ISELIN, N.J., July 25, 2024 (GLOBE NEWSWIRE) -- Provident Financial Services, Inc. (NYSE:PFS) (the "Company") reported a net loss of $11.5 million, or $0.11 per basic and diluted share for the three months ended June 30, 2024, compared to net income of $32.1 million, or $0.43 per basic and diluted share, for the three months ended March 31, 2024 and $32.0 million, or $0.43 per basic and diluted share, for the three months ended June 30, 2023. For the six months ended June 30, 2024, net income totaled $20.6 million, or $0.23 per basic and diluted share, compared to $72.5 million, or $0.97 per basic and diluted share, for the six months ended June 30, 2023.
On May 16, 2024, the Company completed its merger with Lakeland Bancorp, Inc. ("Lakeland"), which added $10.91 billion to total assets, $7.91 billion to loans, and $8.62 billion to deposits, net of purchase accounting adjustments. The Company's earnings for the three and six months ended June 30, 2024 were impacted by an initial CECL provision for credit losses on loans and commitments to extend credit of $65.2 million recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. The results of operations for the three and six months ended June 30, 2024 also included other transaction costs related to the merger with Lakeland totaling $18.9 million and $21.1 million, respectively, compared with transaction costs totaling $2.0 million and $3.1 million for the respective 2023 periods. Additionally, the Company realized a $2.8 million loss related to the sale in the current quarter of subordinated debt issued by Lakeland from its investment portfolio.
Anthony J. Labozzetta, President and Chief Executive Officer commented, "We are pleased with our performance this quarter, which featured the completion of our merger with Lakeland. While financial results reflect merger-related expenses, our core businesses, credit quality and risk management remain strong. Our fee-based wealth management and insurance agency teams performed well and are positioned to take advantage of our strengths as a larger organization. Our solid core performance, as demonstrated by our pre-tax pre-provision return on average assets, shows that the combined entity has a solid foundation and compelling prospects for the future."
Regarding the Company's merger with Lakeland, Mr. Labozzetta added, "It is an exciting time for us as we have successfully closed the merger and welcomed the Lakeland team into Provident. We are grateful to our employees for their diligent efforts in completing the merger. As we approach systems conversion in September, we are pleased with how our cultures are integrating. Our teams are working together to broaden and deepen our relationships across a larger customer base through our complementary platforms of banking, insurance and wealth management."
Performance Highlights for the Second Quarter of 2024
- The Company recorded a $66.1 million provision for credit losses on loans for the quarter ended June 30, 2024, compared to a $200,000 provision for the trailing quarter. The provision for credit losses on loans in the quarter was primarily attributable to an initial CECL provision for credit losses on loans of $60.1 million, recorded as part of the Lakeland merger. The allowance for credit losses as a percentage of loans increased to 1.00% as of June 30, 2024, from 0.98% as of March 31, 2024.
- The Company's annualized adjusted pre-tax, pre-provision returns on average assets, average equity and average tangible equity(1) were 1.47%, 13.26% and 19.21% for the quarter ended June 30, 2024, compared to 1.28%, 10.62% and 14.54% for the quarter ended March 31, 2024. A reconciliation between GAAP and the above non-GAAP ratios are shown on page 13 of the earnings release.
- The Company's loans held for investment totaled $18.76 billion as of June 30, 2024, from $10.84 billion as of March 31, 2024. As part of the merger with Lakeland, we acquired $7.91 billion in loans, net of purchase accounting adjustments.
- The Company's deposits totaled $18.35 billion as of June 30, 2024, from $10.10 billion as of March 31, 2024. As part of the merger with Lakeland, we acquired $8.62 billion in deposits, net of purchase accounting adjustments. Excluding municipal and brokered deposits, organic deposits increased $123.0 million during the quarter.
- Net interest income increased $47.8 million to $141.5 million for the three months ended June 30, 2024, from $93.7 million for the trailing quarter primarily due to the net assets acquired from Lakeland, including accretion of purchase accounting adjustments.
- The net interest margin increased 34 basis points to 3.21% for the quarter ended June 30, 2024, from 2.87% for the trailing quarter. The weighted average yield on interest-earning assets for the quarter ended June 30, 2024 increased 61 basis points to 5.67%, compared to the trailing quarter, while the weighted average cost of interest-bearing liabilities for the quarter ended June 30, 2024 increased 29 basis points to 3.09%, compared to the trailing quarter. The increases in both the yield on interest-earning assets and cost of interest-bearing liabilities were primarily due to the net assets and liabilities acquired from Lakeland, including accretion of purchase accounting adjustments which contributed approximately 47 basis points to the net interest margin in the current quarter.
- As of June 30, 2024, the Company's loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $1.67 billion, with a weighted average interest rate of 7.53%, compared to $1.08 billion, with a weighted average interest rate of 7.42%, as of March 31, 2024. The increase in pipeline was primarily attributable to the addition of Lakeland's pipeline.
- As of June 30, 2024, CRE loans related to office properties totaled $1.1 billion, compared to $483.9 million as of March 31, 2024. The increase was attributable to the addition of Lakeland's loan portfolio. CRE loans secured by office properties constitutes only 5.7% of total loans and have an average loan size of $2.1 million, with just nine relationships greater than $10.0 million. Approximately 37% of the Company's office loans are to medical offices and the portfolio does not have significant central business district exposure. Delinquencies in the office portfolio as of June 30, 2024 were limited to one loan totaling $801,000.
- As of June 30, 2024, multi-family CRE loans secured by New York City properties totaled $227.7 million, compared to $188.7 million as of March 31, 2024. The increase was attributable to the addition of Lakeland's loan portfolio. This portfolio constitutes only 1.2% of total loans and has an average loan size of $2.6 million. Approximately $113.6 million of these loans are collateralized by rent stabilized apartments and all are performing.
- Wealth Management and Insurance Agency income increased 12.3% and 16.7%, respectively, versus the same period in 2023. The increase in wealth management income was primarily due to an increase in the average market value of assets under management during the period, while the increase in insurance agency income was largely due to an increase in business activity. Total non-interest income was 13.6% of net revenue for the quarter ended June 30, 2024.
- On May 9, 2024, the Company issued $225.0 million of 9.00% Fixed-to-Floating Rate subordinated notes due 2034, resulting in net proceeds of $221.0 million.
- Non-performing loans to total loans as of June 30, 2024 decreased to 0.36%, compared to 0.44% as of March 31, 2024, while non-performing assets to total loans as of June 30, 2024 decreased to 0.33%, compared to 0.42% as of March 31, 2024. For the three months ended June 30, 2024, net charge-offs totaled $1.3 million, or an annualized 4 basis points of average loans.
Declaration of Quarterly Dividend
The Company's Board of Directors declared a quarterly cash dividend of $0.24 per common share payable on August 30, 2024 to stockholders of record as of the close of business on August 16, 2024.
Results of Operations
Three months ended June 30, 2024 compared to the three months ended March 31, 2024
For the three months ended June 30, 2024, the Company reported a net loss of $11.5 million, or $0.11 per basic and diluted share, compared to net income of $32.1 million, or $0.43 per basic and diluted share, for the three months ended March 31, 2024. The Company's earnings for the three months ended June 30, 2024 were impacted by an initial CECL provision for credit losses on loans and commitments to extend credit of $65.2 million recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. The results of operations for the three months ended June 30, 2024 included transaction costs related to the merger with Lakeland totaling $18.9 million, compared with transaction costs totaling $2.2 million in the trailing quarter. Additionally, the Company realized a $2.8 million loss related to the sale in the current quarter of subordinated debt issued by Lakeland from its investment portfolio.
Net Interest Income and Net Interest Margin
Net interest income increased $47.8 million to $141.5 million for the three months ended June 30, 2024, from $93.7 million for the trailing quarter. Net interest income for the three months ended June 30, 2024 was favorably impacted by the net assets acquired from Lakeland, partially offset by unfavorable repricing of both deposits and borrowings.
The Company's net interest margin increased 34 basis points to 3.21% for the quarter ended June 30, 2024, from 2.87% for the trailing quarter. Accretion of purchase accounting adjustments contributed 47 basis points to the net interest margin in the current quarter. The current net interest margin reflects the acquisition of Lakeland's interest-bearing assets and liabilities, the sale of $554.2 million of securities acquired from Lakeland and the repayment of overnight borrowings as well as the issuance of subordinated debt.
The weighted average yield on interest-earning assets for the quarter ended June 30, 2024 increased 61 basis points to 5.67%, compared to the trailing quarter. The weighted average cost of interest-bearing liabilities for the quarter ended June 30, 2024 increased 29 basis points from the trailing quarter, to 3.09%. The average cost of interest-bearing deposits for the quarter ended June 30, 2024 increased 24 basis points to 2.84%, compared to 2.60% for the trailing quarter. The average cost of total deposits, including non-interest-bearing deposits, was 2.27% for the quarter ended June 30, 2024, compared to 2.07% for the trailing quarter. The average cost of borrowed funds for the quarter ended June 30, 2024 was 3.83%, compared to 3.60% for the quarter ended March 31, 2024.
