UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended 9/30/2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-31566 PROVIDENT FINANCIAL SERVICES, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 42-1547151 (State or Other Jurisdictio ...

Financial Data and Key Metrics Changes - The company reported net income of $43.4 million, or $0.58 per diluted share, compared to $39.2 million or $0.53 per share in the previous quarter and $37.3 million or $0.49 per share in the same quarter last year [18] - Record revenue of $138 million was achieved, driven by record net interest income of $109 million and an $8.6 million gain on the sale of a foreclosed property [20] - The net interest margin increased by 30 basis points from the previous quarter to 3.51% [21] Business Line Data and Key Metrics Changes - Commercial lending remains a primary focus, with approximately $533 million in new loans closed during the quarter, leading to a 3.9% annualized growth in the commercial loan portfolio [7][8] - The fee-based business line, Provident Protection Plus, saw a 19% increase in revenue and a 31% increase in operating profit compared to the same quarter last year [13] - Beacon Trust experienced a decline in fee income by $239,000 or 3.4% due to unfavorable market conditions [14] Market Data and Key Metrics Changes - The average balance of core deposits increased by $89 million or 3.6% annualized during the quarter [11] - The total cost of deposits increased by 15 basis points to 35 basis points, with a deposit beta of 10% for the quarter [22] - The average cost of total interest-bearing liabilities increased by 23 basis points to 2.54% [23] Company Strategy and Development Direction - The company announced a merger with Lakeland Bancorp, aiming to create a significant community banking organization in the Tristate region [15] - The management emphasized the importance of maintaining a strong customer experience and integrating cultures post-merger to minimize disruption [64] Management Comments on Operating Environment and Future Outlook - Management expressed optimism for loan growth in the fourth quarter, citing a strong pipeline and expected normal pull-through [36] - Concerns were raised about rising interest rates and their potential impact on the industry, particularly regarding pipeline pull-through [10] - The company remains committed to strong risk management practices amid deteriorating market conditions [14] Other Important Information - Non-accrual loans increased by $19.1 million, primarily due to one significant loan, but overall asset quality metrics remain strong compared to the previous year [26] - The efficiency ratio improved to 47.11% for the third quarter, down from 53.83% in the previous quarter [28] Q&A Session Summary Question: Loan growth expectations for the fourth quarter - Management expects loan growth to pick up in the fourth quarter, noting that the third quarter is typically the lowest production quarter of the year [36] Question: Deposit betas and strategy - Management believes a deposit beta of 23% is conservative and anticipates some acceleration in the industry as liquidity decreases [39] Question: Non-accruals in the commercial real estate book - The increase in non-accruals is attributed to a single credit, which management considers a one-off situation [50][51] Question: Assets under management and net flows - Assets under management fell to approximately $3.2 million due to market conditions, with a net loss of 10 clients [53] Question: Provision outlook for the next quarters - Management expects provisions to moderate, estimating $3 million to $5 million based on the economic outlook [56]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended 6/30/2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-31566 PROVIDENT FINANCIAL SERVICES, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 42-1547151 (State or Other Jurisdictio ...

Provident Financial Services, Inc. (NYSE:PFS) Q2 2022 Earnings Conference Call July 29, 2022 10:00 AM ET Company Participants Adriano Duarte - Investor Relations Tony Labozzetta - President and Chief Executive Officer Tom Lyons - Senior Executive Vice President and Chief Financial Officer Conference Call Participants Mark Fitzgibbon - Piper Sandler Michael Perito - KBW Billy Young - RBC Manuel Navas - DA Davidson Operator Good morning and welcome to today’s Provident Financial Services, Inc. Second Quarter ...

