Core Viewpoint - Provident Financial (PFS) has received a Zacks Rank 1 (Strong Buy) upgrade due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to significant buying or selling activity that impacts stock prices [4]. Company Performance and Outlook - The recent upgrade reflects an improvement in Provident Financial's underlying business, suggesting that investors may respond positively by driving the stock price higher [5]. - The Zacks Consensus Estimate for Provident Financial indicates expected earnings of $2.14 per share for the fiscal year ending December 2025, with a 4% increase in estimates over the past three months [8]. Zacks Rank System - The Zacks Rank system categorizes stocks based on earnings estimate revisions, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Provident Financial's upgrade places it in the top 5% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10].

Core Insights - Provident Financial Services reported strong financial performance for Q2 2025, with GAAP net earnings of $72 million ($0.55 per share) and record revenue of $214 million, indicating robust operational momentum [1][2] Financial Performance - The company achieved a record net interest income (GAAP) of $187 million, supported by an increase in average earning assets of $383 million, reflecting a 7% quarter-over-quarter growth [3] - The net interest margin (NIM) increased by two basis points to 3.36%, with management forecasting a range of 3.35% to 3.45% for the remainder of 2025, despite anticipated Fed rate cuts [4] Loan Growth and Asset Quality - Commercial and industrial (C&I) loans grew at an annualized rate of 21% quarter-over-quarter, while total commercial loans advanced at an 8% annualized rate, indicating diversification in the loan portfolio [5] - Nonperforming assets decreased to 44 basis points of total assets, with net charge-offs dropping to $1.2 million, showcasing improved asset quality [8][9] Strategic Direction - The company is strategically diversifying its commercial lending to reduce concentration in commercial real estate (CRE), with CRE exposure declining to a ratio of 444% [5][7] - A robust loan pipeline of $1.6 billion with a weighted average interest rate of 6.3% positions the company for continued growth [6] Future Outlook - Management reaffirmed core operating expense guidance of $112 million to $115 million per quarter for 2025 and expects to maintain NIM between 3.35% and 3.45% [10] - The CET1 target is set around 11.25%, with strong deposit growth supporting confidence in sustaining commercial loan expansion [11]

Group 1 - The Board of Directors of Provident Financial Services, Inc. declared a quarterly cash dividend of $0.24 per common share, payable on August 29, 2025, to stockholders of record as of the close of business on August 15, 2025 [1] Group 2 - Provident Financial Services, Inc. is the holding company for Provident Bank, which has been providing community-oriented banking services since 1839 [2] - Provident Bank offers a comprehensive array of financial products and services through its branches located in New Jersey, Bucks, Lehigh, and Northampton counties in Pennsylvania, as well as Orange, Queens, and Nassau Counties in New York [2] - The Bank also provides fiduciary and wealth management services through its subsidiary, Beacon Trust Company, and insurance services through its subsidiary, Provident Protection Plus, Inc. [2]

Financial Data and Key Metrics Changes - The company reported net earnings of $72 million or $0.55 per share for the quarter, with an annualized return on average assets of 1.19% and an adjusted return on average tangible equity of 16.79% [4][10] - The pretax pre-provision return on average assets was 1.64%, showing improvement from the previous quarter and the same quarter last year [5][10] - Revenue increased to a record $214 million for the quarter, driven by record net interest income of $187 million and noninterest income of $27 million [10][13] - Tangible book value per share grew by $0.45 to $14.6, and the tangible common equity ratio improved to 8.03% [5][15] Business Line Data and Key Metrics Changes - The commercial lending team closed approximately $764 million in new loans, bringing total production to a record $1.4 billion for the first half of the year, with an annualized growth rate of 8% in the commercial loan portfolio [6][10] - The company’s fee-based businesses performed well, with Provident Protection Plus revenue increasing by 11.3% and income up by 10.1% compared to the same period in 2024 [8] - Beacon Trust revenue declined by 5.2% due to a decrease in average market value of assets under management, but AUM recovered to $4.1 billion by the end of the quarter [9] Market Data and Key Metrics Changes - Deposits increased by $260 million at an annualized growth rate of 5.6%, while the average cost of total