Provision for Credit Losses on Loans
For the quarter ended June 30, 2024, the Company recorded a $66.1 million provision for credit losses on loans, compared with a provision for credit losses on loans of $200,000 for the quarter ended March 31, 2024. The provision for credit losses on loans in the quarter was primarily attributable to an initial CECL provision for credit losses of $60.1 million, recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. For the three months ended June 30, 2024, net charge-offs totaled $1.3 million, or an annualized 4 basis points of average loans.
Non-Interest Income and Expense
For the three months ended June 30, 2024, non-interest income totaled $22.3 million, an increase of $1.5 million, compared to the trailing quarter. Fee income increased $2.8 million to $8.7 million for the three months ended June 30, 2024, compared to the trailing quarter, primarily due to increases in deposit fee income, debit card related fee income and commercial loan prepayment fees, resulting from the Lakeland merger. BOLI income increased $1.5 million for the three months ended June 30, 2024, compared to the trailing quarter, primarily due to an increase in benefit claims recognized, while wealth management income increased $281,000 to $7.8 million for the three months ended June 30, 2024, compared to the trailing quarter, mainly due to an increase in the average market value of assets under management during the period. Partially offsetting these increases in non-interest income, net gain on securities transactions decreased $3.0 million for the three months ended June 30, 2024, compared to the trailing quarter, primarily due to a $2.8 million loss on the sale of subordinated debt issued by Lakeland from the Provident investment portfolio prior to the merger. Additionally, insurance agency income decreased $305,000 to $4.5 million for the three months ended June 30, 2024, compared to the trailing quarter, mainly due to the receipt of contingent commissions in the prior quarter, partially offset by additional business in the current quarter.
Non-interest expense totaled $115.4 million for the three months ended June 30, 2024, an increase of $43.6 million, compared to $71.8 million for the trailing quarter. Merger-related expenses increased $16.7 million to $18.9 million for the three months ended June 30, 2024, compared to the trailing quarter. Compensation and benefits expense increased $14.8 million to $54.9 million for the three months ended June 30, 2024, compared to $40.0 million for the trailing quarter. The increase in compensation and benefits expense was primarily attributable to the addition of Lakeland. Amortization of intangibles increased $5.8 million to $6.5 million for the three months ended June 30, 2024, compared to $705,000 for the trailing quarter, largely due to purchase accounting adjustments related to Lakeland. Net occupancy expense increased $2.6 million to $11.1 million for the three months ended June 30, 2024, compared to $8.5 million for the trailing quarter, primarily due to depreciation and maintenance expenses from the addition of Lakeland. Data processing expense increased $1.7 million to $8.4 million for the three months ended June 30, 2024, compared to $6.8 million for the trailing quarter, primarily due to additional software and hardware expenses needed for the addition of Lakeland. Other operating expenses increased $931,000 to $11.3 million for the three months ended June 30, 2024, compared to $10.3 million for the trailing quarter, while FDIC insurance increased $828,000 to $3.1 million for the three months ended June 30, 2024, compared to the trailing quarter, primarily due to the addition of Lakeland.
The Company's annualized adjusted non-interest expense as a percentage of average assets(1) was 2.02% for the quarter ended June 30, 2024, compared to 1.99% for the trailing quarter. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)(1) was 57.86% for the three months ended June 30, 2024, compared to 60.83% for the trailing quarter.
Income Tax Expense
For the three months ended June 30, 2024, the Company's income tax benefit was $9.8 million, compared with income tax expense of $10.9 million for the trailing quarter. The decrease in tax expense for the three months ended June 30, 2024, compared with the trailing quarter was largely due to a $5.3 million tax benefit related to the revaluation of deferred tax assets to reflect the imposition by the state of New Jersey of a 2.5% Corporate Transit Fee in the quarter, effective January 1, 2024, combined with a decrease in taxable income in the quarter as a result of additional expenses from the Lakeland merger.
Three months ended June 30, 2024 compared to the three months ended June 30, 2023
For the three months ended June 30, 2024, the Company reported a net loss of $11.5 million, or $0.11 per basic and diluted share, compared to net income of $32.0 million, or $0.43 per basic and diluted share, for the three months ended June 30, 2023. The Company's earnings for the three months ended June 30, 2024 were impacted by an initial CECL provision for credit losses on loans and commitments to extend credit of $65.2 million recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. The results of operations for the three months ended June 30, 2024 included transaction costs related to the merger with Lakeland totaling $18.9 million and $2.0 million for the three months ended June 30, 2024 and 2023, respectively. Additionally, the Company realized a $2.8 million loss on the sale in the current quarter of subordinated debt issued by Lakeland from its investment portfolio.
Net Interest Income and Net Interest Margin
Net interest income increased $42.4 million to $141.5 million for the three months ended June 30, 2024, from $99.1 million for same period in 2023. Net interest income for the three months ended June 30, 2024 were favorably impacted by the net assets acquired from Lakeland, partially offset by unfavorable repricing of both deposits and borrowings.
The Company's net interest margin increased 10 basis points to 3.21% for the quarter ended June 30, 2024, from 3.11% for the same period last year. Accretion of purchase accounting adjustments contributed 47 basis points to the net interest margin in the current quarter. The current net interest margin reflects the acquisition of Lakeland's interest bearing assets and liabilities, the sale of $554.2 million of securities acquired from Lakeland and the repayment of overnight borrowings as well as the issuance of subordinated debt.
The weighted average yield on interest-earning assets for the quarter ended June 30, 2024 increased 94 basis points to 5.67%, compared to 4.73% for the quarter ended June 30, 2023. The weighted average cost of interest-bearing liabilities increased 96 basis points for the quarter ended June 30, 2024 to 3.09%, compared to 2.13% for the second quarter of 2023. The average cost of interest-bearing deposits for the quarter ended June 30, 2024 was 2.84%, compared to 1.85% for the same period last year. Average non-interest-bearing demand deposits increased $498.0 million to $2.87 billion for the quarter ended June 30, 2024, compared to $2.37 billion for the quarter ended June 30, 2023. The average cost of total deposits, including non-interest-bearing deposits, was 2.27% for the quarter ended June 30, 2024, compared with 1.42% for the quarter ended June 30, 2023. The average cost of borrowed funds for the quarter ended June 30, 2024 was 3.83%, compared to 3.41% for the same period last year.
Provision for Credit Losses on Loans
For the quarter ended June 30, 2024, the Company recorded a $66.1 million provision for credit losses on loans, compared with a $10.4 million provision for credit losses on loans for the quarter ended June 30, 2023. The provision for credit losses on loans in the quarter was primarily attributable to an initial CECL provision for credit losses on loans of $60.1 million, recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. For the three months ended June 30, 2024, net charge-offs totaled $1.3 million, or an annualized 4 basis points of average loans.
Non-Interest Income and Expense
Non-interest income totaled $22.3 million for the quarter ended June 30, 2024, an increase of $2.9 million, compared to the same period in 2023. Fee income increased $2.9 million to $8.7 million for the three months ended June 30, 2024, compared to the prior year quarter, primarily due to increases in deposit fee income, debit card related fee income and commercial loan prepayment fees, resulting from the Lakeland merger. BOLI income increased $1.8 million to $3.3 million for the three months ended June 30, 2024, compared to the prior year quarter, primarily due to an increase in benefit claims recognized, combined with an increase in income related to the addition of Lakeland's BOLI. Wealth management fees increased $850,000 to $7.8 million for the three months ended June 30, 2024, compared to the quarter ended June 30, 2023, mainly due to an increase in the average market value of assets under management during the period, while insurance agency income increased $641,000 to $4.5 million for the three months ended June 30, 2024, compared to the quarter ended June 30, 2023, largely due to an increase in business activity. Partially offsetting these increases in non-interest income, net gains on securities transactions decreased $3.0 million for the three months ended June 30, 2024, compared to the quarter ended June 30, 2023, primarily due to a loss on the sale of subordinated debt issued by Lakeland from the Provident investment portfolio prior to the merger. Additionally, other income decreased $314,000 to $969,000 for the three months ended June 30, 2024, compared to the quarter ended June 30, 2023, primarily due to a decrease in gains on the sales of foreclosed real estate.