[PART I—FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) This section presents the company's unaudited financial statements, management's analysis, market risk, and internal controls [Financial Statements](index=3&type=section&id=Item%201.%20FINANCIAL%20STATEMENTS.) This section presents the unaudited consolidated financial statements, detailing the company's financial position and performance for Q1 2022 [Consolidated Statements of Financial Condition](index=3&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) This statement provides a snapshot of the company's assets, liabilities, and equity at specific points in time Consolidated Balance Sheet Summary (in thousands) | Account | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$13,617,014** | **$13,781,202** | | Net Loans | $9,586,607 | $9,500,884 | | Total Investments (AFS & HTM) | $2,494,295 | $2,494,001 | | Total Cash and Cash Equivalents | $433,146 | $712,463 | | **Total Liabilities** | **$11,995,883** | **$12,084,106** | | Total Deposits | $11,366,087 | $11,234,012 | | Borrowed Funds | $399,606 | $626,774 | | **Total Stockholders' Equity** | **$1,621,131** | **$1,697,096** | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) This statement details the company's revenues, expenses, and net income over a specific period Consolidated Income Statement Summary (in thousands, except per share data) | Account | Three months ended March 31, 2022 | Three months ended March 31, 2021 | | :--- | :--- | :--- | | Net Interest Income | $94,526 | $90,000 | | Provision Benefit for Credit Losses | $(6,405) | $(15,001) | | Non-interest Income | $20,148 | $21,637 | | Non-interest Expense | $61,886 | $61,853 | | **Net Income** | **$43,962** | **$48,559** | | **Diluted Earnings Per Share** | **$0.58** | **$0.63** | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) This statement presents the total change in equity from non-owner sources, including net income and other comprehensive income - Total comprehensive loss for Q1 2022 was **$(30.8) million**, a significant shift from a comprehensive income of **$43.9 million** in Q1 2021. This was primarily driven by a **$(74.8) million** other comprehensive loss, mainly from net unrealized losses on available for sale debt securities[12](index=12&type=chunk) [Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) This statement details the changes in the company's equity accounts over a period, including net income, dividends, and other comprehensive income - Stockholders' equity decreased from **$1.70 billion** at the end of 2021 to **$1.62 billion** at March 31, 2022. The decrease was primarily due to a **$(74.8) million** other comprehensive loss, **$(29.0) million** in treasury stock purchases, and **$(18.7) million** in cash dividends, partially offset by **$44.0 million** in net income[17](index=17&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This statement reports the cash generated and used by the company from operating, investing, and financing activities Summary of Cash Flows (in thousands) | Cash Flow Activity | Three months ended March 31, 2022 | Three months ended March 31, 2021 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $51,135 | $36,416 | | Net Cash used in Investing Activities | $(192,437) | $(90,596) | | Net Cash (used in) provided by Financing Activities | $(138,015) | $209,397 | | **Net (Decrease) Increase in Cash** | **$(279,317)** | **$155,217** | [Notes to Unaudited Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section provides detailed explanations and additional information regarding the figures presented in the financial statements - The notes provide detailed disclosures on significant accounting policies, including the Current Expected Credit Loss (CECL) methodology, which significantly influences the allowance for credit losses and earnings volatility. They also detail the composition of investment securities, loans, deposits, derivatives, and fair value measurements[24](index=24&type=chunk)[29](index=29&type=chunk)[91](index=91&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=45&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance and condition, explaining key drivers for changes in net income, assets, and equity Key Performance Indicators | Metric | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Net Income | $44.0 million | $48.6 million | | Diluted EPS | $0.58 | $0.63 | | Net Interest Income | $94.5 million | $90.0 million | | Net Interest Margin | 3.02% | 3.05% | - The decrease in the provision benefit for credit losses on loans to **$6.4 million** in Q1 2022 from **$15.0 million** in Q1 2021 was a primary driver of lower net income. This change reflects the relative shift in the economic outlook compared to the significant favorable impact of the post-pandemic recovery in the prior year period[202](index=202&type=chunk) - Total assets decreased by **$164.2 million** from year-end 2021, mainly due to a **$279.3 million** decrease in cash