Provident Financial Services(US:PFS)2025-04-25 14:32Financial Performance - For the first quarter of 2025, the company reported net income of $64.0 million, or $0.49 per share, compared to $48.5 million, or $0.37 per share, for the previous quarter, and $32.1 million, or $0.43 per share, for the same quarter last year[1][14] - Net income for the three months ended March 31, 2025, was $64,028,000, an increase of 32% compared to $48,524,000 for the previous quarter[52] - Stockholders' equity rose by $57.6 million to $2.66 billion, primarily due to net income earned during the period[34] - The diluted earnings per share for the quarter was $0.49, compared to $0.37 in the previous quarter[41] - Income tax expense for the three months ended March 31, 2025, was $27.8 million with an effective tax rate of 30.3%, compared to $10.9 million and 25.3% for the same period in 2024[20] Asset and Loan Growth - Total assets as of March 31, 2025, were $24.22 billion, a $172.9 million increase from December 31, 2024[28] - The total commercial and industrial loan portfolio increased by $74.3 million, or 6.5% annualized, to $4.68 billion as of March 31, 2025[3] - Loan funding for the three months ended March 31, 2025, totaled $1.93 billion, compared to $622.7 million for the same period in 2024[29] - The loan pipeline totaled $2.77 billion as of March 31, 2025, compared to $1.79 billion as of December 31, 2024[31] - Unfunded loan commitments totaled $2.88 billion as of March 31, 2025, up from $2.73 billion as of December 31, 2024[30] Income and Expense Analysis - Non-interest income totaled $27.0 million for the quarter ended March 31, 2025, an increase of $6.2 million compared to the same period in 2024[18] - Non-interest income increased to $27.0 million, up 12% from $24.2 million in the previous quarter[41] - For the three months ended March 31, 2025, non-interest expense totaled $116.3 million, an increase of $44.4 million compared to the same period in 2024[19] - The Company's annualized adjusted non-interest expense as a percentage of average assets was 1.92% for the quarter ended March 31, 2025, down from 1.99% for the same period in 2024[20] - Adjusted non-interest expense for the three months ended March 31, 2025, was $113,577,000, slightly down from $114,139,000 in the previous quarter[47] Credit Quality - The company recorded a provision for credit losses on loans of $325,000 for the quarter ended March 31, 2025, a significant decrease from $7.8 million for the previous quarter[9] - Total non-performing loans as of March 31, 2025, were $103.2 million, or 0.54% of total loans, up from $72.1 million, or 0.39% as of December 31, 2024[21] - The allowance for credit losses related to the loan portfolio was 1.02% of total loans as of March 31, 2025, compared to 1.04% as of December 31, 2024[22] Efficiency and Margins - The efficiency ratio for the quarter ended March 31, 2025, was 54.43%, compared to 55.43% for the previous quarter[13] - The net interest margin increased by six basis points to 3.34% for the quarter ended March 31, 2025, from 3.28% for the previous quarter[3][8] - The net interest margin for the three months ended March 31, 2025, was 3.34%, compared to 2.87% in the same period last year[62] - The net interest rate spread improved to 2.73% compared to 2.63% in the previous quarter[57] Dividends and Shareholder Returns - The board of directors declared a quarterly cash dividend of $0.24 per common share, payable on May 30, 2025[5] - Book value per share increased to $20.35 as of March 31, 2025, compared to $19.93 at December 31, 2024[48] - Tangible book value per share rose to $14.15 as of March 31, 2025, up from $13.66 in the previous quarter[48] Future Outlook - The company plans to hold a conference call on April 25, 2025, to discuss financial results and future outlook[36]