For the three months ended June 30, 2024, non-interest expense totaled $115.4 million, an increase of $50.3 million, compared to the three months ended June 30, 2023. Compensation and benefits expense increased $19.6 million to $54.9 million for three months ended June 30, 2024, compared to $35.3 million for the same period in 2023. The increase in compensation and benefits expense was primarily attributable to the addition of Lakeland. Additionally, merger-related expenses increased $17.0 million to $18.9 million for the three months ended June 30, 2024, compared to the same period in 2023. Amortization of intangibles increased $5.7 million to $6.5 million for the three months ended June 30, 2024, compared to $749,000 for the same period in 2023, largely due to purchase accounting adjustments. Data processing expense increased $2.7 million to $8.4 million for three months ended June 30, 2024, compared to $5.7 million for the same period in 2023, primarily due to additional software and hardware expenses needed for the addition of Lakeland. Net occupancy expense increased $3.2 million to $11.1 million for three months ended June 30, 2024, compared to $7.9 million for the same period in 2023, primarily due to an increase in depreciation and maintenance expenses because of the addition of Lakeland.
The Company's annualized adjusted non-interest expense as a percentage of average assets(1) was 2.02% for the quarter ended June 30, 2024, compared to 1.83% for the same period in 2023. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)(1) was 57.86% for the three months ended June 30, 2024 compared to 53.29% for the same respective period in 2023.
Income Tax Expense
For the three months ended June 30, 2024, the Company's income tax benefit was $9.8 million, compared with an income tax expense of $11.6 million for the three months ended June 30, 2023. The decrease in tax expense for the three months ended June 30, 2024, compared with the same period last year was largely due to a $5.3 million tax benefit related to the revaluation of deferred tax assets to reflect the imposition by the State of NJ of a 2.5% Corporate Transit Fee, effective January 1, 2024, combined with a decrease in taxable income in the quarter as a result of additional expenses from the Lakeland merger.
Six months ended June 30, 2024 compared to the six months ended June 30, 2023
For the six months ended June 30, 2024, net income totaled $20.6 million, or $0.23 per basic and diluted share, compared to net income of $72.5 million, or $0.97 per basic and diluted share, for the six months ended June 30, 2023. The Company's earnings for the six months ended June 30, 2024 were impacted by an initial CECL provision for credit losses on loans and commitments to extend credit of $65.2 million recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. Transaction costs related to our merger with Lakeland totaled $21.1 million and $3.1 million for the six months ended June 30, 2024 and 2023, respectively. Additionally, the Company realized a $2.8 million loss related to the sale in the current quarter of subordinated debt issued by Lakeland from its investment portfolio.
Net Interest Income and Net Interest Margin
Net interest income increased $27.7 million to $235.2 million for the six months ended June 30, 2024, from $207.4 million for same period in 2023. Net interest income for the six months ended June 30, 2024 was favorably impacted by the net assets acquired from Lakeland, combined with the favorable repricing of adjustable rate loans, higher market rates on new loan originations and the originations of higher-yielding loans, partially offset by the unfavorable repricing of both deposits and borrowings.
For the six months ended June 30, 2024, the net interest margin decreased 21 basis points to 3.08%, compared to 3.29% for the six months ended June 30, 2023. The weighted average yield on interest earning assets increased 75 basis points to 5.43% for the six months ended June 30, 2024, compared to 4.68% for the six months ended June 30, 2023, while the weighted average cost of interest-bearing liabilities increased 113 basis points to 2.97% for the six months ended June 30, 2024, compared to 1.84% for the same period last year. The average cost of interest-bearing deposits increased 112 basis points to 2.74% for the six months ended June 30, 2024, compared to 1.62% for the same period last year. Average non-interest-bearing demand deposits increased $10.1 million to $2.47 billion for the six months ended June 30, 2024, compared with $2.46 billion for the six months ended June 30, 2023. The average cost of total deposits, including non-interest-bearing deposits, was 2.19% for the six months ended June 30, 2024, compared with 1.24% for the six months ended June 30, 2023. The average cost of borrowings for the six months ended June 30, 2024 was 3.75%, compared to 3.01% for the same period last year.
Provision for Credit Losses on Loans
For the six months ended June 30, 2024, the Company recorded a $66.3 million provision for credit losses on loans, compared with a provision for credit losses on loans of $16.4 million for the six months ended June 30, 2023. The provision for credit losses on loans in the quarter was primarily attributable to an initial CECL provision for credit losses on loans of $60.1 million recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations, partially offset by an improved economic forecast for the current six-month period within our CECL model, compared to the same period last year. For the six months ended June 30, 2024, net charge-offs totaled $2.3 million, or an annualized 3 basis points of average loans.
Non-Interest Income and Expense
For the six months ended June 30, 2024, non-interest income totaled $43.1 million, an increase of $1.5 million, compared to the same period in 2023. Fee income increased $2.4 million to $14.6 million for the six months ended June 30, 2024, compared to the same period in 2023, primarily due to increases in deposit fee income, debit card related fee income and commercial loan prepayment fees, resulting from the Lakeland merger. BOLI income increased $2.1 million to $5.1 million for the six months ended June 30, 2024, compared to the same period in 2023, primarily due to an increase in benefit claims recognized, combined with an increase in income related to the addition of Lakeland's BOLI, while wealth management income increased $1.4 million to $15.3 million for the six months ended June 30, 2024, compared to the same period in 2023, mainly due to an increase in the average market value of assets under management during the period. Insurance agency income increased $1.3 million to $9.3 million for the six months ended June 30, 2024, compared to $8.0 million for the same period in 2023, largely due to increases in contingent commissions, retention revenue and new business activity. Partially offsetting these increases in non-interest income, net gains on securities transactions decreased $3.0 million for the six months ended June 30, 2024, primarily due to a $2.8 million loss on the sale of subordinated debt issued by Lakeland from the Provident investment portfolio prior to the merger. Other income decreased $2.8 million to $1.8 million for the six months ended June 30, 2024, compared to $4.6 million for the same period in 2023, primarily due to a $2.0 million gain from the sale of a foreclosed commercial property recorded in the prior year, combined with a decrease in gains on sales of SBA loans.
Non-interest expense totaled $187.2 million for the six months ended June 30, 2024, an increase of $53.4 million, compared to $133.9 million for the six months ended June 30, 2023. Compensation and benefits expense increased $20.9 million to $94.9 million for the six months ended June 30, 2024, compared to $74.0 million for the six months ended June 30, 2023. The increase in compensation and benefits expense was primarily attributable to the addition of Lakeland. Merger-related expenses increased $18.1 million to $21.1 million for the six months ended June 30, 2024, compared to $3.1 million for the six months ended June 30, 2023. Amortization of intangibles increased $5.7 million to $7.2 million for the six months ended June 30, 2024, compared to $1.5 million for the six months ended June 30, 2023, largely due to purchase accounting adjustments related to Lakeland. Additionally, net occupancy expense increased $3.3 million to $19.7 million for the six months ended June 30, 2024, compared to the same period in 2023, primarily due to increased depreciation and maintenance expenses because of the addition of Lakeland.
Income Tax Expense
For the six months ended June 30, 2024, the Company's income tax expense was $1.1 million, compared with $26.1 million for the six months ended June 30, 2023. The decrease in tax expense for the six months ended June 30, 2024, compared with the same period last year was largely due to a $5.3 million tax benefit related to the revaluation of deferred tax assets to reflect the imposition by the State of NJ of a 2.5% Corporate Transit Fee, effective January 1, 2024, combined with a decrease in taxable income as a result of additional expenses from the Lakeland merger.
Asset Quality
The Company's total non-performing loans as of June 30, 2024 were $67.9 million, or 0.36% of total loans, compared to $47.6 million, or 0.44% of total loans as of March 31, 2024 and $49.6 million, or 0.46% of total loans as of December 31, 2023. The $20.3 million increase in non-performing loans as of June 30, 2024, compared to the trailing quarter, consisted of an $11.7 million increase in non-performing construction loans, a $4.9 million increase in non-performing multi-family loans, a $2.8 million increase in non-performing commercial loans, a $2.8 million increase in non-performing residential mortgage loans and a $384,000 increase in non-performing consumer loans, partially offset by a $2.4 million decrease in non-performing commercial mortgage loans. These increases were due to the addition of Lakeland, which resulted in additional non-performing loans of $21.4 million. As of June 30, 2024, impaired loans totaled $54.6 million with related specific reserves of $7.7 million, compared with impaired loans totaling $40.1 million with related specific reserves of $8.2 million as of March 31, 2024. As of December 31, 2023, impaired loans totaled $42.8 million with related specific reserves of $2.4 million.
As of June 30, 2024, the Company's allowance for credit losses related to the loan portfolio was 1.00% of total loans, compared to 0.98% and 0.99% as of March 31, 2024 and December 31, 2023, respectively. The allowance for credit losses increased $81.1 million to $188.3 million as of June 30, 2024, from $107.2 million as of December 31, 2023. The increase in the allowance for credit losses on loans as of June 30, 2024 compared to December 31, 2023 was due to a $66.3 million provision for credit losses and a $17.2 million allowance recorded through goodwill related to Purchased Credit Deteriorated loans acquired from Lakeland, partially offset by net charge-offs of $2.3 million.
