Provident Financial Services, Inc. Reports Third Quarter Earnings

Core Insights - Provident Financial Services, Inc. reported a net income of $71.7 million for Q3 2025, maintaining the same earnings per share as the previous quarter, while showing significant growth compared to $46.4 million in Q3 2024 [1][14] - For the nine months ended September 30, 2025, net income totaled $207.7 million, a substantial increase from $67.0 million in the same period of 2024 [22] - The company achieved record revenues of $221.8 million for Q3 2025, driven by record net interest income and non-interest income [6][10] Financial Performance - Net interest income increased by $7.2 million to $194.3 million for Q3 2025, attributed to new loan originations and securities at current market rates [7][15] - The net interest margin rose to 3.43% for Q3 2025, up from 3.36% in the previous quarter [8][16] - Total deposits increased by $387.7 million, or 8.22% annualized, reaching $19.10 billion as of September 30, 2025 [6][41] Asset Quality - Non-performing loans decreased to $100.4 million, or 0.52% of total loans, as of September 30, 2025, down from $107.2 million in the previous quarter [29][30] - The allowance for credit losses related to the loan portfolio was 0.97% of total loans as of September 30, 2025, a slight decrease from 0.98% in the previous quarter [31] 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, with fee income rising primarily due to loan prepayment fees [10][18] - Non-interest expense decreased to $113.1 million for Q3 2025, down from $114.6 million in the previous quarter, driven by reductions in various operating expenses [11][19] Tax and Equity - The income tax expense for Q3 2025 was $29.9 million, with an effective tax rate of 29.4%, compared to $30.5 million and 29.7% in the previous quarter [13][21] - Stockholders' equity increased by $165.8 million during the nine months ended September 30, 2025, reaching $2.77 billion [44]