and cash equivalents, which was used to fund an **$81.3 million** increase in total loans and repay borrowings[171](index=171&type=chunk) - Stockholders' equity decreased by **$76.0 million** in Q1 2022, driven by dividends, common stock repurchases totaling **1.28 million shares**, and an increase in unrealized losses on available-for-sale debt securities[183](index=183&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=52&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the company's exposure to market risks, primarily interest rate risk, and its strategies for managing these exposures - The company's interest rate risk strategy involves selling long-term (20-30 year) fixed-rate residential mortgages while retaining shorter-term loans. Commercial loans generally have rates that reset within five years or are tied to variable indices like Prime or SOFR (formerly LIBOR)[207](index=207&type=chunk) Net Interest Income Sensitivity (12-Month Projection) | Rate Change (bps) | Dollar Change (in thousands) | Percent Change | | :--- | :--- | :--- | | +300 | $19,359 | 4.9% | | +200 | $13,052 | 3.3% | | +100 | $6,672 | 1.7% | | -100 | $(12,487) | (3.2)% | Economic Value of Equity Sensitivity (Immediate Shock) | Rate Change (bps) | Dollar Change (in thousands) | Percent Change | | :--- | :--- | :--- | | +300 | $148,026 | 6.6% | | +200 | $109,752 | 4.9% | | +100 | $70,060 | 3.1% | | -100 | $(140,636) | (6.3)% | [Controls and Procedures](index=54&type=section&id=Item%204.%20Controls%20and%20Procedures) Management assessed the effectiveness of the company's disclosure controls and procedures, concluding they were effective as of March 31, 2022 - The Principal Executive Officer and Principal Financial Officer have concluded that the company's disclosure controls and procedures are **effective** as of March 31, 2022[214](index=214&type=chunk) [PART II—OTHER INFORMATION](index=54&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) This section provides additional information including legal proceedings, risk factors, equity security sales, and exhibits [Legal Proceedings](index=54&type=section&id=Item%201.%20Legal%20Proceedings) This section outlines the company's involvement in legal actions and claims, which are not expected to materially impact its financial condition - Ongoing legal actions are **not expected to materially impact** the company's financial condition[216](index=216&type=chunk) [Risk Factors](index=54&type=section&id=Item%201A.%20Risk%20Factors) This section confirms that no material changes have occurred to the risk factors previously disclosed in the company's latest annual report - No changes were reported to the risk factors from the **2021 Form 10-K**[217](index=217&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=54&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's common stock repurchases during Q1 2022 and the remaining shares authorized under its repurchase program Issuer Purchases of Equity Securities (Q1 2022) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January 2022 | 38,169 | $23.49 | | February 2022 | 163,423 | $23.12 | | March 2022 | 1,080,483 | $23.40 | | **Total** | **1,282,075** | **$23.36** | - As of March 31, 2022, approximately **1.9 million shares** remained available for repurchase under the company's ninth general repurchase program, which has no expiration date[183](index=183&type=chunk)[219](index=219&type=chunk) [Exhibits](index=54&type=section&id=Item%206.%20Exhibits) This section lists all documents filed as exhibits to the Form 10-Q, including required certifications and financial data formats - Key exhibits filed include CEO and CFO certifications under Sarbanes-Oxley Sections 302 and 906, and financial data in iXBRL format[224](index=224&type=chunk)

Financial Data and Key Metrics Changes - The company reported earnings of $0.58 per share for Q1 2022, an increase from $0.49 per share in the previous quarter but a decrease from $0.63 per share in Q1 2021 [14] - Net income for the quarter was $44 million, compared to $37.3 million in the previous quarter and $49.8 million in the same quarter last year [14] - The annualized return on average assets was 1.3% and return on average tangible equity was 14.58% [5] Business Line Data and Key Metrics Changes - The commercial lending group closed approximately $502 million in new loans, a 61% increase from the same quarter last year [6] - The commercial loan portfolio, excluding PPP loans, grew at an annualized rate of 8.3% [7] - Non-interest bearing deposits grew at an annualized rate of 8.7%, comprising about 25% of total deposits [8] Market Data and Key Metrics Changes - The total cost of deposits declined by 2 basis points to 19 basis points, which is among the best in the peer group [8] - The company anticipates continued interest rate hikes by the Federal Reserve in 2022, positioning itself well for rising rates [9] Company Strategy and Development Direction - The company aims to enhance customer