Provident Financial Services, Inc. Reports Second Quarter Earnings

Core Viewpoint - Provident Financial Services, Inc. reported strong financial performance for the second quarter of 2025, with significant increases in net income and record revenues driven by growth in earning assets and improved operational efficiency [1][2]. Financial Performance - For the three months ended June 30, 2025, net income was $72.0 million, or $0.55 per share, compared to $64.0 million, or $0.49 per share for the previous quarter, and a net loss of $11.5 million, or $(0.11) per share for the same quarter in 2024 [1][3][13]. - For the six months ended June 30, 2025, net income totaled $136.0 million, or $1.04 per share, compared to $20.6 million, or $0.23 per share for the same period in 2024 [22]. Revenue and Income - The company achieved record revenue of $214.2 million for the quarter, with net interest income of $187.1 million and non-interest income of $27.1 million [6][9]. - Net interest income increased by $5.4 million from the previous quarter, primarily due to new loan originations at current market rates [4][14]. Interest Margin - The net interest margin increased to 3.36% for the quarter ended June 30, 2025, up from 3.34% in the previous quarter and 3.21% in the same quarter last year [5][15]. - The weighted average yield on interest-earning assets rose to 5.68%, while the cost of interest-bearing liabilities increased to 2.94% [5][25]. Asset Quality - The company recorded a $2.7 million benefit to the provision for credit losses on loans for the quarter, compared to a provision of $66.1 million for the same quarter in 2024 [8][17]. - Non-performing loans as of June 30, 2025, were $107.2 million, or 0.56% of total loans, compared to $72.1 million, or 0.37% of total loans as of June 30, 2024 [30][32]. Non-Interest Income and Expenses - Non-interest income totaled $27.1 million for the quarter, an increase of $4.8 million compared to the same period in 2024, driven by higher fee income and net gains on securities transactions [18][27]. - Non-interest expense decreased to $114.6 million for the quarter, down from $116.3 million in the previous quarter, primarily due to lower merger-related expenses [10][19]. Tax Expense - The income tax expense for the quarter was $30.5 million, with an effective tax rate of 29.7%, compared to $27.8 million and 30.3% in the previous quarter [12][21]. Balance Sheet Highlights - Total assets as of June 30, 2025, were $24.55 billion, an increase of $495.5 million from December 31, 2024, primarily due to an increase in loans held for investment [37]. - The company's loans held for investment portfolio totaled $19.10 billion as of June 30, 2025, reflecting growth in commercial loans and mortgage warehouse lines [38][39].