ISELIN, N.J., July 24, 2025 (GLOBE NEWSWIRE) -- Provident Financial Services, Inc. (NYSE:PFS) (the "Company") reported net income of $72.0 million, or $0.55 per basic and diluted share for the three months ended June 30, 2025, compared to $64.0 million, or $0.49 per basic and diluted share, for the three months ended March 31, 2025 and a net loss of $11.5 million, or $(0.11) per basic and diluted share, for the three months ended June 30, 2024. For the six months ended June 30, 2025, net income totaled $136.0 million, or $1.04 per basic and diluted share, compared to $20.6 million, or $0.23 per basic and diluted share, for the six months ended June 30, 2024. While there were no transaction costs related to our merger with Lakeland Bancorp, Inc. ("Lakeland") for the 2025 period, these costs totaled $79.0 million and $81.2 million, including an initial Current Expected Credit Loss ("CECL") provision for credit losses recorded as part of the Lakeland merger, for the three and six months ended June 30, 2024, respectively.

Anthony J. Labozzetta, President and Chief Executive Officer commented, "Provident's performance this quarter was impressive and I am very proud of the team's continued hard work and dedication to excellence. We achieved record revenues by growing earning assets and expanding margins, while improving operational efficiency and maintaining strong asset quality. We look forward to sustaining our positive momentum and continuing to grow our business."

Performance Highlights for the Second Quarter of 2025

Adjusted for a one-time write-down on a foreclosed property in the prior quarter, the Company's annualized adjusted returns on average assets, average equity and average tangible equity⁽¹⁾ were 1.19%, 10.76% and 16.79% for the quarter ended June 30, 2025, compared to 1.11%, 10.13% and 16.15% for the quarter ended March 31, 2025. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 12 of the earnings release.
The Company's annualized adjusted pre-tax, pre-provision returns on average assets, average equity and average tangible equity⁽²⁾ were 1.64%, 14.88% and 21.26% for the quarter ended June 30, 2025, compared to 1.61%, 14.63% and 21.18% for the quarter ended March 31, 2025. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 12 of the earnings release.
The Company reported record revenue of $214.2 million for the quarter ended June 30, 2025, comprised of record net interest income of $187.1 million and non-interest income of $27.1 million.
Average interest-earning assets increased $383.8 million, or an annualized 7.0%, for the quarter ended June 30, 2025, versus the trailing quarter.
The Company's commercial and industrial ("C&I") loan portfolio, excluding mortgage warehouse lines, increased $182.7 million, or 16.26% annualized, to $4.69 billion as of June 30, 2025, from $4.51 billion as of March 31, 2025. Additionally, the Company's total commercial loan portfolio, including mortgage warehouse lines, commercial mortgage, multi-family and construction loans, increased $319.3 million, or 7.98% annualized, to $16.51 billion as of June 30, 2025, from $16.19 billion as of March 31, 2025.
As of June 30, 2025, the Company's loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $2.59 billion, with a weighted average interest rate of 6.30%, compared to $2.77 billion, with a weighted average interest rate of 6.31%, as of March 31, 2025.
The net interest margin increased two basis points to 3.36% for the quarter ended June 30, 2025, from 3.34% for the trailing quarter, while the core net interest margin, which excludes the impact of purchase accounting accretion and amortization, decreased one basis point from the trailing quarter to 2.93%. The weighted average yield on interest-earning assets for the quarter ended June 30, 2025 increased five basis points to 5.68%, compared to the trailing quarter, while the weighted average cost of interest-bearing liabilities for the quarter ended June 30, 2025 increased four basis points to 2.94%, compared to the trailing quarter.
The Company recorded a $2.7 million benefit to the provision for credit losses on loans for the quarter ended June 30, 2025, compared to a $325,000 provision for the trailing quarter. Non-performing assets to total assets improved to 0.44% as of June 30, 2025, and annualized net charge-offs were 0.03% of loans for the quarter. The allowance for credit losses as a percentage of loans decreased to 0.98% as of June 30, 2025, from 1.02% as of March 31, 2025.
Tangible book value per share ⁽³⁾ increased 3.2% to $14.60 and our tangible common equity ratio increased 13 basis points to 8.03% as of June 30, 2025. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 13 of the earnings release.

Results of Operations

Three months ended June 30, 2025 compared to the three months ended March 31, 2025

For the three months ended June 30, 2025, the Company reported net income of $72.0 million, or $0.55 per basic and diluted share, compared to net income of $64.0 million, or $0.49 per basic and diluted share, for the three months ended March 31, 2025.

Net Interest Income and Net Interest Margin

Net interest income increased $5.4 million to $187.1 million for the three months ended June 30, 2025, from $181.7 million for the trailing quarter. The increase in net interest income was primarily due to originations of new loans at current market rates and the favorable repricing of adjustable rate loans, partially offset by a decrease in average lower-costing deposits and an increase in average borrowings.

The Company's net interest margin increased two basis points to 3.36% for the quarter ended June 30, 2025, from 3.34% for the trailing quarter. The weighted average yield on interest-earning assets for the quarter ended June 30, 2025 increased five basis points to 5.68%, compared to the trailing quarter. The weighted average cost of interest-bearing liabilities for the quarter ended June 30, 2025 increased four basis points from the trailing quarter, to 2.94%. The average cost of interest-bearing deposits for the quarter ended June 30, 2025 decreased two basis points to 2.62%, compared to 2.64% for the trailing quarter. The average cost of total deposits, including non-interest-bearing deposits, was 2.10% for the quarter ended June 30, 2025, compared to 2.11% for the trailing quarter. The average cost of borrowed funds for the quarter ended June 30, 2025 was 3.94%, compared to 3.76% for the quarter ended March 31, 2025.