The following table sets forth accruing past due loans and non-accrual loans on the dates indicated, as well as delinquency statistics and certain asset quality ratios.
June 30, 2024 | March 31, 2024 | December 31, 2023 | |||||||||||||||||||
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 | $ | 1,707 | 3 | $ | 5,052 | 1 | $ | 825 | ||||||||||||
Multi-family mortgage loans | - | - | 4 | 12,069 | 1 | 3,815 | |||||||||||||||
Construction loans | - | - | - | - | - | - | |||||||||||||||
Residential mortgage loans | 9 | 1,714 | 11 | 3,568 | 13 | 3,429 | |||||||||||||||
Total mortgage loans | 12 | 3,421 | 18 | 20,689 | 15 | 8,069 | |||||||||||||||
Commercial loans | 20 | 3,444 | 11 | 4,493 | 6 | 998 | |||||||||||||||
Consumer loans | 38 | 2,891 | 22 | 803 | 31 | 875 | |||||||||||||||
Total 30 to 59 days past due | 70 | $ | 9,756 | 51 | $ | 25,985 | 52 | $ | 9,942 | ||||||||||||
60 to 89 days past due: | |||||||||||||||||||||
Commercial mortgage loans | 3 | $ | 1,231 | 3 | $ | 1,148 | - | $ | - | ||||||||||||
Multi-family mortgage loans | - | - | - | - | 1 | 1,635 | |||||||||||||||
Construction loans | - | - | - | - | - | - | |||||||||||||||
Residential mortgage loans | 10 | 2,193 | 6 | 804 | 8 | 1,208 | |||||||||||||||
Total mortgage loans | 13 | 3,424 | 9 | 1,952 | 9 | 2,843 | |||||||||||||||
Commercial loans | 6 | 1,146 | 3 | 332 | 3 | 198 | |||||||||||||||
Consumer loans | 9 | 648 | 8 | 755 | 5 | 275 | |||||||||||||||
Total 60 to 89 days past due | 28 | 5,218 | 20 | 3,039 | 17 | 3,316 | |||||||||||||||
Total accruing past due loans | 98 | $ | 14,974 | 71 | $ | 29,024 | 69 | $ | 13,258 | ||||||||||||
Non-accrual: | |||||||||||||||||||||
Commercial mortgage loans | 10 | $ | 3,588 | 8 | $ | 5,938 | 7 | $ | 5,151 | ||||||||||||
Multi-family mortgage loans | 5 | 7,276 | 2 | 2,355 | 1 | 744 | |||||||||||||||
Construction loans | 1 | 11,698 | - | - | 1 | 771 | |||||||||||||||
Residential mortgage loans | 20 | 4,447 | 10 | 1,647 | 7 | 853 | |||||||||||||||
Total mortgage loans | 36 | 27,009 | 20 | 9,940 | 16 | 7,519 | |||||||||||||||
Commercial loans | 58 | 39,715 | 21 | 36,892 | 26 | 41,487 | |||||||||||||||
Consumer loans | 24 | 1,144 | 11 | 760 | 10 | 633 | |||||||||||||||
Total non-accrual loans | 118 | $ | 67,868 | 52 | $ | 47,592 | 52 | $ | 49,639 | ||||||||||||
Non-performing loans to total loans | 0.36 | % | 0.44 | % | 0.46 | % | |||||||||||||||
Allowance for loan losses to total non-performing loans | 277.50 | % | 223.63 | % | 215.96 | % | |||||||||||||||
Allowance for loan losses to total loans | 1.00 | % | 0.98 | % | 0.99 | % | |||||||||||||||
As of June 30, 2024 and December 31, 2023, the Company held foreclosed assets of $11.1 million and $11.7 million, respectively. During the six months ended June 30, 2024, there were three properties sold with an aggregate carrying value of $532,000. Foreclosed assets as of June 30, 2024 consisted primarily of commercial real estate. Total non-performing assets as of June 30, 2024 increased $17.7 million to $79.0 million, or 0.33% of total assets, from $61.3 million, or 0.43% of total assets as of December 31, 2023.
Balance Sheet Summary
Total assets as of June 30, 2024 were $24.07 billion, a $9.86 billion increase from December 31, 2023. The increase in total assets was primarily due to the addition of Lakeland.
The Company's loan portfolio totaled $18.76 billion as of June 30, 2024 and $10.87 billion as of December 31, 2023. The loan portfolio consisted of the following:
June 30, 2024 | March 31, 2024 | December 31, 2023 | |||||||||
(Dollars in thousands) | |||||||||||
Mortgage loans: | |||||||||||
Commercial | $ | 7,337,742 | $ | 4,353,799 | $ | 4,512,411 | |||||
Multi-family | 3,189,808 | 1,825,888 | 1,812,500 | ||||||||
Construction | 970,244 | 711,417 | 653,246 | ||||||||
Residential | 2,024,027 | 1,152,185 | 1,164,956 | ||||||||
Total mortgage loans | 13,521,821 | 8,043,289 | 8,143,113 | ||||||||
Commercial loans | 4,617,232 | 2,514,550 | 2,442,406 | ||||||||
Consumer loans | 626,016 | 295,125 | 299,164 | ||||||||
Total gross loans | 18,765,069 | 10,852,964 | 10,884,683 | ||||||||
Premiums on purchased loans | 1,410 | 1,439 | 1,474 | ||||||||
Net deferred fees and unearned discounts | (7,149 | ) | (11,696 | ) | (12,456 | ) | |||||
Total loans | $ | 18,759,330 | $ | 10,842,707 | $ | 10,873,701 | |||||
As part of the merger with Lakeland, we acquired $7.91 billion in loans, net of purchase accounting adjustments. As of June 30, 2024, the acquired Lakeland loan portfolio, net of fair value marks totaled $7.97 billion, which included $3.02 billion in commercial mortgage loans, $1.49 billion in commercial loans, $1.36 billion in multi-family loans, $878.2 million in residential loans, $564.5 million in specialty lending, $327.3 million in construction loans and $327.2 million in consumer loans. Commercial loans, consisting of commercial real estate, multi-family, commercial and construction loans, represented 85.9% of the loan portfolio as of June 30, 2024, compared to 86.5% as of December 31, 2023.
For the six months ended June 30, 2024, loan funding, including advances on lines of credit, totaled $1.84 billion, compared with $1.79 billion for the same period in 2023.
As of June 30, 2024, the Company's unfunded loan commitments totaled $3.01 billion, including commitments of $1.51 billion in commercial loans, $664.7 million in construction loans and $186.6 million in commercial mortgage loans. Unfunded loan commitments as of December 31, 2023 and June 30, 2023 were $2.09 billion and $2.02 billion, respectively.
The loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $1.67 billion as of June 30, 2024, compared to $1.09 billion and $1.74 billion as of December 31, 2023 and June 30, 2023, respectively.
Total investment securities were $3.10 billion as of June 30, 2024, a $963.0 million increase from December 31, 2023. This increase was primarily due to the addition of Lakeland.
Total deposits increased $8.06 billion during the six months ended June 30, 2024, to $18.35 billion. Total savings and demand deposit accounts increased $6.07 billion to $15.27 billion as of June 30, 2024, while total time deposits increased $1.99 billion to $3.08 billion as of June 30, 2024. The increase in savings and demand deposits was largely attributable to a $2.88 billion increase in interest bearing demand deposits, a $1.51 billion increase in non-interest bearing demand deposits, a $1.12 billion increase in money market deposits and a $569.5 million increase in savings deposits. The Company's Insured Cash Sweep deposits increased $619.8 million to $1.14 billion as of June 30, 2024, from $520.2 million as of December 31, 2023. The increase in time deposits consisted of a $2.09 billion increase in retail time deposits, partially offset by a $100.5 million decrease in brokered time deposits.
Borrowed funds increased $332.0 million during the six months ended June 30, 2024, to $2.30 billion. The increase in deposits and borrowings was largely due to the addition of Lakeland. Borrowed funds represented 9.6% of total assets as of June 30, 2024, a decrease from 13.9% as of December 31, 2023.
Stockholders' equity increased $865.1 million during the six months ended June 30, 2024, to $2.56 billion, primarily due to common stock issued for the purchase of Lakeland and net income earned for the period, partially offset by an increase in unrealized losses on available for sale debt securities and cash dividends paid to stockholders. For the three and six months ended June 30, 2024, common stock repurchases totaled 527 shares at an average cost of $15.17 per share and 86,852 shares at an average cost of $14.84 per share, respectively, all of which were made in connection with withholding to cover income taxes on the vesting of stock-based compensation. As of June 30, 2024, approximately 1.0 million shares remained eligible for repurchase under the current stock repurchase authorization. Book value per share and tangible book value per share(1) as of June 30, 2024 were $19.60 and $13.07, respectively, compared with $22.38 and $16.32, respectively, as of December 31, 2023.
