qtr.			4th Qtr.			3rd Qtr.
Interest-Earning Assets:
Securities	4.18	%		3.99	%		3.80	%		3.87	%		3.89	%
Net loans	5.94	%		5.90	%		5.85	%		5.98	%		6.09	%
Total interest-earning assets	5.68	%		5.61	%		5.53	%		5.66	%		5.76	%
Interest-Bearing Liabilities:
Deposits	2.50	%		2.37	%		2.39	%		2.60	%		2.67	%
Borrowings	4.01	%		3.91	%		3.90	%		3.94	%		3.96	%
Total interest-bearing liabilities	2.79	%		2.71	%		2.71	%		2.83	%		2.96	%
Interest rate spread	2.89	%		2.90	%		2.82	%		2.83	%		2.80	%
Net interest margin	3.50	%		3.48	%		3.40	%		3.44	%		3.43	%
Ratio of interest-earning assets to interest-bearing liabilities	1.28x			1.27x			1.27x			1.28x			1.27x

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Average Year to Date Balances
(Dollars in Thousands) (Unaudited)
	September 30, 2026									September 30, 2025
	Average						Average			Average						Average
	Balance			Interest			Yield/Cost			Balance			Interest			Yield/Cost
Interest-Earning Assets:
Deposits	$	75,855		$	2,173		3.83	%		$	78,434		$	2,227		4.21	%
Available for sale debt securities		3,273,782			100,983		4.11	%			2,952,923			87,530		3.95	%
Held to maturity debt securities, net (1)		266,129			5,309		2.66	%			311,507			5,859		2.51	%
Equity securities, at fair value		20,001			370		2.46	%			19,294			469		3.24	%
Total securities		3,559,912			106,662		3.99	%			3,283,724			93,858		3.81	%
Federal Home Loan Bank stock		120,422			6,107		6.76	%			119,503			6,667		7.48	%
Net loans: (2)
Total mortgage loans		13,691,826			590,380		5.76	%			13,362,561			577,097		5.77	%
Total commercial loans		5,306,577			244,685		6.16	%			4,803,599			236,616		6.59	%
Total consumer loans		605,173			29,927		6.61	%			609,979			31,470		6.90	%
Total net loans		19,603,576			864,992		5.90	%			18,776,139			845,183		6.02	%
Total interest-earning assets	$	23,359,765		$	979,934		5.61	%		$	22,257,800		$	947,935		5.69	%
Non-Interest Earning Assets:
Cash and due from banks		161,604									146,568
Other assets		1,804,260									1,908,122
Total assets	$	25,325,629								$	24,312,490
Interest-Bearing Liabilities:
Demand deposits	$	10,926,221		$	199,300		2.44	%		$	10,084,036		$	200,819		2.66	%
Savings deposits		1,579,450			2,444		0.21	%			1,641,821			2,720		0.22	%
Time deposits		3,257,273			83,851		3.44	%			3,228,399			92,232		3.82	%
Total deposits		15,762,944			285,595		2.42	%			14,954,256			295,771		2.64	%
Borrowed funds		2,176,348			64,044		3.93	%			2,182,319			63,555		3.89	%
Subordinated debentures		421,265			25,862		8.21	%			403,299			25,455		8.44	%
Total interest-bearing liabilities	$	18,360,557		$	375,501		2.73	%		$	17,539,874		$	384,781		2.93	%
Non-Interest Bearing Liabilities:
Non-interest bearing deposits		3,737,976									3,715,008
Other non-interest bearing liabilities		328,993									370,224
Total non-interest bearing liabilities		4,066,969									4,085,232
Total liabilities		22,427,526									21,625,106
Stockholders' equity		2,898,103									2,687,384
Total liabilities and stockholders' equity	$	25,325,629								$	24,312,490
Net interest income				$	604,433								$	563,154
Net interest rate spread							2.88	%								2.76	%
Net interest-earning assets	$	4,999,208								$	4,717,926
Net interest margin (3)							3.46	%								3.38	%
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.
	Nine Months Ended
	September 30, 2026			September 30, 2025			September 30, 2024
Interest-Earning Assets:
Securities	3.99	%		3.81	%		3.10	%
Net loans	5.90	%		6.02	%		5.99	%
Total interest-earning assets	5.61	%		5.69	%		5.61	%
Interest-Bearing Liabilities:
Deposits	2.42	%		2.64	%		2.84	%
Borrowings	3.93	%		3.89	%		3.73	%
Total interest-bearing liabilities	2.73	%		2.93	%		3.06	%
Interest rate spread	2.88	%		2.76	%		2.55	%
Net interest margin	3.46	%		3.38	%		3.18	%
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				Nine months Ended
		September 30,				September 30,
			2026				2026
Net interest income		$	208,008			$	604,433
Provision for loan losses			5,240				12,458
Net interest income after provision for loan losses		$	202,768			$	591,975
Non-interest income			30,526				93,953
Non-interest expense		$	140,681			$	377,082
Loss on extinguishment of debt			17,501				17,501
Executive severance expense			—				864
Core system conversion expense			3,661				5,169
Restructuring expenses			465				465
Core non-interest expense		$	119,054			$	353,083
Income taxes			23,454				82,122
Income tax of non-core items			6,508				7,221
Core net income		$	84,278			$	243,502
Avg. diluted shares outstanding for the 3 and 9 months ended September 30, 2026			130,417,843				130,464,809
Core diluted earnings per share		$	0.65			$	1.87
(2) Annualized core pre-provision net revenue ("PPNR") returns on average assets, average equity and average tangible equity
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
			2026				2026				2026				2025				2025
Net income		$	69,159			$	78,147			$	79,417			$	83,431			$	71,720
Adjustments to net income:
Provision for credit losses			5,240				9,334				(2,116	)			(1,213	)			7,044
Loss on extinguishment of debt			17,501				—				—				—				—
Executive severance expense			—				864				—				—				—
Core system conversion expense			3,661				1,508				—				—				—
Restructuring expenses			465				—				—				—				—
Income tax expense			23,454				27,914				30,754				28,814				29,895
Core PPNR		$	119,480			$	117,767			$	108,055			$	111,032			$	108,659
Annualized core PPNR income		$	474,024			$	472,362			$	438,223			$	440,507			$	431,093
Add.: Amortization of Intangibles		$	8,563			$	8,559			$	8,563			$	8,578			$	9,497
Annualized Amortization of Intangibles		$	33,973			$	34,330			$	34,728			$	34,032			$	37,678
Annualized Core PPNR earnings incl amortization of intangibles		$	507,997			$	506,692			$	472,951			$	474,540			$	468,771