deposits decreased to 2.1% [6][12] - The loan pipeline remains robust at approximately $2.6 billion, with a weighted average interest rate stable at 6.3% [7][12] - Nonperforming assets declined to 44 basis points of total assets, with net charge-offs decreasing to $1.2 million or three basis points of average loans [12][13] Company Strategy and Development Direction - The company aims to enhance its asset management capabilities and grow AUM through strategic hiring and integration with existing business lines [19] - There is a focus on organic growth, but the company remains open to M&A opportunities if they align with strategic goals [26] - The company is diversifying its commercial loan portfolio to reduce reliance on commercial real estate, with a current CRE ratio of 408% [7][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining momentum throughout the remainder of 2025, supported by strong capital formation and asset quality [5][9] - The economic forecast has improved, leading to a reserve release and a positive outlook on credit quality [20][23] - Management anticipates modest provisioning in the second half of the year, barring any significant market shifts [21][24] Other Important Information - The effective tax rate for the quarter was 29.7%, with expectations of approximately 29.5% for the remainder of 2025 [14][15] - The company approved a quarterly cash dividend of $0.24 per share, payable on August 29 [5] Q&A Session Summary Question: Changes in Beacon business strategy - Management clarified that there is no significant change in strategy, but a focus on enhancing sales and service to grow AUM [18][19] Question: Provisioning and economic forecasts - The reserve release was primarily driven by improved economic forecasts, particularly in commercial property prices [20] Question: M&A considerations - While the focus is on organic growth, management remains open to M&A opportunities if they align with strategic goals [26] Question: C&I loan growth drivers - Growth in C&I loans is attributed to both new originations and increased line utilization, with a diverse set of products contributing to production [30][34] Question: Wealth management fee performance - Wealth management fees were impacted by lower average AUM due to market volatility, but a recovery is noted [38] Question: Expense guidance for the back half of the year - Management indicated potential for expenses to come in at the lower end of the guidance range due to nonrecurring costs [43] Question: Municipal deposit flow seasonality - Management expects strong municipal deposit flows in the third quarter, with brokered deposits used to manage outflows [44][46] Question: NIM trajectory and competitive environment - The company anticipates NIM improvements despite competitive pressures, with a focus on asset repricing and new loan production [53][62]

Financial Data and Key Metrics Changes - The company reported net earnings of $72 million or $0.55 per share for the quarter, with an annualized return on average assets of 1.19% and an adjusted return on average tangible equity of 16.79% [4][10] - The pretax pre-provision return on average assets was 1.64%, showing improvement from the previous quarter and the same quarter last year [5][10] - Revenue increased to a record $214 million for the quarter, driven by record net interest income of $187 million and noninterest income of $27 million [10][14] - The tangible book value per share grew by $0.45 to $14.6, and the tangible common equity ratio improved to 8.03% [5][14] Business Line Data and Key Metrics Changes - The commercial lending team closed approximately $764 million in new loans, bringing total production to a record $1.4 billion for the first half of the year, with an annualized growth rate of 8% in the commercial loan portfolio [6][10] - The production mix consisted of 20% commercial real estate and 80% commercial and industrial loans [6] - Provident Protection Plus saw an 11.3% increase in revenue for the second quarter, while Beacon Trust revenue declined by 5.2% due to a decrease in average market value of assets under management [8][9] Market Data and Key Metrics Changes - Deposits increased by $260 million on an annualized growth rate of 5.6%, with the average cost of total deposits decreasing to 2.1% [6][12] - The loan pipeline remains robust at approximately $2.6 billion, with a weighted average interest rate stable at 6.3% [7][12] - Nonperforming assets declined to 44 basis points of total assets, with net charge-offs decreasing to $1.2 million or three basis points of average loans [12][13] Company Strategy and Development Direction - The company aims to enhance its asset management business by focusing on growing assets under management (AUM) and integrating better with other business lines [18][19] - The management is open to mergers and acquisitions