experience and grow all business lines, particularly in commercial lending [6] - Digital initiatives are being implemented to modernize business processes and improve efficiency [11] - The company is focused on improving its asset mix and expects rising interest rates to positively impact net interest income [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong performance driven by a healthy economic forecast and improvements in credit metrics [5] - The company expects solid loan growth throughout 2022 despite competitive market conditions and rising interest rates [7] - Management noted that the economic forecast from Moody's showed further improvement, suggesting potential for additional smaller releases in provisions for credit losses [41] Other Important Information - The company repurchased approximately 1.3 million shares of common stock at an average price of $23.36 per share [5] - The efficiency ratio for Q1 2022 was 56.05%, compared to 54.74% in the previous quarter [21] Q&A Session Summary Question: Impact of accretable yield this quarter and last quarter - Last quarter was 7 basis points and the current quarter is 6 basis points [27] Question: Assets under management and net flows - Assets under management at the end of the quarter were $3.9 billion, with an average decline of $59,000 [31] Question: Margin outlook with PPP income declining - Management expects the margin to continue to build into Q2, with a projected NIM of 3.12 to 3.15 for next quarter [32] Question: Loan growth outlook for the year - The company anticipates solid loan growth, with a significant portion of growth expected in the first half of the year [60] Question: Operating expense run rate and digital investments - The expected expense run rate for the next quarter is in the $63 million to $64 million range [43] Question: Noninterest income run rate going forward - A safe number for noninterest income is projected to be $20 million to $21 million, with potential for upside [73] Question: Corporate culture and ESG initiatives - Management emphasized the importance of corporate culture and is actively looking at ESG disclosures [76] Question: Deposit beta perspective and margin expectations - The all-in deposit beta is about 23%, with potential for upside as rates increase [83] Question: Acquisitive appetite in wealth management or insurance - The company is actively looking for strategic fits in wealth management and insurance [87]

Part I [Item 1. Business](index=3&type=section&id=Item%201.%20Business) The company is a community-focused bank holding company operating in NJ, PA, and NY with an emphasis on commercial lending and wealth management [Company and Bank Overview](index=3&type=section&id=Company%20and%20Bank%20Overview) The company focuses on capital management and diversified services following the significant SB One Bancorp acquisition - On July 31, 2020, the Company completed its acquisition of SB One Bancorp, adding **$2.20 billion in assets**, **$1.77 billion in loans**, and **$1.76 billion in deposits**[14](index=14&type=chunk) 2021 Capital Management Activities | Metric | Value | | :--- | :--- | | Cash Dividends Paid | $71.5 million | | Shares Repurchased | 965,223 | | Average Repurchase Cost | $22.43 per share | | Total Repurchase Cost | $21.6 million | | Shares Remaining for Repurchase (as of Dec 31, 2021) | 3.2 million | Key Operational Highlights (as of Dec 31, 2021) | Metric | 2021 Value | 2020 Value | | :--- | :--- | :--- | | Non-Performing Assets | $56.8 million | $91.6 million | | Non-Performing Assets / Total Assets | 0.41% | 0.71% | | Core Deposit Accounts | $10.54 billion | $8.74 billion | | Core Deposits as % of Total Deposits | 93.8% | 88.9% | | Total Non-Interest Income | $86.8 million | $72.4 million | [Market Area and Competition](index=5&type=section&id=Market%20Area%20and%20Competition) The company operates within a diversified but highly competitive market across New Jersey, Pennsylvania, and New York - The Bank operates **96 full-service banking offices** across New Jersey, Pennsylvania, and New York, with lending activities concentrated in these areas[26](index=26&type=chunk) - The Bank faces **intense competition** from a high concentration of financial institutions, including large money center banks, community banks, and non-bank entities like mortgage and investment firms[29](index=29&type=chunk) Unemployment Rates in Key Markets (Year-End) | State | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | New Jersey | 6.3% | 7.6% | | Pennsylvania | 5.4% | 6.7% | | New York | 6.2% | 8.2% | [Lending Activities](index=5&type=section&id=Lending%20Activities) The bank's lending strategy centers on a diversified portfolio with a primary focus on commercial real estate loans - To manage interest rate risk, the Bank generally sells fixed-rate residential mortgages with terms greater than 15 years and retains adjustable-rate mortgages and shorter-term fixed-rate loans[32](index=32&type=chunk)[43](index=43&type=chunk) - The