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. Provident 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 Friday, July 26, 2024 at 10:00 a.m. Eastern Time to discuss the Company's financial results for the quarter ended June 30, 2024. The call may be accessed by dialing 1-888-412-4131 (United States Toll Free) and 1-646-960-0134 (United States Local). Speakers will need to enter conference ID code (3610756) before being met by a live operator. Internet access to the call is also available (listen only) at provident.bank by going to Investor Relations and clicking on "Webcast."
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 Current Reports on Form 8-K, 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, changes in accounting policies and practices that may be adopted by the regulatory agencies and the accounting standards setters, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, potential goodwill impairment, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets, the availability of and costs associated with sources of liquidity, any failure to realize the anticipated benefits of the merger transaction when expected or at all; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected conditions, factors or events, potential adverse reactions or changes to business, employee, customer and/or counterparty relationships, including those resulting from the completion of the merger and integration of the companies; and the impact of a potential shutdown of the federal government.
The Company cautions readers not to place undue reliance on any such forward-looking statements which speak only as of the date they are made. The Company advises readers that the factors listed above could affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not assume any duty, and does not undertake, to update any forward-looking statements to reflect events or circumstances after the date of this statement.
Footnotes
(1) Annualized adjusted pre-tax, pre-provision return on average assets, average equity and average tangible equity, tangible book value per share, annualized adjusted non-interest expense as a percentage of average assets and the efficiency ratio are non-GAAP financial measures. Please refer to the Notes following the Consolidated Financial Highlights which contain the reconciliation of GAAP to non-GAAP financial measures and the associated calculations.
PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY | |||||||||||||||||||
Consolidated Financial Highlights | |||||||||||||||||||
(Dollars in Thousands, except share data) (Unaudited) | |||||||||||||||||||
At or for the Three Months ended | At or for the Six Months Ended | ||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||
2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
Statement of Income | |||||||||||||||||||
Net interest income | $ | 141,506 | $ | 93,670 | $ | 99,106 | $ | 235,176 | $ | 207,430 | |||||||||
Provision for credit losses | 69,705 | (320 | ) | 9,750 | 69,385 | 16,490 | |||||||||||||
Non-interest income | 22,275 | 20,807 | 19,387 | 43,081 | 41,540 | ||||||||||||||
Non-interest expense | 115,394 | 71,827 | 65,110 | 187,221 | 133,858 | ||||||||||||||
(Loss) income before income tax expense | (21,318 | ) | 42,970 | 43,633 | 21,651 | 98,622 | |||||||||||||
Net (loss) income | (11,485 | ) | 32,082 | 32,003 | 20,596 | 72,539 | |||||||||||||
Diluted earnings per share | $ | (0.11 | ) | $ | 0.43 | $ | 0.43 | $ | 0.23 | $ | 0.97 | ||||||||
Interest rate spread | 2.58 | % | 2.26 | % | 2.60 | % | 2.46 | % | 2.84 | % | |||||||||
Net interest margin | 3.21 | % | 2.87 | % | 3.11 | % | 3.08 | % | 3.29 | % | |||||||||
Profitability | |||||||||||||||||||
Annualized return on average assets | (0.24 | )% | 0.92 | % | 0.93 | % | 0.25 | % | 1.06 | % | |||||||||
Annualized return on average equity | (2.17 | )% | 7.60 | % | 7.76 | % | 2.17 | % | 8.92 | % | |||||||||
Annualized return on average tangible equity(3) | (3.15 | )% | 10.40 | % | 10.75 | % | 3.06 | % | 12.40 | % | |||||||||
Annualized adjusted non-interest expense to average assets(4) | 2.02 | % | 1.99 | % | 1.83 | % | 2.01 | % | 1.91 | % | |||||||||
Efficiency ratio(5) | 57.86 | % | 60.83 | % | 53.29 | % | 59.06 | % | 52.54 | % | |||||||||
Asset Quality | |||||||||||||||||||
Non-accrual loans | $ | 47,592 | $ | 67,868 | $ | 45,928 | |||||||||||||
90+ and still accruing | - | - | - | ||||||||||||||||
Non-performing loans | 47,592 | 67,868 | 45,928 | ||||||||||||||||
Foreclosed assets | 11,324 | 11,119 | 13,697 | ||||||||||||||||
Non-performing assets | 58,916 | 78,987 | 59,625 | ||||||||||||||||
Non-performing loans to total loans | 0.44 | % | 0.36 | % | 0.44 | % | |||||||||||||
Non-performing assets to total assets | 0.42 | % | 0.33 | % | 0.42 | % | |||||||||||||
Allowance for loan losses | $ | 106,429 | $ | 188,331 | $ | 102,073 | |||||||||||||
Allowance for loan losses to total non-performing loans | 223.63 | % | 277.50 | % | 222.25 | % | |||||||||||||
Allowance for loan losses to total loans | 0.98 | % | 1.00 | % | 0.97 | % | |||||||||||||
Net loan charge-offs | $ | 1,340 | $ | 971 | $ | 1,085 | $ | 2,311 | $ | 1,756 | |||||||||
Annualized net loan charge-offs to average total loans | 0.04 | % | 0.04 | % | 0.04 | % | 0.04 | % | 0.03 | % | |||||||||
Average Balance Sheet Data | |||||||||||||||||||
Assets | $ | 19,197,041 | $ | 14,093,767 | $ | 13,833,055 | $ | 16,645,404 | $ | 13,783,159 | |||||||||
Loans, net | 14,649,413 | 10,668,992 | 10,238,224 | 12,659,202 | 10,166,439 | ||||||||||||||
Earning assets | 17,385,819 | 12,862,910 | 12,575,967 | 15,093,217 | 12,497,684 | ||||||||||||||
Core deposits | 12,257,244 | 9,129,244 | 9,297,058 | 10,693,244 | 9,507,756 | ||||||||||||||
Borrowings | 2,158,193 | 1,940,981 | 1,658,809 | 2,049,587 | 1,442,744 | ||||||||||||||
Interest-bearing liabilities | 13,856,039 | 10,074,106 | 9,565,814 | 11,965,072 | 9,416,020 | ||||||||||||||
Stockholders' equity | 2,127,469 | 1,698,170 | 1,653,677 | 1,912,820 | 1,640,099 | ||||||||||||||
Average yield on interest-earning assets | 5.67 | % | 5.06 | % | 4.73 | % | 5.43 | % | 4.68 | % | |||||||||
Average cost of interest-bearing liabilities | 3.09 | % | 2.80 | % | 2.13 | % | 2.97 | % | 1.84 | % | |||||||||
Notes and Reconciliation of GAAP and Non-GAAP Financial Measures (Dollars in Thousands, except share data) |
The Company has presented the following non-GAAP (U.S. Generally Accepted Accounting Principles) financial measures because it believes that these measures provide useful and comparative information to assess trends in the Company's results of operations and financial condition. Presentation of these non-GAAP financial measures is consistent with how the Company evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Company's industry. Investors should recognize that the Company's presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and the Company strongly encourages a review of its condensed consolidated financial statements in their entirety.