but is currently focused on organic growth, evaluating strategic options as they arise [26][45] - The company is diversifying its commercial loan portfolio to reduce reliance on commercial real estate [30][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining momentum throughout the remainder of 2025, supported by strong capital formation and credit quality [5][9] - The economic forecast has improved, leading to a reserve release, and management expects modest provisioning in the second half of the year [20][22] - The company does not foresee any immediate slowdown in loan demand, indicating a positive outlook for continued growth [50] Other Important Information - The effective tax rate for the quarter was 29.7%, with expectations to approximate 29.5% for the remainder of 2025 [14] - Noninterest expenses were $114.6 million, with an efficiency ratio improving to 53.5% for the quarter [14] Q&A Session Summary Question: Changes in Beacon business strategy - Management clarified that there is no significant change in strategy but a focus on enhancing sales and service to grow AUM [18][19] Question: Provisioning and economic forecast - The reserve release was primarily driven by improved economic forecasts, particularly the commercial property price index [20] Question: M&A considerations - Management remains open to M&A opportunities but is currently focused on organic growth [26] Question: Drivers of C&I loan growth - The growth in commercial and industrial loans is attributed to a diverse set of products and increased line utilization [29][30] Question: Wealth management fees and AUM - Wealth management fees were impacted by lower average AUM due to market volatility, but there has been a recovery in asset valuations [35] Question: Expense guidance for the second half of the year - Management indicated potential for lower expenses in the back half of the year, influenced by incentive accruals and nonrecurring costs [38] Question: Municipal deposit flow seasonality - Management expects seasonal inflows in municipal deposits and indicated that brokered deposits were used to manage funding needs [39][41] Question: NIM trajectory and competition - The company anticipates NIM improvements despite competitive pressures, with a focus on asset repricing and new loan production [52][56]

[Earnings Summary and Performance Highlights](index=1&type=section&id=Earnings%20Summary%20and%20Performance%20Highlights) Provident Financial Services reported strong earnings for Q2 and H1 2025, significantly improving from 2024 due to the absence of merger-related costs [Earnings Summary](index=1&type=section&id=Earnings%20Summary) Provident Financial Services reported strong earnings for the second quarter and first half of 2025, showing significant improvement compared to the same periods in 2024, largely due to the absence of prior year merger-related costs Quarterly Earnings Comparison | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Income | $72.0 million | $64.0 million | ($11.5 million) | | Basic EPS | $0.55 | $0.49 | ($0.11) | | Diluted EPS | $0.55 | $0.49 | ($0.11) | Six-Month Earnings Comparison | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Income | $136.0 million | $20.6 million | | Basic EPS | $1.04 | $0.23 | | Diluted EPS | $1.04 | $0.23 | - The significant year-over-year improvement is attributed to the absence of transaction costs related to the merger with Lakeland Bancorp, which totaled **$79.0 million for Q2 2024** and **$81.2 million for H1 2024**[1](index=1&type=chunk) [CEO Commentary and Performance Highlights](index=1&type=section&id=CEO%20Commentary%20and%20Performance%20Highlights) The CEO highlighted the company's impressive performance, citing record revenues, expanded margins, and strong asset quality, with key achievements including record revenue of $214.2 million and a 3.36% net interest margin - CEO Anthony J. Labozzetta commented on achieving record revenues by growing earning assets and expanding margins, while improving operational efficiency and maintaining strong asset quality[2](index=2&type=chunk) Q2 2025 Performance Metrics | Metric | Q2 2025 Value | Change vs. Q1 2025 | | :--- | :--- | :--- | | Record Revenue | $214.2 million | - | | Net Interest Income | $187.1 million | - | | Net Interest Margin | 3.36% | +2 bps | | Core Net Interest Margin | 2.93% | -1 bp | | C&I Loan Portfolio Growth (annualized) | 16.26% | - | | Total Commercial Loan Growth (annualized) | 7.98% | - | | Tangible Book Value Per Share | $14.60 | +3.2% | - The company recorded a **$2.7 million benefit to the provision for credit losses**, compared to a **$325,000 provision** in the prior quarter, reflecting improved asset quality[2](index=2&type=chunk) [Results of Operations](index=2&type=section&id=Results%20of%20Operations) This section details the company's financial performance through quarter-over-quarter, year-over-year, and year-to-date comparisons, highlighting key drivers of income and expense changes [Quarter-over-Quarter Comparison (Q2 2025 vs. Q1 2025)](index=2&type=section&id=Quarter-over-Quarter%20Comparison%20(Q2%202025%20vs.