Core diluted earnings per share		$	130,417,843			$	130,388,396			$	130,588,635			$	130,589,271			$	130,553,819
Core PPNR Diluted EPS		$	0.92			$	0.90			$	0.83			$	0.85			$	0.83
Average assets		$	25,646,047			$	25,297,616			$	25,026,414			$	24,775,214			$	24,518,290
Average equity		$	2,923,086			$	2,897,562			$	2,873,113			$	2,810,166			$	2,738,414
Average tangible equity		$	2,160,972			$	2,126,989			$	2,093,975			$	2,022,451			$	1,941,625
Annualized core PPNR return on average assets			1.85	%			1.87	%			1.75	%			1.78	%			1.76	%
Annualized core PPNR return on average equity			16.22	%			16.30	%			15.25	%			15.68	%			15.74	%
Annualized core PPNR return on average tangible equity			23.51	%			23.82	%			22.59	%			23.46	%			24.14	%
(3) Annualized Core Return on Average Assets, Average Equity and Average Tangible Equity
		For the Quarter Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
			2026				2026				2026				2025				2025
Net Income		$	69,159			$	78,147				79,417				83,431			$	71,720
Loss on extinguishment of debt			17,501				—				—				—				—
Executive severance expense			—				864				—				—				—
Core system conversion expense			3,661				1,508				—				—				—
Restructuring expenses			465				—				—				—				—
Less: income tax expense			(6,508	)			(714	)			—				—				—
Annualized core net income		$	84,278				79,805				79,417				83,431				71,720
Plus: Amortization of Intangibles (net of tax)			5,986				5,984				5,986				5,997				6,639
Annualized core net income for annualized core return on average tangible equity		$	90,264			$	85,789			$	85,403			$	89,428			$	78,359
Average assets		$	25,646,047			$	25,297,616			$	25,026,414			$	24,775,214			$	24,518,290
Average equity		$	2,923,086			$	2,897,562			$	2,873,113			$	2,810,166			$	2,738,414
Average tangible equity		$	2,160,972			$	2,126,989			$	2,093,975			$	2,022,451			$	1,941,625
Annualized Core Return on Average Assets			1.30	%			1.27	%			1.29	%			1.34	%			1.16	%
Annualized Core Return on Average Equity			11.44	%			11.05	%			11.21	%			11.78	%			10.39	%
Annualized Core Return on Average Tangible Equity			16.57	%			16.18	%			16.54	%			17.54	%			16.01	%
(4) Tangible Common Equity Ratio, Book and Tangible Book Value per Share
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
			2026				2026				2026				2025				2025
Total assets		$	25,847,459			$	25,663,358			$	25,201,690			$	24,980,710			$	24,832,763
Less: total intangible assets			756,453				765,019				773,585				782,152				790,729
Total tangible assets		$	25,091,006			$	24,898,339			$	24,428,105			$	24,198,558			$	24,042,034
Total stockholders' equity		$	2,864,491			$	2,906,985			$	2,862,869			$	2,833,212			$	2,767,035
Less: total intangible assets			756,453				765,019				773,585				782,152				790,729
Total tangible stockholders' equity		$	2,108,038			$	2,141,966			$	2,089,284			$	2,051,060			$	1,976,306
Tangible common equity ratio			8.40	%			8.60	%			8.55	%			8.48	%			8.22	%
Shares outstanding			130,420,025			$	130,423,051			$	130,311,796			$	130,619,949			$	130,621,757
Book value per share (total stockholders' equity/shares outstanding)		$	21.96			$	22.29			$	21.97			$	21.69			$	21.18
Tangible book value per share (total tangible stockholders' equity/shares outstanding)		$	16.16			$	16.42			$	16.03			$	15.70			$	15.13
(5) Annualized Return on Average Tangible Equity
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
			2026				2026				2026				2025				2025
Total average stockholders' equity		$	2,923,086			$	2,897,562			$	2,873,113			$	2,810,166			$	2,738,414
Less: total average intangible assets			762,114				770,573				779,138				787,715				796,789
Total average tangible stockholders' equity		$	2,160,972			$	2,126,989			$	2,093,975			$	2,022,451			$	1,941,625
Net income		$	69,159			$	78,147			$	79,417			$	83,431			$	71,720
Plus: Amortization of Intangibles, net of tax			5,986			$	5,984			$	5,986			$	5,997			$	6,639
Total net income		$	75,145			$	84,131			$	85,403			$	89,428			$	78,359
Annualized return on average tangible equity (net income/total average tangible stockholders' equity)			13.80	%			15.87	%			16.54	%			17.54	%			16.01	%
(6) Annualized Core Non-Interest Expense to Average Assets
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
			2026				2026				2026				2025				2025
Reported non-interest expense		$	140,681			$	119,258			$	117,141			$	114,690			$	113,092
Adjustments to non-interest expense:
Loss on extinguishment of debt			17,501				—				—				—				—
Executive severance expense			—				864				—				—				—
Core system conversion expense			3,661				1,508				—				—				—
Restructuring expenses			465				—				—				—				—
Core non-interest expense		$	119,054			$	116,886			$	117,141			$	114,690			$	113,092
Annualized core non-interest expense		$	472,334			$	468,828			$	475,072			$	455,020			$	448,680
Average assets		$	25,646,047			$	25,297,616			$	25,026,414			$	24,775,214			$	24,518,290
Annualized core non-interest expense/average assets			1.84	%			1.85	%			1.90	%			1.84	%			1.83	%
(7) Core Efficiency Ratio Calculation
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
			2026				2026				2026				2025				2025
Net interest income		$	208,008			$	202,680			$	193,743			$	197,411			$	194,332
Reported non-interest income			30,526				31,973				31,453				28,311				27,419
Adjustments to non-interest income:
Net (gain) loss on securities transactions			(87	)			309				—				(690	)			(67	)
Core non-interest income			30,439				32,282				31,453				27,621				27,352
Total core income		$	238,447				234,962				225,196				225,032				221,684
Core non-interest expense		$	119,054				116,886				117,141				114,690				113,092
Core Efficiency ratio (core non-interest expense/core income)			49.93	%			49.75	%			52.02	%			50.97	%			51.01	%