(1) Annualized adjusted pre-tax, pre-provision ("PTPP") returns on average assets, average equity and average tangible equity | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
Net (loss) income | $ | (11,485 | ) | $ | 32,082 | $ | 32,003 | $ | 20,596 | $ | 72,539 | |||||||||
Adjustments to net (loss) income: | ||||||||||||||||||||
Provision for credit losses | 69,705 | (320 | ) | 9,750 | 69,385 | 16,490 | ||||||||||||||
Net loss on Lakeland bond sale | 2,839 | - | - | 2,839 | - | |||||||||||||||
Merger-related transaction costs | 18,915 | 2,202 | 1,960 | 21,117 | 3,060 | |||||||||||||||
Income tax (benefit) expense | (9,833 | ) | 10,888 | 11,630 | 1,055 | 26,083 | ||||||||||||||
PTPP income | $ | 70,141 | $ | 44,852 | $ | 55,343 | $ | 114,992 | $ | 118,172 | ||||||||||
Annualized PTPP income | $ | 282,106 | $ | 180,394 | $ | 221,980 | $ | 231,248 | $ | 238,303 | ||||||||||
Average assets | $ | 19,197,041 | $ | 14,093,767 | $ | 13,833,055 | $ | 16,645,404 | $ | 13,783,160 | ||||||||||
Average equity | $ | 2,127,469 | $ | 1,698,170 | $ | 1,653,677 | $ | 1,912,820 | $ | 1,640,099 | ||||||||||
Average tangible equity | $ | 1,468,630 | $ | 1,240,475 | $ | 1,193,812 | $ | 1,354,553 | $ | 1,179,853 | ||||||||||
Annualized PTPP return on average assets | 1.47 | % | 1.28 | % | 1.60 | % | 1.39 | % | 1.73 | % | ||||||||||
Annualized PTPP return on average equity | 13.26 | % | 10.62 | % | 13.42 | % | 12.09 | % | 14.53 | % | ||||||||||
Annualized PTPP return on average tangible equity | 19.21 | % | 14.54 | % | 18.59 | % | 17.07 | % | 20.20 | % | ||||||||||
(2) Book and Tangible Book Value per Share | ||||||||||||||||||||
June 30, | December 31, | |||||||||||||||||||
2024 | 2023 | |||||||||||||||||||
Total stockholders' equity | $ | 2,555,646 | $ | 1,690,596 | ||||||||||||||||
Less: total intangible assets | 851,507 | 457,942 | ||||||||||||||||||
Total tangible stockholders' equity | $ | 1,704,139 | $ | 1,232,654 | ||||||||||||||||
Shares outstanding | 130,380,393 | 75,537,186 | ||||||||||||||||||
Book value per share (total stockholders' equity/shares outstanding) | $ | 19.60 | $ | 22.38 | ||||||||||||||||
Tangible book value per share (total tangible stockholders' equity/shares outstanding) | $ | 13.07 | $ | 16.32 | ||||||||||||||||
(3) Annualized Return on Average Tangible Equity | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
Total average stockholders' equity | $ | 2,127,469 | $ | 1,698,170 | $ | 1,653,677 | $ | 1,912,820 | $ | 1,640,099 | ||||||||||
Less: total average intangible assets | 658,839 | 457,695 | 459,865 | 558,267 | 460,246 | |||||||||||||||
Total average tangible stockholders' equity | $ | 1,468,630 | $ | 1,240,475 | $ | 1,193,812 | $ | 1,354,553 | $ | 1,179,853 | ||||||||||
Net (loss) income | $ | (11,485 | ) | $ | 32,082 | $ | 32,003 | $ | 20,596 | $ | 72,539 | |||||||||
Annualized return on average tangible equity (net income/total average tangible stockholders' equity) | (3.15 | )% | 10.40 | % | 10.75 | % | 3.06 | % | 12.40 | % | ||||||||||
(4) Annualized Adjusted Non-Interest Expense to Average Assets | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
Reported non-interest expense | $ | 115,394 | $ | 71,827 | $ | 65,110 | $ | 187,221 | $ | 133,858 | ||||||||||
Adjustments to non-interest expense: | ||||||||||||||||||||
Merger-related transaction costs | 18,915 | 2,202 | 1,960 | 21,117 | 3,060 | |||||||||||||||
Adjusted non-interest expense | $ | 96,479 | $ | 69,625 | $ | 63,150 | $ | 166,104 | $ | 130,798 | ||||||||||
Annualized adjusted non-interest expense | $ | 388,036 | $ | 280,030 | $ | 253,294 | $ | 334,033 | $ | 263,764 | ||||||||||
Average assets | $ | 19,197,041 | $ | 14,093,767 | $ | 13,833,055 | $ | 16,645,404 | $ | 13,783,160 | ||||||||||
Annualized adjusted non-interest expense/average assets | 2.02 | % | 1.99 | % | 1.83 | % | 2.01 | % | 1.91 | % | ||||||||||
(5) Efficiency Ratio Calculation | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
Net interest income | $ | 141,506 | $ | 93,670 | $ | 99,106 | $ | 235,176 | $ | 207,430 | ||||||||||
Reported non-interest income | 22,275 | 20,807 | 19,387 | 43,081 | 41,540 | |||||||||||||||
Adjustments to non-interest income: | ||||||||||||||||||||
Net loss (gain) on securities transactions | 2,973 | (24 | ) | 1 | 2,974 | (24 | ) | |||||||||||||
Adjusted non-interest income | 25,248 | 20,783 | 19,388 | 46,055 | 41,516 | |||||||||||||||
Total income | $ | 166,754 | $ | 114,453 | $ | 118,494 | $ | 281,231 | $ | 248,946 | ||||||||||
Adjusted non-interest expense | $ | 96,479 | $ | 69,625 | $ | 63,150 | $ | 166,104 | $ | 130,798 | ||||||||||
Efficiency ratio (adjusted non-interest expense/income) | 57.86 | % | 60.83 | % | 53.29 | % | 59.06 | % | 52.54 | % | ||||||||||
PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY | |||||||
Consolidated Statements of Financial Condition | |||||||
June 30, 2024 (Unaudited) and December 31, 2023 | |||||||
(Dollars in Thousands) | |||||||
Assets | June 30, 2024 | December 31, 2023 | |||||
Cash and due from banks | $ | 290,528 | $ | 180,241 | |||
Short-term investments | 33 | 14 | |||||
Total cash and cash equivalents | 290,561 | 180,255 | |||||
Available for sale debt securities, at fair value | 2,626,783 | 1,690,112 | |||||
Held to maturity debt securities, net (fair value of $352,167 as of June 30, 2024 (unaudited) and $352,601 as of December 31, 2023) | 350,528 | 363,080 | |||||
Equity securities, at fair value | 19,250 | 1,270 | |||||
Federal Home Loan Bank stock | 100,068 | 79,217 | |||||
Loans held for sale | 4,450 | 1,785 | |||||
Loans held for investment | 18,759,330 | 10,871,916 | |||||
Less allowance for credit losses | 188,331 | 107,200 | |||||
Net loans | 18,575,449 | 10,766,501 | |||||
Foreclosed assets, net | 11,119 | 11,651 | |||||
Banking premises and equipment, net | 127,396 | 70,998 | |||||
Accrued interest receivable | 93,843 | 58,966 | |||||
Intangible assets | 851,507 | 457,942 | |||||
Bank-owned life insurance | 404,605 | 243,050 | |||||
Other assets | 619,358 | 287,768 | |||||
Total assets | $ | 24,070,467 | $ | 14,210,810 | |||
Liabilities and Stockholders' Equity | |||||||
Deposits: | |||||||
Demand deposits | $ | 13,526,094 | $ | 8,020,889 | |||
Savings deposits | 1,745,158 | 1,175,683 | |||||
Certificates of deposit of $250,000 or more | 871,842 | 218,549 | |||||
Other time deposits | 2,210,150 | 877,393 | |||||
Total deposits | 18,353,244 | 10,292,514 | |||||
Mortgage escrow deposits | 50,694 | 36,838 | |||||
Borrowed funds | 2,302,058 | 1,970,033 | |||||
Subordinated debentures | 412,766 | 10,695 | |||||
Other liabilities | 396,059 | 210,134 | |||||
Total liabilities | 21,514,821 | 12,520,214 | |||||
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 130,380,393 shares outstanding as of June 30, 2024 and 75,537,186 outstanding as of December 31, 2023. | 1,376 | 832 | |||||
Additional paid-in capital | 1,868,643 | 989,058 | |||||
Retained earnings | 957,979 | 974,542 | |||||
Accumulated other comprehensive loss | (139,964 | ) | (141,115 | ) | |||
Treasury stock | (129,115 | ) | (127,825 | ) | |||
Unallocated common stock held by the Employee Stock Ownership Plan | (3,273 | ) | (4,896 | ) | |||
Common Stock acquired by the Directors' Deferred Fee Plan | (2,398 | ) | (2,694 | ) | |||