%20Q1%202025)) Net income increased to $72.0 million from $64.0 million in the prior quarter, driven by a $5.4 million increase in net interest income, a $1.7 million decrease in non-interest expense, and a significant positive swing in the provision for credit losses Q2 2025 vs Q1 2025 Key Metrics | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Net Income | $72.0 million | $64.0 million | | Diluted EPS | $0.55 | $0.49 | | Net Interest Income | $187.1 million | $181.7 million | | Provision for Credit Losses | ($2.7 million) benefit | $325,000 provision | | Non-Interest Expense | $114.6 million | $116.3 million | | Efficiency Ratio | 53.52% | 54.43% | [Net Interest Income and Net Interest Margin](index=2&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin%20(QoQ)) Net interest income rose by $5.4 million to $187.1 million, and the net interest margin (NIM) expanded by 2 basis points to 3.36%, fueled by new loan originations at higher rates and favorable repricing of adjustable-rate loans - The increase in net interest income was primarily due to originations of new loans at current market rates and the favorable repricing of adjustable rate loans[5](index=5&type=chunk) Net Interest Margin Components (QoQ) | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Net Interest Margin | 3.36% | 3.34% | | Avg. Yield on Interest-Earning Assets | 5.68% | 5.63% | | Avg. Cost of Interest-Bearing Liabilities | 2.94% | 2.90% | [Provision for Credit Losses on Loans](index=2&type=section&id=Provision%20for%20Credit%20Losses%20on%20Loans%20(QoQ)) The company recorded a $2.7 million benefit to the provision for credit losses, a significant improvement from the $325,000 provision in the previous quarter, mainly due to an improved economic forecast and better overall asset quality - The benefit to the provision was primarily attributable to an improved economic forecast and an overall improvement in the Company's asset quality[7](index=7&type=chunk) Net Charge-Offs (QoQ) | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Net Charge-Offs | $1.2 million | $2.0 million | | Annualized Net Charge-Offs to Avg. Loans | 0.03% | 0.04% | [Non-Interest Income and Expense](index=2&type=section&id=Non-Interest%20Income%20and%20Expense%20(QoQ)) Non-interest income remained stable at $27.1 million, while non-interest expense fell by $1.7 million to $114.6 million, primarily due to a prior quarter write-down on a foreclosed property, leading to an improved efficiency ratio of 53.52% - Key changes in non-interest income included a **$1.1 million increase in fee income**, offset by a **$709,000 decrease in insurance agency income** and a **$380,000 decrease in wealth management income**[8](index=8&type=chunk) - The decrease in non-interest expense was mainly due to a prior quarter **$2.7 million write-down on a foreclosed property** and a **$916,000 decrease in net occupancy expense**[9](index=9&type=chunk) Efficiency Ratio (QoQ) | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Efficiency Ratio | 53.52% | 54.43% | [Income Tax Expense](index=3&type=section&id=Income%20Tax%20Expense%20(QoQ)) Income tax expense increased to $30.5 million from $27.8 million due to higher taxable income, though the effective tax rate decreased slightly from 30.3% to 29.7% primarily due to a discrete item related to stock-based compensation Income Tax (QoQ) | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Income Tax Expense | $30.5 million | $27.8 million | | Effective Tax Rate | 29.7% | 30.3% | [Year-over-Year Comparison (Q2 2025 vs. Q2 2024)](index=3&type=section&id=Year-over-Year%20Comparison%20(Q2%202025%20vs.%20Q2%202024)) The company reported net income of $72.0 million, a dramatic turnaround from a net loss of $11.5 million in Q2 2024, primarily due to the absence of $79.0 million in merger-related costs and strong core operations Q2 2025 vs Q2 2024 Key Metrics | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income (Loss) | $72.0 million | ($11.5 million) | | Diluted EPS | $0.55 | ($0.11) | | Merger-Related Costs | $0 | $79.0 million | | Net Interest Income | $187.1 million | $141.5 million | | Provision for Credit Losses | ($2.7 million) benefit | $66.1 million provision | [Net Interest Income and Net Interest Margin](index=3&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin%20(YoY)) Net interest income surged by $45.6 million to $187.1 million, and the net interest margin expanded by 15 basis points to 3.36%, largely driven by the Lakeland acquisition which added earning assets and purchase accounting accretion - The increase in net interest income was