Provident Financial Services(US:PFS)2021-08-09 19:08Financial Performance - Net income for the three months ended June 30, 2021, was $44,789 thousand, significantly up from $14,311 thousand in the same period last year, marking a year-over-year increase of 213.5%[11]. - Basic earnings per share increased to $0.58 for the three months ended June 30, 2021, compared to $0.22 for the same period in 2020, representing a growth of 163.6%[11]. - Net income for the six months ended June 30, 2021, was $93,348 thousand, compared to $29,242 thousand for the same period in 2020, representing an increase of 219%[23]. - Basic earnings per share for the six months ended June 30, 2021, was $1.22, compared to $0.45 in the same period of 2020, marking a 171.1% increase[32]. - Total comprehensive income for the three months ended June 30, 2021, was $45,894 thousand, compared to $12,167 thousand for the same period in 2020, indicating a significant increase of 276.5%[14]. Asset and Loan Management - Total assets increased to $13,216,955 thousand as of June 30, 2021, up from $12,919,741 thousand at December 31, 2020, representing a growth of 2.3%[9]. - Net loans decreased to $9,458,903 thousand from $9,721,424 thousand, a decline of 2.7%[9]. - Total gross loans decreased to $9,554,972,000 at June 30, 2021, from $9,839,858,000 at December 31, 2020[75]. - The total mortgage loans increased to $6,852,288,000 at June 30, 2021, compared to $6,779,822,000 at December 31, 2020[75]. - The company reported a net decrease in loans of $287,111 thousand for the six months ended June 30, 2021, compared to a decrease of $432,788 thousand in 2020[23]. Deposits and Equity - Total deposits rose to $10,589,984 thousand, an increase of 7.6% from $9,837,829 thousand[9]. - The net increase in deposits for the six months ended June 30, 2021, was $752,155 thousand, compared to $557,457 thousand in 2020, showing an increase of 35%[23]. - Total stockholders' equity as of June 30, 2021, was $1,677,634 thousand, up from $1,619,797 thousand at the end of 2020, marking a growth of 3.6%[21]. - Cash dividends paid to stockholders increased to $36,203 thousand in the first half of 2021 from $30,695 thousand in 2020, reflecting a growth of 18%[24]. Credit Losses and Provisions - The allowance for credit losses decreased to $80,959 thousand as of June 30, 2021, down from $101,466 thousand at December 31, 2020, a reduction of 20.2%[9]. - The allowance for credit losses on loans decreased by $10.7 million for the three months ended June 30, 2021, and by $25.7 million for the six months ended June 30, 2021, due to an improved economic forecast[83]. - The total allowance for credit losses on loans at the end of June 30, 2021, was $80.959 million, down from $86.259 million at the end of June 30, 2020[83]. - The company recorded a provision for credit losses for off-balance sheet credit exposures of $2,100 thousand for the three months ended June 30, 2021, a decrease from $5,300 thousand in the same period of 2020[108]. Investment and Securities - As of June 30, 2021, the company held $1.56 billion in available for sale debt securities and $437.7 million in held to maturity debt securities[57]. - The fair value of available for sale debt securities at June 30, 2021, was $1.56 billion, with gross unrealized losses of $4.58 million[61]. - The amortized cost of held to maturity debt securities was $437.8 million with a fair value of $454.2 million as of June 30, 2021[66][70]. - The total fair value of available for sale debt securities was $1,556.6 million, with $99.97 million classified as Level 1 and $1,456.6 million as Level 2[126]. COVID-19 Impact - Loans granted COVID-19 related deferrals peaked at $1.31 billion, or 16.8% of loans, and decreased to $7.3 million as of July 16, 2021, showing a significant reduction of 99.4%[94]. - The Company secured 2,066 Paycheck Protection Program (PPP) loans totaling $681.9 million, with 1,082 loans amounting to $372.5 million forgiven as of June 30, 2021[95]. - Loans granted payment deferrals related to COVID-19 totaled $7,300 thousand as of June 30, 2021, reflecting the impact of the pandemic on the loan portfolio[99]. Acquisitions - The acquisition of SB One Bancorp on July 31, 2020, added $2.20 billion to total assets and $1.77 billion to total loans[35]. - The total consideration paid for the acquisition of SB One was $180.8 million, with 12.8 million shares of common stock issued[36].