Provident Financial Services(PFS) - 2024 Q2 - Quarterly Results

Financial Performance - The Company reported a net loss of $11.5 million, or $0.11 per share, for the three months ended June 30, 2024, compared to net income of $32.1 million, or $0.43 per share, for the three months ended March 31, 2024[7]. - The Company's net income for the six months ended June 30, 2024, was $20.6 million, or $0.23 per share, down from $72.5 million, or $0.97 per share, for the same period in 2023[45]. - The net loss for the quarter was $11.49 million, compared to a net income of $32.00 million in the same quarter last year, resulting in a negative shift in profitability[61]. - Basic earnings per share for the three months ended June 30, 2024, was $(0.11), down from $0.43 in the same period last year[94]. Income and Revenue - Net interest income increased by $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 net assets acquired from Lakeland[6]. - Net interest income for the quarter ended June 30, 2024, was $141.51 million, an increase from $99.11 million in the same quarter last year, representing a 42.7% year-over-year growth[61]. - Total interest income for the three months ended June 30, 2024, was $247,811, an increase from $149,896 in the same period last year, representing a 65% year-over-year growth[94]. - Non-interest income totaled $22.3 million for the quarter ended June 30, 2024, an increase of $1.5 million from the previous quarter[39]. - Total non-interest income increased to $22,275 for the three months ended June 30, 2024, up from $19,387 in the same period last year, marking a growth of 10%[94]. Assets and Loans - The Company's loans held for investment totaled $18.76 billion as of June 30, 2024, an increase from $10.84 billion as of March 31, 2024, due to the acquisition of $7.91 billion in loans from Lakeland[13]. - Total loans reached $18.76 billion as of June 30, 2024, an increase from $10.84 billion in the first quarter of 2024[77]. - The loan portfolio totaled $18.76 billion as of June 30, 2024, with the Lakeland merger contributing $7.91 billion in loans[52]. - The loan pipeline totaled $1.67 billion as of June 30, 2024, compared to $1.09 billion as of March 31, 2024[53]. Expenses and Provisions - Non-interest expense totaled $115.4 million for the three months ended June 30, 2024, an increase of $50.3 million compared to the same period in 2023, primarily due to the addition of Lakeland[23]. - 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[12]. - Provision for credit losses was $69.71 million, compared to a provision of $9.75 million in the same quarter last year, indicating a significant increase in credit loss provisions[61]. - Total non-interest expense rose to $115,394 for the three months ended June 30, 2024, compared to $65,110 in the same period last year, indicating a significant increase of 77%[94]. Asset Quality - Non-performing loans to total loans decreased to 0.36% as of June 30, 2024, compared to 0.44% as of March 31, 2024[16]. - Total non-performing assets increased by $17.7 million to $79.0 million, representing 0.33% of total assets as of June 30, 2024, compared to 0.43% as of December 31, 2023[31]. - The allowance for credit losses related to the loan portfolio was 1.00% of total loans as of June 30, 2024, compared to 0.98% as of March 31, 2024[29]. Capital and Equity - Stockholders' equity increased by $865.1 million to $2.56 billion, primarily due to common stock issued for the purchase of Lakeland and net income earned[83]. - The company’s common stock outstanding increased to 130.38 million shares as of June 30, 2024, from 75.54 million shares at the end of 2023[66]. - Book value per share decreased to $19.60 from $22.38, while tangible book value per share fell to $13.07 from $16.32 as of December 31, 2023[91]. Deposits and Funding - Total deposits rose to $18.35 billion, compared to $10.29 billion, marking an increase of 78.5%[66]. - The Company's total deposits reached $18.35 billion as of June 30, 2024, up from $10.10 billion as of March 31, 2024, with $8.62 billion acquired through the merger with Lakeland[105]. - Insured Cash Sweep deposits increased by $619.8 million to $1.14 billion as of June 30, 2024[81]. - Retail time deposits increased by $2.09 billion, partially offset by a $100.5 million decrease in brokered time deposits[81]. Market and Economic Conditions - The company cautions that forward-looking statements are subject to numerous risks and uncertainties that could materially affect financial performance[85].