largely driven by growth in average earning assets and net assets added in the May 16, 2024 acquisition of Lakeland[12](index=12&type=chunk) Net Interest Margin Components (YoY) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Interest Margin | 3.36% | 3.21% | | Avg. Cost of Interest-Bearing Liabilities | 2.94% | 3.09% | | Avg. Cost of Total Deposits | 2.10% | 2.24% | [Provision for Credit Losses on Loans](index=4&type=section&id=Provision%20for%20Credit%20Losses%20on%20Loans%20(YoY)) A $2.7 million benefit to the provision was recorded, compared to a substantial $66.1 million provision in Q2 2024, with the prior year's provision heavily impacted by a $60.1 million initial CECL provision for the Lakeland merger - The provision for credit losses for the prior year quarter was primarily attributable to an initial CECL provision for credit losses of **$60.1 million**, recorded as part of the Lakeland merger[14](index=14&type=chunk) [Non-Interest Income and Expense](index=4&type=section&id=Non-Interest%20Income%20and%20Expense%20(YoY)) Non-interest income grew by $4.8 million, while non-interest expense decreased by $780,000, driven by the absence of $18.9 million in merger-related expenses which offset increased operating costs from the larger, post-merger entity - Non-interest income increased due to a **$3.0 million net gain on securities transactions** (vs. a prior year loss) and a **$2.0 million increase in fee income** resulting from the Lakeland merger[15](index=15&type=chunk) - Merger-related expenses decreased by **$18.9 million**, partially offset by increases in compensation (**$8.4 million**), other operating expenses (**$3.2 million**), and amortization of intangibles (**$3.0 million**) due to the addition of Lakeland[16](index=16&type=chunk) Efficiency Ratio (YoY) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Efficiency Ratio | 53.52% | 57.86% | [Income Tax Expense](index=5&type=section&id=Income%20Tax%20Expense%20(YoY)) The company recorded a $30.5 million income tax expense compared to a $9.8 million tax benefit in the prior-year quarter, due to significantly higher taxable income and a prior-year tax benefit related to deferred tax assets - The prior year included a **$5.3 million tax benefit** related to the revaluation of deferred tax assets to reflect a new 2.5% Corporate Transit Fee imposed by the state of New Jersey[17](index=17&type=chunk)[18](index=18&type=chunk) [Year-to-Date Comparison (H1 2025 vs. H1 2024)](index=5&type=section&id=Year-to-Date%20Comparison%20(H1%202025%20vs.%20H1%202024)) For the first six months of 2025, net income surged to $136.0 million from $20.6 million in the same period of 2024, reflecting a full six months of combined operations post-merger and the absence of $81.2 million in prior-year merger-related costs H1 2025 vs H1 2024 Key Metrics | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Income | $136.0 million | $20.6 million | | Diluted EPS | $1.04 | $0.23 | | Merger-Related Costs | $0 | $81.2 million | | Net Interest Income | $368.8 million | $235.2 million | | Provision for Credit Losses | ($2.3 million) benefit | $66.3 million provision | [Net Interest Income and Net Interest Margin](index=5&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin%20(YTD)) Net interest income for the six-month period increased by $133.6 million to $368.8 million, with the net interest margin expanding by 27 basis points to 3.35%, primarily driven by the full period impact of the Lakeland acquisition Net Interest Margin Components (YTD) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Interest Margin | 3.35% | 3.08% | | Avg. Yield on Interest-Earning Assets | 5.65% | 5.43% | | Avg. Cost of Interest-Bearing Liabilities | 2.92% | 2.97% | [Provision for Credit Losses on Loans](index=5&type=section&id=Provision%20for%20Credit%20Losses%20on%20Loans%20(YTD)) A $2.3 million benefit to the provision was recorded for H1 2025, compared to a $66.3 million provision in H1 2024, with the prior year's large provision mainly due to the initial $60.1 million CECL provision for the Lakeland merger - The benefit to the provision in H1 2025 was attributed to an improved economic forecast and better asset quality. The prior year's provision was primarily due to the initial CECL provision for the Lakeland merger[22](index=22&type=chunk) [Non-Interest Income and Expense](index=5&type=section&id=Non-Interest%20Income%20and%20Expense%20(YTD)) Non-interest income rose by $11.0 million to $54.1 million, driven by higher fee income and gains on securities, while non-interest expense increased by $43.7 million to $230.9 million, reflecting full operational costs of the combined company - Non-interest income growth was driven by a **$5.8 million increase in fee income** and a **$3.1 million increase in net gains on securities transactions**[23](index=23&type=chunk) - The