Provident Financial Services(US:PFS)2025-05-08 16:40Financial Performance - Net income for the three months ended March 31, 2025, was $64,028 thousand, a 99.6% increase compared to $32,082 thousand for the same period in 2024[10]. - Basic earnings per share increased to $0.49 for Q1 2025, up from $0.43 in Q1 2024, marking a growth of 13.95%[10]. - The company reported a total comprehensive income of $89,137 thousand for Q1 2025, significantly higher than $21,612 thousand in Q1 2024[13]. - Net income for the three months ended March 31, 2025, was $64,028,000, a 100% increase compared to $32,082,000 for the same period in 2024[21]. - Non-interest income totaled $27,030 thousand for Q1 2025, an increase of 29.5% from $20,807 thousand in Q1 2024[10]. - Total non-interest expense rose to $116,267 thousand in Q1 2025, compared to $71,827 thousand in Q1 2024, reflecting an increase of 62%[10]. - For the three months ended March 31, 2025, total interest income increased to $305.346 million, up 86.1% from $163.859 million in the same period of 2024[156]. - The total in-scope non-interest income for the three months ended March 31, 2025, was $18.870 million, compared to $16.285 million for the same period in 2024, reflecting a growth of 15.9%[146]. Asset and Deposit Changes - Total assets increased to $24,224,759 thousand as of March 31, 2025, up from $24,051,825 thousand as of December 31, 2024, representing a growth of 0.72%[9]. - Total deposits decreased to $18,448,863 thousand as of March 31, 2025, down from $18,623,813 thousand as of December 31, 2024, a decline of 0.94%[9]. - The company reported a net decrease in deposits of $174,950,000 in Q1 2025, compared to a decrease of $193,622,000 in Q1 2024[22]. - Total deposits as of March 31, 2025, were $18,448,863 million, down from $18,623,813 million as of December 31, 2024, reflecting a decrease of approximately 0.94%[79]. - Stockholders' equity increased by $57.6 million to $2.66 billion due to net income and a decrease in unrealized losses on debt securities[197]. Loan and Credit Quality - Loans held for investment increased to $7.91 billion as of March 31, 2025, compared to $7.23 billion as of December 31, 2024[52]. - The total gross loans amounted to $18,800,956, an increase from $18,667,570 as of December 31, 2024, representing a growth of approximately 0.71%[54]. - The company recorded a provision for credit losses of $325,000 for the three months ended March 31, 2025, compared to $200,000 for the same period in 2024, reflecting an increase in specific reserves on impaired credits[57]. - Non-performing loans rose to $99.3 million, or 0.54% of total loans, as of March 31, 2025, compared to $72.1 million, or 0.39% as of December 31, 2024[192]. - The allowance for credit losses related to the loan portfolio was 1.02% of total loans as of March 31, 2025, down from 1.04% as of December 31, 2024[191]. - The total criticized and classified loans reached $236.891 million as of March 31, 2025[70]. - The total amount of substandard loans was $3,044 million, compared to $2,397 million in 2024, indicating a rise in riskier loans[74]. Mergers and Acquisitions - The merger with Lakeland Bancorp, completed on May 16, 2024, involved a total consideration of $876.8 million, with 54,356,954 shares converted[34]. - Goodwill recorded from the Lakeland acquisition totaled $180.4 million, reflecting the excess of the purchase price over the estimated fair value of net assets acquired[35]. - The company completed its merger with Lakeland Bancorp on May 16, 2024, adding $10.59 billion in total assets and $7.91 billion in total loans[161]. - The total consideration paid for the acquisition of Lakeland was $876.8 million, with goodwill recorded at $180.4 million after adjustments[162][163]. Borrowings and Interest Expenses - The company experienced a net increase in short-term borrowings of $570,356,000 in Q1 2025, compared to $88,065,000 in Q1 2024[22]. - Total borrowed funds increased to $2,336,191 million as of March 31, 2025, compared to $2,020,435 million as of December 31, 2024, representing a growth of about 15.9%[80]. - Interest expense on borrowings for the three months ended March 31, 2025, was $18.3 million, compared to $17.4 million for the same period in 2024, indicating an increase of approximately 5.2%[83]. - The company’s total long-term borrowings were $510.6 million as of March 31, 2025, compared to $513.9 million as of December 31, 2024, showing a slight decrease of about 0.6%[80]. Securities and Investments - Total available for sale debt securities amounted to $2,878.8 million as of March 31, 2025, an increase from $2,768.9 million as of December 31, 2024[110]. - The fair value of mortgage-backed securities increased to $2,255.8 million as of March 31, 2025, from $2,062.2 million as of December 31, 2024[110]. - The company holds equity securities valued at $19.2 million as of March 31, 2025, slightly up from $19.1 million as of December 31, 2024[110]. - The total held to maturity debt securities, net of allowance for credit losses, was $314,005 thousand with a fair value of $301,190 thousand as of March 31, 2025[125]. Risk Management and Forward-Looking Statements - The company cautions that forward-looking statements are subject to numerous risks, including economic conditions and regulatory changes, which could materially affect financial performance[159][160]. - Fair value estimates are subjective and involve uncertainties, which may significantly affect the estimates[120].