Financial Data and Key Metrics Changes - The company reported net earnings of $83 million or $0.64 per share for the fourth quarter, with an annualized return on average assets of 1.34% and an adjusted return on average tangible common equity of 17.6% [3][10] - Pre-provision net revenue reached a record $111 million, representing an ROA of 1.78%, and revenue increased to a record $226 million, driven by record net interest income of $197 million and non-interest income of $28.3 million [3][10][14] - Average earning assets increased by $307 million or an annualized 5.4%, while the average yield on assets decreased by 10 basis points to 5.66% [11] Business Line Data and Key Metrics Changes - The commercial loan team generated total new loan production of $3.2 billion in 2025, with net commercial loan growth of 5.5% for the year [4] - Non-interest income increased to $28.3 million, with significant contributions from the insurance agency and SBA loan sales [7][8][14] - The average cost of total deposits decreased by four basis points to 2.1%, while total deposits increased by $182 million for the quarter, or an annualized 3.8% [13] Market Data and Key Metrics Changes - The company experienced favorable trends in both commercial and consumer segments, contributing to a 2% annualized growth in average non-interest-bearing deposits [5] - Non-performing assets improved to 0.32%, with a decline of $22 million or 22% [13] - The company maintains a strong position in the CRE market, with a healthy outlook despite some concerns regarding rent-controlled properties in New York [41][42] Company Strategy and Development Direction - The company plans to continue investing in revenue-producing talent across various platforms, including middle market banking, treasury management, and wealth management [8][72] - A core system conversion is scheduled for Labor Day weekend of 2026, aimed at enhancing scalability and digital capabilities [9][84] - The company is focused on organic growth as its primary strategy, with potential for future dividend considerations and stock buybacks [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth momentum and improving profitability, with expectations for loans and deposits to grow in the 4%-6% range in 2026 [17] - The competitive landscape for deposits remains challenging, but the company believes it can maintain its market share through effective strategies [35] - Management noted that the CRE market is showing signs of health, with a positive outlook for 2026 [40][41] Other Important Information - The company announced a new share repurchase authorization allowing for the buyback of an additional 2 million shares [8] - The effective tax rate is projected to be approximately 29% for 2026, influenced by tax credit investments [17][22] Q&A Session Summary Question: Inquiry about the effective tax rate and tax credit investments - Management clarified that the $54 million tax credit investments will reduce the effective tax rate in 2026, with benefits spread throughout the year [22][23] Question: Priorities for deploying excess capital - Management indicated that organic growth remains the primary focus, with potential for dividend adjustments and stock buybacks as secondary options [24][25][26] Question: Competition in deposit markets - Management acknowledged heightened competition but emphasized their ability to grow deposits effectively [35] Question: Trends in the CRE market - Management noted a healthier CRE market and expressed no interest in acquiring portfolios from competitors, focusing instead on organic growth [40] Question: Potential for loan yield increases - Management indicated that there is potential for slight improvements in loan yields due to repricing [45] Question: Plans for geographic expansion - Management confirmed interest in expanding into adjacent markets, including Long Island and the Philly suburbs [50] Question: Core systems conversion details - Management provided details on the timeline and expected benefits of the core systems conversion scheduled for 2026 [84]

Provident Financial Services (PFS) Q4 2024 Earnings Call January 29, 2025 10:00 AM ET Company Participants Adriano Duarte - Executive VP, Chief Accounting Officer & Investor Relations OfficerAnthony Labozzetta - President & CEOThomas M. Lyons - Senior EVP & CFOMark Fitzgibbon - Head of FSG ResearchTim Switzer - Vice PresidentFeddie Strickland - Director Conference Call Participants Billy Young - AnalystManuel Navas - MD & Senior Research Analyst Operator Good morning, and welcome everyone to the Provident F ...