increase in non-interest expense was primarily due to a **$30.7 million rise in compensation and benefits** from added Lakeland personnel and an **$11.8 million increase in amortization of intangibles**[25](index=25&type=chunk) [Income Tax Expense](index=6&type=section&id=Income%20Tax%20Expense%20(YTD)) Income tax expense for the six-month period was $58.3 million, a significant increase from $1.1 million in the prior year, due to higher taxable income and a prior-year tax benefit related to a new state corporate fee - The increase in tax expense was largely due to higher taxable income, combined with a prior year **$5.3 million tax benefit** related to the revaluation of deferred tax assets[26](index=26&type=chunk) [Asset Quality](index=6&type=section&id=Asset%20Quality) This section assesses the company's credit risk profile, including trends in non-performing loans, non-performing assets, and the allowance for credit losses [Credit Quality Metrics](index=6&type=section&id=Credit%20Quality%20Metrics) Asset quality remained generally stable, with total non-performing loans increasing slightly to $107.2 million or 0.56% of total loans, while the allowance for credit losses decreased to 0.98% of loans, reflecting an improved economic outlook Asset Quality Ratios | Metric | June 30, 2025 | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | :--- | | Non-Performing Loans to Total Loans | 0.56% | 0.54% | 0.37% | | Non-Performing Assets to Total Assets | 0.44% | 0.45% | 0.34% | | Allowance for Credit Losses to Total Loans | 0.98% | 1.02% | 1.04% | - The increase in non-performing loans from the trailing quarter was driven by increases in commercial, residential mortgage, and consumer loans, partially offset by decreases in multi-family and commercial mortgage loans[27](index=27&type=chunk) - The allowance for credit losses decreased by **$5.6 million** since year-end 2024, due to a **$2.3 million benefit to the provision** and **$3.2 million in net charge-offs**[28](index=28&type=chunk) [Balance Sheet Summary](index=8&type=section&id=Balance%20Sheet%20Summary) This section provides an overview of the company's financial position, detailing changes in assets, liabilities, and equity, and key drivers of balance sheet growth [Assets, Liabilities, and Equity](index=8&type=section&id=Assets%2C%20Liabilities%2C%20and%20Equity) Total assets grew by $495.5 million since year-end 2024 to $24.55 billion, primarily funded by increased borrowings and a modest rise in deposits, with stockholders' equity increasing by $106.3 million, boosting tangible book value per share to $14.60 Balance Sheet Changes (since Dec 31, 2024) | Account | Change | Balance as of June 30, 2025 | | :--- | :--- | :--- | | Total Assets | +$495.5 million | $24.55 billion | | Loans Held for Investment | +$445.5 million | $19.10 billion | | Total Deposits | +$84.7 million | $18.71 billion | | Borrowed Funds | +$354.2 million | $2.37 billion | | Stockholders' Equity | +$106.3 million | $2.71 billion | - The loan portfolio growth was led by **commercial loans (+$182.7 million)** and **mortgage warehouse lines (+$63.4 million)** during the second quarter[34](index=34&type=chunk) - The increase in deposits was driven by a **$99.3 million increase in time deposits** (primarily brokered), while savings and demand deposit accounts saw a net decrease of **$14.6 million**[38](index=38&type=chunk)[39](index=39&type=chunk) Per Share Metrics | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Book Value Per Share | $20.73 | $19.93 | | Tangible Book Value Per Share | $14.60 | $13.66 | [Corporate Information and Forward-Looking Statements](index=9&type=section&id=Corporate%20Information%20and%20Forward-Looking%20Statements) This section provides an overview of Provident Financial Services, its banking operations, investor conference call details, and standard disclaimers regarding future projections [Company Overview and Investor Information](index=9&type=section&id=Company%20Overview%20and%20Investor%20Information) This section provides a brief description of Provident Financial Services, Inc. and its primary subsidiary, Provident Bank, along with details for the upcoming post-earnings conference call and standard legal disclaimers regarding forward-looking statements - Provident Financial Services, Inc. is the holding company for Provident Bank, a community-oriented bank established in 1839 with a network of branches across New Jersey, Pennsylvania, and New York[42](index=42&type=chunk) - A conference call for investors was scheduled for **July 24, 2025, at 2:00 p.m. Eastern Time** to discuss the financial results[43](index=43&type=chunk) - The report includes a standard "Forward-Looking Statements" safe harbor provision, cautioning readers about numerous risks and uncertainties that could cause actual results to differ from those