Provident Financial Services(PFS) - 2025 Q3 - Quarterly Results

Financial Performance - The Company reported net income of $71.7 million, or $0.55 per basic and diluted share for Q3 2025, compared to $46.4 million, or $0.36 per share for Q3 2024, representing a 54.0% year-over-year increase[1][13] - Record revenue of $221.8 million was achieved for Q3 2025, up from $214.2 million in the previous quarter, driven by net interest income of $194.3 million and non-interest income of $27.4 million[3][10] - Net income for the nine months ended September 30, 2025, was $207.7 million, or $1.59 per share, compared to $67.0 million, or $0.65 per share, for the same period in 2024[21] - Net income for the three months ended September 30, 2025, was $78.36 million, a significant increase from $54.96 million in the same period last year, reflecting a year-over-year growth of 42.5%[58] Interest Income and Margin - The net interest margin increased by seven basis points to 3.43% for Q3 2025, compared to 3.36% for the previous quarter[4][7] - Net interest income increased by $144.3 million to $563.2 million for the nine months ended September 30, 2025, driven by growth in average earning assets[22] - The net interest margin increased by 20 basis points to 3.38% for the nine months ended September 30, 2025, compared to 3.18% for the same period in 2024[23] - Net interest income for the three months ended September 30, 2025, was $194,332, an increase from $183,701 for the same period in 2024, representing a growth of 5.6%[53] Non-Interest Income and Expenses - Non-interest income totaled $27.4 million for Q3 2025, an increase of $344,000 compared to the previous quarter[10] - Non-interest expense decreased by $1.5 million to $113.1 million for Q3 2025, compared to $114.6 million for the previous quarter[11] - Non-interest income for the nine months ended September 30, 2025, totaled $81.5 million, an increase of $11.6 million compared to the same period in 2024[25] - Adjusted non-interest expense for the three months ended September 30, 2025, was $113.09 million, down from $136.00 million in Q3 2024, a decrease of 16.8%[59] Asset Quality and Credit Losses - The Company recorded a $7.0 million provision for credit losses for Q3 2025, compared to a $2.9 million benefit in the previous quarter[8][9] - The provision for credit losses on loans was $2.2 million for the nine months ended September 30, 2025, significantly lower than the $75.9 million provision for the same period in 2024[24] - Total non-performing loans as of September 30, 2025, were $100.4 million, or 0.52% of total loans, a decrease from $107.2 million, or 0.56%, as of June 30, 2025[29] - The allowance for credit losses related to the loan portfolio was 0.97% of total loans as of September 30, 2025, down from 1.04% as of December 31, 2024[30] Deposits and Loans - Total deposits rose by $387.7 million, or 8.22% annualized, to $19.10 billion as of September 30, 2025[3] - The Company's commercial and industrial loan portfolio increased by $149.0 million, or 12.61% annualized, to $4.84 billion as of September 30, 2025[3] - Total deposits increased to $19.10 billion as of September 30, 2025, up from $18.62 billion at December 31, 2024, reflecting a growth of 2.53%[62] - Loan funding for the nine months ended September 30, 2025, totaled $7.00 billion, significantly higher than $2.53 billion for the same period in 2024[38] Capital and Equity - Stockholders' equity grew by $165.8 million to $2.77 billion, primarily due to net income earned during the period[44] - Tangible common equity ratio improved to 8.22% in Q3 2025, compared to 7.67% in Q4 2024, indicating a stronger capital position[57] - Total tangible stockholders' equity rose to $1.98 billion as of September 30, 2025, up from $1.78 billion at December 31, 2024, a growth of 11.0%[57] Efficiency and Returns - The efficiency ratio for the three months ended September 30, 2025, improved to 51.01% from 57.20% in the same period of 2024, indicating enhanced operational efficiency[53] - The annualized return on average tangible equity for the three months ended September 30, 2025, was 16.01%, up from 12.06% in the same period of 2024, showing an improvement of 32.4%[53] - The annualized adjusted return on average assets for the three months ended September 30, 2025, was 1.16%, consistent with the previous quarter but up from 0.95% in the same period of 2024[55]