Provident Financial Services, Inc. Announces Fourth Quarter and Full Year Earnings, Declaration of Quarterly Cash Dividend and Annual Meeting Date

Core Viewpoint - Provident Financial Services, Inc. reported solid financial performance for the year ended December 31, 2024, despite a decrease in net income compared to the previous year, largely influenced by the merger with Lakeland Bancorp, Inc. and associated costs [1][2][3] Financial Performance - For Q4 2024, net income was $48.5 million, or$0.37 per share, up from $46.4 million, or$0.36 per share in Q3 2024, and significantly higher than $27.3 million, or$0.36 per share in Q4 2023 [1][8][16] - For the year ended December 31, 2024, net income totaled $115.5 million, or$1.05 per share, compared to $128.4 million, or$1.71 per share in 2023 [25][30] Merger Impact - The merger with Lakeland added $10.91 billion to total assets,$7.91 billion to loans, and $8.62 billion to deposits, significantly impacting the financial results [2][3] - Transaction costs related to the merger were$20.2 million for Q4 2024 and $56.9 million for the year, compared to$2.5 million and $7.8 million for the respective periods in 2023 [2][16] Net Interest Income and Margin - Net interest income for Q4 2024 decreased by$2.0 million to $181.7 million, primarily due to reduced net accretion from purchase accounting adjustments related to the Lakeland merger [9][10] - The net interest margin decreased three basis points to 3.28$7.8 million for Q4 2024, down from $9.6 million in Q3 2024, attributed to the reclassification of$151.3 million to the held for sale portfolio [11][19] - For the year, the provision for credit losses increased to $83.6 million from$28.2 million in 2023, largely due to the initial CECL provision from the Lakeland merger [28] Non-Interest Income and Expenses - Non-interest income for Q4 2024 totaled $24.2 million, a decrease of$2.7 million from the previous quarter, with notable declines in BOLI income and insurance agency income [12][20] - Non-interest expenses increased to $134.3 million in Q4 2024, up from$75.9 million in Q4 2023, primarily due to increased compensation and benefits expenses from the Lakeland acquisition [13][21] Asset Quality - Non-performing loans decreased to $72.1 million, or 0.39$81.5 million, or 0.34% of total assets [34][37] Balance Sheet Summary - Total assets increased to $24.05 billion as of December 31, 2024, a$13.78 billion increase from the previous year, primarily due to the Lakeland merger [38] - Total deposits rose to $18.62 billion, with significant increases in savings and demand deposit accounts [42] Stockholder Information - The Board of Directors declared a quarterly cash dividend of$0.24 per common share, payable on February 28, 2025 [5] - The Annual Meeting of Stockholders is scheduled for April 24, 2025 [6]