projected[44](index=44&type=chunk) [Financial Statements and Supplementary Data](index=11&type=section&id=Financial%20Statements%20and%20Supplementary%20Data) This section provides comprehensive financial statements and detailed supplementary data, including reconciliations of GAAP and non-GAAP measures, for a complete financial overview [Consolidated Financial Highlights](index=11&type=section&id=Consolidated%20Financial%20Highlights) This section presents a comprehensive, one-page summary table of the company's key financial data, including condensed income statement figures, profitability ratios, asset quality metrics, and average balance sheet data for current and comparative periods - The Consolidated Financial Highlights table provides a detailed, unaudited summary of key performance indicators, including net interest income, net income, EPS, profitability ratios (ROA, ROE), asset quality metrics (NPLs, allowance), and average balance sheet data[49](index=49&type=chunk)[50](index=50&type=chunk) [Reconciliation of GAAP and Non-GAAP Financial Measures](index=12&type=section&id=Reconciliation%20of%20GAAP%20and%20Non-GAAP%20Financial%20Measures) This section provides detailed reconciliations of non-GAAP financial measures to their most directly comparable GAAP counterparts, offering transparency on adjustments for items like merger-related costs and intangible asset amortization - The company presents non-GAAP measures to provide useful comparative information on operational trends, which are used internally and by analysts[51](index=51&type=chunk) - Key non-GAAP reconciliations provided include: Annualized Adjusted Return on Average Assets, Equity, and Tangible Equity; Annualized adjusted pre-tax, pre-provision (PTPP) returns; Tangible Common Equity Ratio and Tangible Book Value per Share; Efficiency Ratio Calculation[52](index=52&type=chunk)[53](index=53&type=chunk)[57](index=57&type=chunk) [Consolidated Financial Statements](index=14&type=section&id=Consolidated%20Financial%20Statements) This section contains the primary unaudited financial statements, including the Consolidated Statements of Financial Condition as of June 30, 2025, and December 31, 2024, and the Consolidated Statements of Income for the three and six-month periods ending June 30, 2025 and 2024 - The Consolidated Statements of Financial Condition provide a detailed balance sheet, itemizing assets (e.g., cash, securities, loans) and liabilities & equity (e.g., deposits, borrowings, retained earnings)[58](index=58&type=chunk)[59](index=59&type=chunk) - The Consolidated Statements of Income present a detailed breakdown of revenues and expenses, including interest income/expense, provision for credit losses, non-interest income/expense, and net income[60](index=60&type=chunk) [Net Interest Margin Analysis](index=16&type=section&id=Net%20Interest%20Margin%20Analysis) This section provides a detailed analysis of the company's net interest margin (NIM), including tables breaking down average balances, interest income/expense, and average yields/costs for all categories of interest-earning assets and interest-bearing liabilities for quarterly and year-to-date periods - Provides a detailed quarterly breakdown of average balances, interest, and yields/costs for assets like loans and securities, and liabilities like deposits and borrowings, to analyze the components of the net interest margin[61](index=61&type=chunk)[62](index=62&type=chunk) - Includes a summary table tracking the net interest margin and its key components over the previous five quarters, highlighting trends in asset yields and liability costs[64](index=64&type=chunk)[65](index=65&type=chunk) - Presents a year-to-date analysis comparing the current six-month period to the prior year, along with a summary table comparing year-to-date NIM for the last three years[66](index=66&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk)

Core Viewpoint - Provident Financial reported quarterly earnings of $0.55 per share, exceeding the Zacks Consensus Estimate of $0.50 per share, and showing significant growth from $0.06 per share a year ago, indicating a positive earnings surprise of +10.00% [1] Financial Performance - The company achieved revenues of $214.17 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.67% and reflecting a year-over-year increase from $163.78 million [2] - Over the last four quarters, Provident Financial has exceeded consensus EPS estimates two times and topped revenue estimates once [2] Stock Performance and Outlook - Provident Financial shares have declined approximately 3.2% year-to-date, contrasting with the S&P 500's gain of 8.1% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the revisions of earnings estimates [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $0.53, with projected revenues of $218.08 million, and for the current fiscal