Deferred Compensation - Directors' Deferred Fee Plan | 2,398 | 2,694 | |||||
Total stockholders' equity | 2,555,646 | 1,690,596 | |||||
Total liabilities and stockholders' equity | $ | 24,070,467 | $ | 14,210,810 | |||
PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY | |||||||||||||||||||
Consolidated Statements of Income | |||||||||||||||||||
Three months ended June 30, 2024, March 31, 2024 and June 30, 2023, and six months ended June 30, 2024 and 2023 (Unaudited) | |||||||||||||||||||
(Dollars in Thousands, except per share data) | |||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||
2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
Interest and dividend income: | |||||||||||||||||||
Real estate secured loans | $ | 156,318 | $ | 107,456 | $ | 99,302 | $ | 263,774 | $ | 195,290 | |||||||||
Commercial loans | 58,532 | 36,100 | 31,426 | 94,632 | 60,109 | ||||||||||||||
Consumer loans | 8,351 | 4,523 | 4,431 | 12,874 | 8,673 | ||||||||||||||
Available for sale debt securities, equity securities and Federal Home Loan Bank stock | 20,394 | 12,330 | 11,432 | 32,724 | 22,862 | ||||||||||||||
Held to maturity debt securities | 2,357 | 2,268 | 2,357 | 4,625 | 4,725 | ||||||||||||||
Deposits, federal funds sold and other short-term investments | 1,859 | 1,182 | 948 | 3,041 | 1,793 | ||||||||||||||
Total interest income | 247,811 | 163,859 | 149,896 | 411,670 | 293,452 | ||||||||||||||
Interest expense: | |||||||||||||||||||
Deposits | 81,058 | 52,534 | 36,447 | 133,592 | 63,957 | ||||||||||||||
Borrowed funds | 20,566 | 17,383 | 14,088 | 37,949 | 21,564 | ||||||||||||||
Subordinated debt | 4,681 | 272 | 255 | 4,953 | 501 | ||||||||||||||
Total interest expense | 106,305 | 70,189 | 50,790 | 176,494 | 86,022 | ||||||||||||||
Net interest income | 141,506 | 93,670 | 99,106 | 235,176 | 207,430 | ||||||||||||||
Provision charge (benefit) for credit losses | 69,705 | (320 | ) | 9,750 | 69,385 | 16,490 | |||||||||||||
Net interest income after provision for credit losses | 71,801 | 93,990 | 89,356 | 165,791 | 190,940 | ||||||||||||||
Non-interest income: | |||||||||||||||||||
Fees | 8,699 | 5,912 | 5,775 | 14,611 | 12,162 | ||||||||||||||
Wealth management income | 7,769 | 7,488 | 6,919 | 15,257 | 13,834 | ||||||||||||||
Insurance agency income | 4,488 | 4,793 | 3,847 | 9,281 | 7,950 | ||||||||||||||
Bank-owned life insurance | 3,323 | 1,817 | 1,534 | 5,140 | 3,018 | ||||||||||||||
Net (loss) gain on securities transactions | (2,973 | ) | (1 | ) | 29 | (2,974 | ) | 24 | |||||||||||
Other income | 969 | 798 | 1,283 | 1,766 | 4,552 | ||||||||||||||
Total non-interest income | 22,275 | 20,807 | 19,387 | 43,081 | 41,540 | ||||||||||||||
Non-interest expense: | |||||||||||||||||||
Compensation and employee benefits | 54,888 | 40,048 | 35,283 | 94,936 | 74,021 | ||||||||||||||
Net occupancy expense | 11,142 | 8,520 | 7,949 | 19,662 | 16,360 | ||||||||||||||
Data processing expense | 8,433 | 6,783 | 5,716 | 15,217 | 11,224 | ||||||||||||||
FDIC Insurance | 3,100 | 2,272 | 2,125 | 5,372 | 4,061 | ||||||||||||||
Amortization of intangibles | 6,483 | 705 | 749 | 7,188 | 1,511 | ||||||||||||||
Advertising and promotion expense | 1,171 | 966 | 1,379 | 2,137 | 2,589 | ||||||||||||||
Merger-related expenses | 18,915 | 2,202 | 1,960 | 21,117 | 3,060 | ||||||||||||||
Other operating expenses | 11,262 | 10,331 | 9,949 | 21,592 | 21,032 | ||||||||||||||
Total non-interest expense | 115,394 | 71,827 | 65,110 | 187,221 | 133,858 | ||||||||||||||
(Loss) Income before income tax expense | (21,318 | ) | 42,970 | 43,633 | 21,651 | 98,622 | |||||||||||||
Income tax (benefit) expense | (9,833 | ) | 10,888 | 11,630 | 1,055 | 26,083 | |||||||||||||
Net (loss) income | $ | (11,485 | ) | $ | 32,082 | $ | 32,003 | $ | 20,596 | $ | 72,539 | ||||||||
Basic earnings per share | $ | (0.11 | ) | $ | 0.43 | $ | 0.43 | $ | 0.23 | $ | 0.97 | ||||||||
Average basic shares outstanding | 102,957,521 | 75,260,029 | 74,823,272 | 89,108,775 | 74,734,795 | ||||||||||||||
Diluted earnings per share | $ | (0.11 | ) | $ | 0.43 | $ | 0.43 | $ | 0.23 | $ | 0.97 | ||||||||
Average diluted shares outstanding | 102,957,521 | 75,275,660 | 74,830,187 | 89,116,590 | 74,766,848 | ||||||||||||||
PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY | ||||||||||||||||||||||||||
Net Interest Margin Analysis | ||||||||||||||||||||||||||
Quarterly Average Balances | ||||||||||||||||||||||||||
(Dollars in Thousands) (Unaudited) | ||||||||||||||||||||||||||
June 30, 2024 | March 31, 2024 | June 30, 2023 | ||||||||||||||||||||||||
Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | ||||||||||||||||||
Interest-Earning Assets: | ||||||||||||||||||||||||||
Deposits | $ | 40,228 | $ | 1,859 | 5.38 | % | $ | 87,848 | $ | 1,182 | 5.41 | % | $ | 73,470 | $ | 947 | 5.17 | % | ||||||||
Federal funds sold and other short-term investments | - | - | - | % | 21 | - | - | % | 88 | 1 | 6.75 | % | ||||||||||||||
Available for sale debt securities | 2,244,725 | 17,646 | 3.14 | % | 1,673,950 | 10,022 | 2.39 | % | 1,801,050 | 10,290 | 2.29 | % | ||||||||||||||
Held to maturity debt securities, net(1) | 352,216 | 2,357 | 2.68 | % | 357,246 | 2,268 | 2.54 | % | 379,958 | 2,357 | 2.48 | % | ||||||||||||||
Equity securities, at fair value | 10,373 | - | - | % | 1,099 | - | - | % | 1,006 | - | - | % | ||||||||||||||
Federal Home Loan Bank stock | 88,864 | 2,747 | 12.36 | % | 73,754 | 2,308 | 12.52 | % | 82,171 | 1,142 | 5.56 | % | ||||||||||||||
Net loans:(2) | ||||||||||||||||||||||||||
Total mortgage loans | 10,674,109 | 156,318 | 5.81 | % | 7,990,218 | 107,456 | 5.33 | % | 7,701,072 | 99,302 | 5.11 | % | ||||||||||||||
Total commercial loans | 3,514,602 | 58,532 | 6.62 | % | 2,381,965 | 36,100 | 6.03 | % | 2,234,043 | 31,426 | 5.59 | % | ||||||||||||||
Total consumer loans | 460,702 | 8,351 | 7.29 | % | 296,809 | 4,523 | 6.13 | % | 303,109 | 4,431 | 5.86 | % | ||||||||||||||
Total net loans | 14,649,413 | 223,201 | 6.05 | % | 10,668,992 | 148,079 | 5.51 | % | 10,238,224 | 135,159 | 5.24 | % | ||||||||||||||
Total interest-earning assets | $ | 17,385,819 | $ | 247,810 | 5.67 | % | $ | 12,862,910 | $ | 163,859 | 5.06 | % | $ | 12,575,967 | $ | 149,896 | 4.73 | % | ||||||||
Non-Interest Earning Assets: | ||||||||||||||||||||||||||
Cash and due from banks | 37,621 | 116,563 | 129,979 | |||||||||||||||||||||||
Other assets | 1,773,601 | 1,114,294 | 1,127,109 | |||||||||||||||||||||||
Total assets | $ | 19,197,041 | $ | 14,093,767 | $ | 13,833,055 | ||||||||||||||||||||
Interest-Bearing Liabilities: | ||||||||||||||||||||||||||
Demand deposits | $ | 7,935,543 | $ | 58,179 | 2.95 | % | $ | 5,894,062 | $ | 41,566 | 2.84 | % | $ | 5,620,268 | $ | 28,613 | 2.04 | % | ||||||||
Savings deposits | 1,454,784 | 832 | 0.23 | % | 1,163,181 | 637 | 0.22 | % | 1,307,830 | 537 | 0.16 | % | ||||||||||||||
Time deposits | 2,086,433 | 22,047 | 4.25 | % | 1,065,170 | 10,331 | 3.90 | % | 968,344 | 7,297 | 3.02 | % | ||||||||||||||
Total Deposits | 11,476,760 | 81,058 | 2.84 | % | 8,122,413 | 52,534 | 2.60 | % | 7,896,442 | 36,447 | 1.85 | % | ||||||||||||||
Borrowed funds | 2,158,193 | 20,565 | 3.83 | % | 1,940,981 | 17,383 | 3.60 | % | 1,658,809 | 14,088 | 3.41 | % | ||||||||||||||