Bank participated in the Paycheck Protection Program (PPP), securing $681.9 million in loans for customers; as of December 31, 2021, **$587.0 million of these loans had been forgiven**[62](index=62&type=chunk) - The regulatory lending limit to a single borrower was $186.6 million as of December 31, 2021; the Bank's largest group exposure was **$124.6 million**[75](index=75&type=chunk)[76](index=76&type=chunk) Loan Portfolio Composition (Net) at December 31, 2021 | Loan Category | Amount (in thousands) | Percent of Total | | :--- | :--- | :--- | | Commercial mortgage loans | $3,827,370 | 40.28% | | Commercial loans | $2,188,866 | 23.04% | | Multi-family mortgage loans | $1,364,397 | 14.36% | | Residential mortgage loans | $1,202,638 | 12.66% | | Construction loans | $683,166 | 7.19% | | Consumer loans | $327,442 | 3.45% | | **Total Loans, Net** | **$9,500,884** | **100.00%** | [Asset Quality](index=13&type=section&id=Asset%20Quality) Asset quality improved significantly in 2021, driven by a decrease in non-performing assets and a negative provision for credit losses - The company adopted the **CECL methodology** on January 1, 2020, which replaced the incurred loss model with an expected loss model for recognizing credit losses[101](index=101&type=chunk) Non-Performing Assets Trend | Metric | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Total non-performing loans | $48.0 million | $87.1 million | | Foreclosed assets | $8.7 million | $4.5 million | | **Total non-performing assets** | **$56.8 million** | **$91.6 million** | | % of total assets | 0.41% | 0.71% | | % of total loans | 0.50% | 0.89% | Analysis of Allowance for Credit Losses (ACL) | (In thousands) | 2021 | 2020 | | :--- | :--- | :--- | | Balance at beginning of period | $101,466 | $55,525 | | Provision (benefit) charge | ($24,300) | $29,711 | | Net (recoveries) charge-offs | ($3,574) | $5,276 | | **Balance at end of period** | **$80,740** | **$101,466** | | ACL to total loans | 0.84% | 1.03% | [Investment Activities](index=20&type=section&id=Investment%20Activities) The investment strategy focuses on managing liquidity and interest rate risk with a portfolio of high-quality securities - The investment strategy aims to maximize return while complementing the Bank's lending activities and managing interest rate risk; the policy **does not permit below-investment-grade securities**[121](index=121&type=chunk)[122](index=122&type=chunk) Securities Portfolio Composition (Amortized Cost) | Security Type | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Held to Maturity** | | | | State and municipal obligations | $415.7 million | $433.7 million | | Other HTM | $20.5 million | $27.4 million | | **Available for Sale** | | | | Mortgage-backed securities | $1,711.3 million | $910.4 million | | U.S. Treasury obligations | $196.9 million | $0 | | Other AFS | $150.0 million | $163.2 million | | **Total (Amortized Cost)** | **$2,494.4 million** | **$1,524.7 million** | [Sources of Funds](index=23&type=section&id=Sources%20of%20Funds) The company relies on low-cost core deposits as its primary funding source, complemented by borrowings and other funds - Core deposits grew to **93.8% of total deposits** at Dec 31, 2021, up from 88.9% at Dec 31, 2020[139](index=139&type=chunk) - As part of the SB One acquisition, the company assumed subordinated debentures; the outstanding balance was **$10.3 million** at Dec 31, 2021, down from $25.1 million at year-end 2020[147](index=147&type=chunk)[148](index=148&type=chunk)[149](index=149&type=chunk) Borrowed Funds Summary | (In thousands) | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | FHLBNY advances & line of credit | $510,014 | $1,076,036 | | Securities sold under repurchase agreements | $116,760 | $99,936 | | **Total borrowed funds** | **$626,774** | **$1,175,972** | [Subsidiaries, Human Capital, and Regulation](index=25&type=section&id=Subsidiaries%2C%20Human%20Capital%2C%20and%20Regulation) The company operates key subsidiaries and faces heightened regulatory oversight after crossing the $10 billion asset threshold - Key subsidiaries include **Beacon Trust Company** for wealth management and **SB One Insurance Company Inc.** for insurance brokerage services[150](index=150&type=chunk)[156](index=156&type=chunk) - As of December 31, 2021, the Company had 1,119 full-time and 40 part-time employees; the company promotes diversity, with **women holding 63% of managerial positions**[157](index=157&type=chunk)[161](index=161&type=chunk) - Exceeding **$10 billion in assets** in 2020 subjected the Company to increased supervision, including direct oversight by the Consumer Financial Protection Bureau (CFPB)[165](index=165&type=chunk)[240](index=240&type=chunk) - Both the Company and the Bank were considered **"well capitalized"** under all applicable regulatory standards as of December 31, 2021[185](index=185&type=chunk)[247](index=247&type=chunk) [Item 1A. Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from interest rates, credit concentrations, heightened regulatory scrutiny, and operational challenges - **Economic & Interest Rate Risks:** The company's results are highly sensitive to changes in market interest rates, which affect net interest income and could be negatively impacted by a flattening yield curve[275](index=275&type=chunk)[278](index=278&type=chunk) - **Credit Risks:** The loan portfolio has significant concentrations in **commercial real estate (54.6%)**, **commercial & industrial (23.0%)**, and **construction (7.2%)**, which carry higher risk[280](index=280&type=chunk) - **Regulatory Risks:** As an institution with over $10 billion in assets, the company is subject to heightened regulation by the CFPB, increasing operating costs and compliance burdens[285](index=285&type=chunk)[287](index=287&type=chunk)[292](index=292&type=chunk) - **Business & Operational Risks:** The ongoing impact of the COVID-19 pandemic, geographic concentration, the planned cessation of LIBOR, and intense competition pose significant risks[293](index=293&type=chunk)[300](index=300&type=chunk)[304](index=304&type=chunk)[313](index=313&type=chunk) - **Technology & Security Risks:** The company is highly dependent on technology and third-party providers, making it vulnerable to cyber-attacks, data breaches, and system failures[317](index=317&type=chunk)[324](index=324&type=chunk) [Item 1B. Unresolved Staff Comments](index=50&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved comments from the staff of the Securities and Exchange Commission - There are no unresolved comments from the staff of the SEC to report[329](index=329&type=chunk) [Item 2. Properties](index=50&type=section&id=Item%202.%20Properties) The company operates 96 branch offices and leases its executive and administrative headquarters - At December 31, 2021, the Bank operated 96 full-service branch offices and several loan production offices; the aggregate net book value of premises and equipment was **$80.6 million**[330](index=330&type=chunk) [Item 3. Legal Proceedings](index=50&type=section&id=Item%203.%20Legal%20Proceedings) Ongoing legal actions are not expected to have a material adverse impact on the company's financial condition - Management does not expect ongoing legal actions and claims, which arise in the normal course of business, to have a material adverse impact on the Company's financial condition[332](index=332&type=chunk) [Item 4. Mine Safety Disclosures](index=50&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[333](index=333&type=chunk) Part II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=50&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's stock trades on the NYSE, with active dividend payments and share repurchases in 2021 - The company's common stock (NYSE: PFS) had approximately 4,735 stockholders of record as of February 1, 2022; a quarterly cash dividend of **$0.24 per share** was declared[336](index=336&type=chunk)[337](index=337&type=chunk) - For the full year 2021, the company repurchased 965,223 shares at a total cost of **$21.7 million**; 3.2 million shares remained eligible for repurchase[342](index=342&type=chunk) Issuer Purchases of Equity Securities (Q4 2021) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Oct 2021 | — | $— | | Nov 2021 | — | $— | | Dec 2021 | 289,843 | $23.43 | | **Total Q4** | **289,843** | **$23.43** | [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=53&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Net income increased substantially in 2021, driven by higher net interest income and a negative provision for credit losses - The significant increase in 2021 net income was primarily driven by a **$53.5 million increase in net interest income** and a **negative provision for credit losses of $24.3 million**[401](index=401&type=chunk) Financial Performance Summary | Metric | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Net Income | $167.9M | $97.0M | $112.6M | | Diluted EPS | $2.19 | $1.39 | $1.74 | | Net Interest Income | $366.0M | $312.6M | $298.0M | | Net Interest Margin | 3.00% | 3.05% | 3.35% | Financial Condition Highlights (Year-End) | Metric | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Total Assets | $13.78 billion | $12.92 billion | | Total Loans | $9.58 billion | $9.82 billion | | Total Deposits | $11.23 billion | $9.84 billion | | Stockholders' Equity | $1.70 billion | $1.62 billion | [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=66&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages its asset-sensitive balance sheet to mitigate interest rate risk, primarily through its lending strategies - The company's interest rate risk management strategy includes selling long-term fixed-rate residential mortgages while retaining shorter-term or adjustable-rate loans[432](index=432&type=chunk) Projected 12-Month Net Interest Income Sensitivity (as of Dec 31, 2021) | Rate Change (Basis Points) | Projected NII Change ($) | Projected NII Change (%) | | :--- | :--- | :--- | | +300 | +$22.4 million | +6.1% | | +200 | +$15.1 million | +4.1% | | +100 | +$7.6 million | +2.1% | | -100 | -$13.6 million | -3.7% | Economic Value of Equity (EVE) Sensitivity (as of Dec 31, 2021) | Rate Change (Basis Points) | Projected EVE Change ($) | Projected EVE Change (%) | | :--- | :--- | :--- | | +300 | +$214.3 million | +11.9% | | +200 | +$155.0 million | +8.6% | | +100 | +$88.5 million | +4.9% | | -100 | -$197.6 million | -10.9% | [Item 8. Financial Statements and Supplementary Data](index=68&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the audited consolidated financial statements and the independent auditor's unqualified opinion for fiscal year 2021 - The independent auditor, KPMG LLP, issued an **unqualified opinion** on the consolidated financial statements and on the effectiveness of internal control over financial reporting[446](index=446&type=chunk)[458](index=458&type=chunk) - A critical audit matter identified was the assessment of the **allowance for credit losses**, due to the high degree of subjective and complex judgment involved[452](index=452&type=chunk)[454](index=454&type=chunk) Consolidated Statement of Financial Condition Highlights | (In billions) | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Total Assets | $13.78 | $12.92 | | Net Loans | $9.50 | $9.72 | | Total Deposits | $11.23 | $9.84 | | Total Liabilities | $12.08 | $11.30 | | Total Stockholders' Equity | $1.70 | $1.62 | Consolidated Statement of Income Highlights | (In millions) | 2021 | 2020 | | :--- | :--- | :--- | | Net Interest Income | $366.0 | $312.6 | | Provision (benefit) for credit losses | ($24.3) | $29.7 | | Non-interest Income | $86.8 | $72.4 | | Non-interest Expense | $250.1 | $227.7 | | **Net Income** | **$167.9** | **$97.0** | [Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=146&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure matters - None reported[775](index=775&type=chunk) [Item 9A. Controls and Procedures](index=146&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls, procedures, and internal controls over financial reporting were effective - The Principal Executive Officer and Principal Financial Officer concluded that the Company's disclosure controls and procedures were **effective** as of December 31, 2021[776](index=776&type=chunk) - Management's assessment concluded that the Company's internal control over financial reporting was **effective** as of December 31, 2021, based on the COSO framework[780](index=780&type=chunk) [Item 9B. Other Information](index=147&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[783](index=783&type=chunk) Part III [Items 10-14](index=148&type=section&id=Items%2010%2C%2011%2C%2012%2C%2013%2C%20and%2014) Required information on governance and compensation is incorporated by reference from the company's 2022 Proxy Statement - Information for Items 10, 11, 12, 13, and 14 is **incorporated by reference** from the Proxy Statement for the Annual Meeting of Stockholders[787](index=787&type=chunk)[788](index=788&type=chunk)[789](index=789&type=chunk)[793](index=793&type=chunk)[794](index=794&type=chunk) Part IV [Item 15. Exhibits and Financial Statement Schedules](index=149&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed as part of the annual report - This item lists all financial statements, schedules, and exhibits filed with the annual report, including corporate governance documents and material agreements[797](index=797&type=chunk)[800](index=800&type=chunk) [Item 16. Form 10-K Summary](index=151&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable to the company - Not applicable[802](index=802&type=chunk)

Provident Financial Services, Inc. (NYSE:PFS) Q4 2021 Earnings Conference Call January 28, 2022 10:00 AM ET Company Participants Adriano Duarte - Investor Relations Officer Tony Labozzetta - President & Chief Executive Officer Tom Lyons - Senior Executive Vice President & Chief Financial Officer Conference Call Participants Mark Fitzgibbon - Piper Sandler Michael Perito - KBW Russell Gunther - D.A. Davidson Erik Zwick - Boenning & Scattergood Operator Good day and welcome to the Provident Financial Services ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended 9/30/2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-31566 PROVIDENT FINANCIAL SERVICES, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 42-1547151 (State or Other Jurisdictio ...

Provident Financial Services, Inc. (NYSE:PFS) Q3 2021 Earnings Conference Call October 29, 2021 10:00 AM ET Company Participants Adriano Duarte - Investor Relations Chris Martin - Chairman and Chief Executive Officer Tony Labozzetta - President and Chief Operating Officer Tom Lyons - Senior Executive Vice President and Chief Financial Officer Conference Call Participants Mark Fitzgibbon - Piper Sandler Michael Perito - KBW Steven Duong - RBC Capital Markets Russell Gunther - D.A. Davidson Operator Good morn ...