year, the estimate is $2.06 on revenues of $861.2 million [7] Industry Context - The Financial - Savings and Loan industry, to which Provident Financial belongs, is currently ranked in the bottom 26% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Core Viewpoint - Provident Financial Services, Inc. reported strong financial performance for the second quarter of 2025, with significant increases in net income and record revenues driven by growth in earning assets and improved operational efficiency [1][2]. Financial Performance - For the three months ended June 30, 2025, net income was $72.0 million, or $0.55 per share, compared to $64.0 million, or $0.49 per share for the previous quarter, and a net loss of $11.5 million, or $(0.11) per share for the same quarter in 2024 [1][3][13]. - For the six months ended June 30, 2025, net income totaled $136.0 million, or $1.04 per share, compared to $20.6 million, or $0.23 per share for the same period in 2024 [22]. Revenue and Income - The company achieved record revenue of $214.2 million for the quarter, with net interest income of $187.1 million and non-interest income of $27.1 million [6][9]. - Net interest income increased by $5.4 million from the previous quarter, primarily due to new loan originations at current market rates [4][14]. Interest Margin - The net interest margin increased to 3.36% for the quarter ended June 30, 2025, up from 3.34% in the previous quarter and 3.21% in the same quarter last year [5][15]. - The weighted average yield on interest-earning assets rose to 5.68%, while the cost of interest-bearing liabilities increased to 2.94% [5][25]. Asset Quality - The company recorded a $2.7 million benefit to the provision for credit losses on loans for the quarter, compared to a provision of $66.1 million for the same quarter in 2024 [8][17]. - Non-performing loans as of June 30, 2025, were $107.2 million, or 0.56% of total loans, compared to $72.1 million, or 0.37% of total loans as of June 30, 2024 [30][32]. Non-Interest Income and Expenses - Non-interest income totaled $27.1 million for the quarter, an increase of $4.8 million compared to the same period in 2024, driven by higher fee income and net gains on securities transactions [18][27]. - Non-interest expense decreased to $114.6 million for the quarter, down from $116.3 million in the previous quarter, primarily due to lower merger-related expenses [10][19]. Tax Expense - The income tax expense for the quarter was $30.5 million, with an effective tax rate of 29.7%, compared to $27.8 million and 30.3% in the previous quarter [12][21]. Balance Sheet Highlights - Total assets as of June 30, 2025, were $24.55 billion, an increase of $495.5 million from December 31, 2024, primarily due to an increase in loans held for investment [37]. - The company's loans held for investment portfolio totaled $19.10 billion as of June 30, 2025, reflecting growth in commercial loans and mortgage warehouse lines [38][39].

ISELIN, N.J., July 22, 2025 (GLOBE NEWSWIRE) -- Provident Bank, a leading New Jersey-based financial institution, has announced the appointment of Maheshkumar Kandasamy as SVP, Enterprise Architecture Director. Mr. Kandasamy will provide technical leadership, oversee the bank's enterprise and business solutions architecture function, and play a key role in developing technology strategies. He will report to Satish Harikrishnan, SVP, Technology Services Director. In this role, Mr. Kandasamy will be instrumen ...

Core Viewpoint - The market anticipates Provident Financial (PFS) to report a year-over-year increase in earnings driven by higher revenues for the quarter ending June 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The earnings report is expected on July 24, with a consensus EPS estimate of $0.50, reflecting a significant year-over-year increase of +733.3%. Revenues are projected to be $212.75 million, up 29.9% from the previous year [3]. - The consensus EPS estimate has been revised 1.28% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Provident Financial is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +3.03%. However, the stock holds a Zacks Rank of 4, complicating predictions of an earnings beat [12]. - A positive Earnings ESP is generally a strong predictor of an earnings beat, especially when combined with a favorable Zacks Rank [10]. Historical Performance - In the last reported quarter, Provident Financial was expected to post earnings of $0.47 per share but exceeded expectations with earnings of $0.50, resulting in a surprise of +6.38%. However, the company has only beaten consensus EPS estimates once in the last four quarters [13][14]. Conclusion - While the company is not positioned as a compelling earnings-beat candidate, it is essential for investors to consider various factors beyond earnings expectations when making investment decisions [17].