Subordinated debentures | 221,086 | 4,681 | 8.52 | % | 10,712 | 272 | 10.23 | % | 10,563 | 255 | 9.66 | % | ||||||||||||||
Total interest-bearing liabilities | 13,856,039 | 106,304 | 3.09 | % | 10,074,106 | 70,189 | 2.80 | % | 9,565,814 | 50,790 | 2.13 | % | ||||||||||||||
Non-Interest Bearing Liabilities: | ||||||||||||||||||||||||||
Non-interest bearing deposits | 2,866,917 | 2,072,001 | 2,368,960 | |||||||||||||||||||||||
Other non-interest bearing liabilities | 346,616 | 249,490 | 244,604 | |||||||||||||||||||||||
Total non-interest bearing liabilities | 3,213,533 | 2,321,491 | 2,613,564 | |||||||||||||||||||||||
Total liabilities | 17,069,572 | 12,395,597 | 12,179,378 | |||||||||||||||||||||||
Stockholders' equity | 2,127,469 | 1,698,170 | 1,653,677 | |||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 19,197,041 | $ | 14,093,767 | $ | 13,833,055 | ||||||||||||||||||||
Net interest income | $ | 141,506 | $ | 93,670 | $ | 99,106 | ||||||||||||||||||||
Net interest rate spread | 2.58 | % | 2.26 | % | 2.60 | % | ||||||||||||||||||||
Net interest-earning assets | $ | 3,529,780 | $ | 2,788,804 | $ | 3,010,153 | ||||||||||||||||||||
Net interest margin(3) | 3.21 | % | 2.87 | % | 3.11 | % | ||||||||||||||||||||
Ratio of interest-earning assets to total interest-bearing liabilities | 1.25x | 1.28x | 1.31x |
(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. | ||||||||||||||
6/30/24 | 3/31/24 | 12/31/23 | 9/30/23 | 6/30/23 | ||||||||||
2nd Qtr. | 1st Qtr. | 4th Qtr. | 3rd Qtr. | 2nd Qtr. | ||||||||||
Interest-Earning Assets: | ||||||||||||||
Securities | 3.40 | % | 2.87 | % | 2.79 | % | 2.67 | % | 2.53 | % | ||||
Net loans | 6.05 | % | 5.51 | % | 5.50 | % | 5.37 | % | 5.24 | % | ||||
Total interest-earning assets | 5.67 | % | 5.06 | % | 5.04 | % | 4.89 | % | 4.73 | % | ||||
Interest-Bearing Liabilities: | ||||||||||||||
Total deposits | 2.84 | % | 2.60 | % | 2.47 | % | 2.22 | % | 1.85 | % | ||||
Total borrowings | 3.83 | % | 3.60 | % | 3.71 | % | 3.74 | % | 3.41 | % | ||||
Total interest-bearing liabilities | 3.09 | % | 2.80 | % | 2.71 | % | 2.50 | % | 2.13 | % | ||||
Interest rate spread | 2.58 | % | 2.26 | % | 2.33 | % | 2.39 | % | 2.60 | % | ||||
Net interest margin | 3.21 | % | 2.87 | % | 2.92 | % | 2.96 | % | 3.11 | % | ||||
Ratio of interest-earning assets to interest-bearing liabilities | 1.25x | 1.28x | 1.28x | 1.30x | 1.31x | |||||||||
PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY | |||||||||||||||||
Net Interest Margin Analysis | |||||||||||||||||
Average Year to Date Balances | |||||||||||||||||
(Dollars in Thousands) (Unaudited) | |||||||||||||||||
June 30, 2024 | June 30, 2023 | ||||||||||||||||
Average | Average | Average | Average | ||||||||||||||
Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost | ||||||||||||
Interest-Earning Assets: | |||||||||||||||||
Deposits | $ | 32,901 | $ | 3,041 | 5.38 | % | $ | 72,750 | $ | 1,791 | 4.97 | % | |||||
Federal funds sold and other short term investments | - | - | - | % | 59 | 2 | 6.00 | % | |||||||||
Available for sale debt securities | 1,959,549 | 27,669 | 2.82 | % | 1,804,814 | 20,692 | 2.29 | % | |||||||||
Held to maturity debt securities, net(1) | 354,731 | 4,625 | 2.61 | % | 381,921 | 4,725 | 2.47 | % | |||||||||
Equity securities, at fair value | 5,525 | - | - | % | 999 | - | - | % | |||||||||
Federal Home Loan Bank stock | 81,309 | 5,055 | 12.43 | % | 70,702 | 2,170 | 6.14 | % | |||||||||
Net loans:(2) | |||||||||||||||||
Total mortgage loans | 9,326,838 | 263,774 | 5.61 | % | 7,671,493 | 195,290 | 5.07 | % | |||||||||
Total commercial loans | 2,953,842 | 94,632 | 6.39 | % | 2,191,222 | 60,109 | 5.49 | % | |||||||||
Total consumer loans | 378,522 | 12,874 | 6.84 | % | 303,724 | 8,673 | 5.76 | % | |||||||||
Total net loans | 12,659,202 | 371,280 | 5.83 | % | 10,166,439 | 264,072 | 5.18 | % | |||||||||
Total interest-earning assets | $ | 15,093,217 | $ | 411,670 | 5.43 | % | $ | 12,497,684 | $ | 293,452 | 4.68 | % | |||||
Non-Interest Earning Assets: | |||||||||||||||||
Cash and due from banks | 108,229 | 136,431 | |||||||||||||||
Other assets | 1,443,958 | 1,149,044 | |||||||||||||||
Total assets | $ | 16,645,404 | $ | 13,783,159 | |||||||||||||
Interest-Bearing Liabilities: | |||||||||||||||||
Demand deposits | $ | 6,914,802 | $ | 99,745 | 2.90 | % | $ | 5,695,507 | $ | 50,533 | 1.79 | % | |||||
Savings deposits | 1,308,983 | 1,469 | 0.23 | % | 1,352,874 | 990 | 0.15 | % | |||||||||
Time deposits | 1,575,801 | 32,378 | 4.13 | % | 914,358 | 12,434 | 2.74 | % | |||||||||
Total deposits | 9,799,586 | 133,592 | 2.74 | % | 7,962,739 | 63,957 | 1.62 | % | |||||||||
Borrowed funds | 2,049,587 | 37,949 | 3.75 | % | 1,442,744 | 21,564 | 3.01 | % | |||||||||
Subordinated debentures | 115,899 | 4,953 | 8.59 | % | 10,537 | 501 | 9.58 | % | |||||||||
Total interest-bearing liabilities | $ | 11,965,072 | $ | 176,494 | 2.97 | % | $ | 9,416,020 | $ | 86,022 | 1.84 | % | |||||
Non-Interest Bearing Liabilities: | |||||||||||||||||
Non-interest bearing deposits | 2,469,459 | 2,459,375 | |||||||||||||||
Other non-interest bearing liabilities | 298,053 | 267,666 | |||||||||||||||
Total non-interest bearing liabilities | 2,767,512 | 2,727,041 | |||||||||||||||
Total liabilities | 14,732,584 | 12,143,061 | |||||||||||||||
Stockholders' equity | 1,912,820 | 1,640,099 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 16,645,404 | $ | 13,783,160 | |||||||||||||
Net interest income | $ | 235,176 | $ | 207,430 | |||||||||||||
Net interest rate spread | 2.46 | % | 2.84 | % | |||||||||||||
Net interest-earning assets | $ | 3,128,145 | $ | 3,081,664 | |||||||||||||
Net interest margin(3) | 3.08 | % | 3.29 | % | |||||||||||||
Ratio of interest-earning assets to total interest-bearing liabilities | 1.26x | 1.33x | |||||||||||||||
(1) Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses. | |||||||||||||||||
(2) Average outstanding balance are net of the allowance for loan losses, deferred loan fees and expenses, loan premium and discounts and include non-accrual loans. | |||||||||||||||||
(3) Annualized net interest income divided by average interest-earning assets. | |||||||||||||||||
The following table summarizes the year-to-date net interest margin for the previous three years. | ||||||||
Six Months Ended | ||||||||
June 30, 2024 | June 30, 2023 | June 30, 2022 | ||||||
Interest-Earning Assets: | ||||||||
Securities | 3.14 | % | 2.52 | % | 1.59 | % | ||
Net loans | 5.83 | % | 5.18 | % | 3.84 | % | ||
Total interest-earning assets | 5.43 | % | 4.68 | % | 3.33 | % | ||
Interest-Bearing Liabilities: | ||||||||
Total deposits | 2.74 | % | 1.62 | % | 0.26 | % | ||
Total borrowings | 3.75 | % | 3.01 | % | 0.85 | % | ||
Total interest-bearing liabilities | 2.97 | % | 1.84 | % | 0.30 | % | ||
Interest rate spread | 2.46 | % | 2.84 | % | 3.03 | % | ||
Net interest margin | 3.08 | % | 3.29 | % | 3.11 | % | ||
Ratio of interest-earning assets to interest-bearing liabilities | 1.26x | 1.33x | 1.39x | |||||
SOURCE: Provident Financial Services, Inc.
CONTACT: Investor Relations, 1-732-590-9300
Web Site: http://www.Provident.Bank
![](https://ml.globenewswire.com/media/M2Q1YTg1ZDMtN2Q4ZC00OThmLWE2MmQtODc3MjQ2ZWVlMjUxLTEwMzA2ODQ=/tiny/Provident-Financial-Services-I.png)