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

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Provident Financial Services’ third-quarter 2026 earnings?

Provident Financial Services earned $69.2 million, or $0.53 per basic and diluted share, in the quarter ended September 30, 2026. That compares with $78.1 million, or $0.60 per share, in the preceding quarter and $71.7 million, or $0.55 per share, a year earlier.

How much did Provident Financial Services’ deposits grow in the third quarter of 2026?

Total deposits increased $261.7 million, or 5.31% annualized, during the quarter to $19.81 billion. Core deposits, which exclude certificates of deposit and wholesale deposits, increased $233.7 million, or 5.76% annualized, to $15.42 billion.

What was Provident Financial Services’ commercial real estate concentration at September 30, 2026?

Provident Financial Services’ adjusted commercial real estate concentration ratio was 399.4% at September 30, 2026. The adjusted ratio excludes purchase accounting adjustments.

How much did Provident Financial Services have in unfunded loan commitments at September 30, 2026?

Unfunded loan commitments totaled $3.95 billion, compared with $3.71 billion at December 31, 2025 and $3.82 billion at September 30, 2025. They included $2.24 billion in commercial loans, $677.8 million in construction loans and $335.1 million in commercial mortgage loans.

How large was Provident Financial Services’ loan-loss allowance at September 30, 2026?

The loan-loss allowance totaled $189.5 million, up from $184.8 million at December 31, 2025. It represented 0.94% of total loans and 135.20% of non-performing loans. The increase from year-end reflected a $12.1 million provision for loan credit losses, partially offset by $7.4 million in net charge-offs.