Provident Financial Services(US:PFS)2025-11-06 18:21Financial Performance - Net income for the three months ended September 30, 2025, was $71,720 thousand, a significant increase of 54.5% compared to $46,405 thousand in the prior year[10]. - Basic earnings per share increased to $0.55 for the three months ended September 30, 2025, compared to $0.36 for the same period in 2024, marking a growth of 52.8%[10]. - Net income for the nine months ended September 30, 2025, was $207,729,000, a significant increase from $67,001,000 in 2024, representing a growth of approximately 209%[21]. - Net income for the three months ended September 30, 2025, was $71.72 million, compared to $46.41 million in 2024, marking a 54.4% increase[167]. - Non-interest income for the three months ended September 30, 2025, totaled $27,419,000, an increase from $26,855,000 in the same period of 2024[157]. - Non-interest income for the nine months ended September 30, 2025, was $81.52 million, up from $69.94 million in 2024, indicating a 16.5% increase[167]. Asset and Loan Growth - Total assets increased to $24,832,763 thousand as of September 30, 2025, up from $24,051,825 thousand as of December 31, 2024, representing a growth of 3.2%[9]. - Net loans rose to $19,113,427 thousand, an increase of 2.6% from $18,628,391 thousand at the end of 2024[9]. - Total gross loans held for investment reached $19,295,970,000, showing a growth from $18,711,909,000 in 2024[79]. - Total mortgage loans as of September 30, 2025, amounted to $13,550.92 million, slightly up from $13,445.15 million as of December 31, 2024[54]. - The total commercial mortgage loans classified as pass/watch were $7,318,725,000, compared to $2,901,059,000 in 2021, indicating a substantial increase[76]. Deposits and Borrowings - Total deposits grew to $19,096,244 thousand, reflecting an increase of 2.5% compared to $18,623,813 thousand as of December 31, 2024[9]. - Total deposits increased to $19.10 billion as of September 30, 2025, up from $18.62 billion as of December 31, 2024, representing a growth of 2.53%[84]. - Total borrowed funds amounted to $2.21 billion as of September 30, 2025, compared to $2.02 billion as of December 31, 2024, indicating an increase of 9.36%[85]. Credit Quality and Losses - The provision charge for credit losses was $7,044 thousand for the three months ended September 30, 2025, down from $9,299 thousand in the same period of 2024, indicating improved credit quality[10]. - The allowance for credit losses at the end of September 30, 2025, was $186.97 million, a decrease from $191.18 million at the end of September 30, 2024[58]. - The company recorded net charge-offs of $5.4 million for the three months ended September 30, 2025, compared to $7.32 million for the same period in 2024[59]. - Total non-performing loans increased to $100.4 million, or 0.52% of total loans, as of September 30, 2025, up from $72.1 million, or 0.39% of total loans, as of December 31, 2024[205]. - 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[206]. Merger and Acquisitions - The merger with Lakeland Bancorp, Inc. was completed on May 16, 2024, with a total consideration of $876.8 million, converting 54,356,954 shares[34]. - The total assets acquired in the merger were valued at $10.59 billion, while total liabilities assumed were $9.72 billion, resulting in net assets acquired of $876.8 million[37]. - The total consideration paid for the acquisition of Lakeland was $876.8 million, with $190.9 million recorded as goodwill[172][173]. Comprehensive Income - Total comprehensive income for the three months ended September 30, 2025, was $88,247 thousand, compared to $93,320 thousand in the same period of 2024[14]. - For the three months ended September 30, 2025, total other comprehensive income was $16,527, compared to $46,915 for the same period in 2024, reflecting a decrease of 64.8%[12]. - For the nine months ended September 30, 2025, total other comprehensive income was $48,112, slightly up from $48,066 in 2024, indicating a marginal increase of 0.1%[139]. Securities and Investments - The fair value of available for sale debt securities was $3.14 billion as of September 30, 2025, with gross unrealized losses of $147.7 million[39]. - The amortized cost of held to maturity debt securities as of September 30, 2025, was $292.1 million, with a fair value of $284.6 million[45]. - The company holds equity securities valued at $19.7 million as of September 30, 2025, which are considered Level 1 inputs[116]. Operational Metrics - Total interest income for the nine months ended September 30, 2025, was $947.94 million, up from $734.19 million in 2024, reflecting a 29.1% increase[167]. - The company reported a total of $584,061,000 in criticized and classified loans across various sectors as of September 30, 2025[79]. - The total amount of brokered deposits increased to $805.9 million as of September 30, 2025, from $255.0 million as of December 31, 2024[84].