Provision for Credit Losses on Loans

For the quarter ended June 30, 2025, the Company recorded a $2.7 million benefit to the provision for credit losses on loans, compared with a provision for credit losses on loans of $325,000 for the quarter ended March 31, 2025. The benefit to the provision for credit losses on loans in the quarter was primarily attributable to an improved economic forecast and an overall improvement in the Company's asset quality, partially offset by an increase in specific reserves required on individually analyzed loans. For the three months ended June 30, 2025, net charge-offs totaled $1.2 million, or an annualized three basis points of average loans, compared with net charge-offs of $2.0 million, or an annualized four basis points of average loans for the trailing quarter.

Non-Interest Income and Expense

For the three months ended June 30, 2025, non-interest income totaled $27.1 million, an increase of $45,000, compared to the trailing quarter. Fee income increased $1.1 million to $10.7 million for the three months ended June 30, 2025, compared to the trailing quarter, primarily due to increases in deposit related and loan prepayment fee income, combined with an increase in non-deposit investment fee income. BOLI income increased $493,000 for the three months ended June 30, 2025, compared to the trailing quarter, primarily due to greater equity valuations and an increase in benefit claims recognized. Partially offsetting these increases in non-interest income, insurance agency income decreased $709,000 to $4.9 million for the three months ended June 30, 2025, compared to the trailing quarter, mainly due to the receipt of contingent commissions in the prior quarter, partially offset by additional business activity in the current quarter. Wealth management income decreased $380,000 to $6.9 million for the three months ended June 30, 2025, compared to the trailing quarter, mainly due to a decrease in the average market value of assets under management during the period. Additionally, other income decreased $353,000 to $1.9 million for the three months ended June 30, 2025, compared to the trailing quarter, primarily due to a decrease in profit on fixed asset sales.

Non-interest expense totaled $114.6 million for the three months ended June 30, 2025, a decrease of $1.7 million, compared to $116.3 million for the trailing quarter. Other operating expenses decreased $1.9 million to $14.5 million for the three months ended June 30, 2025, compared to $16.4 million for the trailing quarter, primarily due to a prior quarter $2.7 million write-down on a foreclosed property, while net occupancy expense decreased $916,000 to $13.0 million for the three months ended June 30, 2025, compared to $13.9 million for the trailing quarter, primarily due to decreases in snow removal, utilities and other maintenance costs. Partially offsetting these decreases in non-interest expense, compensation and benefits expense increased $883,000 to $63.2 million for the three months ended June 30, 2025, compared to $62.4 million for the trailing quarter. The increase in compensation and benefits expense was primarily attributable to an increase in salary expense, primarily due to additional business days in the current quarter compared to the trailing quarter.

The Company's annualized adjusted non-interest expense as a percentage of average assets⁽⁵⁾ totaled 1.89% for the quarter ended June 30, 2025, compared to 1.92% for the trailing quarter. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)⁽⁶⁾improved to 53.52% for the three months ended June 30, 2025, compared to 54.43% for the trailing quarter.

Income Tax Expense

For the three months ended June 30, 2025, the Company's income tax expense was $30.5 million with an effective tax rate of 29.7%, compared to income tax expense of $27.8 million with an effective tax rate of 30.3%, for the trailing quarter. The increase in tax expense for the three months ended June 30, 2025 compared with the trailing quarter was largely due to an increase in taxable income in the current quarter, while the decrease in tax rate was primarily due to a discrete item related to stock-based compensation in the prior quarter.

Three months ended June 30, 2025 compared to the three months ended June 30, 2024

For the three months ended June 30, 2025, the Company reported net income of $72.0 million, or $0.55 per basic and diluted share, compared to a net loss of $11.5 million, or $(0.11) per basic and diluted share, for the three months ended June 30, 2024. While there were no transaction costs related to our merger with Lakeland for the 2025 period, these costs totaled $79.0 million, including an initial CECL provision for credit losses recorded as part of the Lakeland merger, for the three months ended June 30, 2024.

Net Interest Income and Net Interest Margin

Net interest income increased $45.6 million to $187.1 million for the three months ended June 30, 2025, from $141.5 million for same period in 2024. The increase in net interest income was largely driven by growth in average earning assets and net assets added in the May 16, 2024 acquisition of Lakeland and related accretion of purchase accounting adjustments.

The Company's net interest margin increased 15 basis points to 3.36% for the quarter ended June 30, 2025, from 3.21% for the same period last year. The weighted average yield on interest-earning assets for the quarter ended June 30, 2025 increased one basis point to 5.68%, compared to 5.67% for the quarter ended June 30, 2024. The weighted average cost of interest-bearing liabilities decreased 15 basis points for the quarter ended June 30, 2025 to 2.94%, compared to 3.09% for the second quarter of 2024. The average cost of interest-bearing deposits for the quarter ended June 30, 2025 was 2.62%, compared to 2.84% for the same period last year. Average non-interest-bearing demand deposits increased $833.2 million to $3.70 billion for the quarter ended June 30, 2025, compared to $2.87 billion for the quarter ended June 30, 2024. The average cost of total deposits, including non-interest-bearing deposits, was 2.10% for the quarter ended June 30, 2025, compared with 2.24% for the quarter ended June 30, 2024. The average cost of borrowed funds for the quarter ended June 30, 2025 was 3.94%, compared to 3.83% for the same period last year.

Provision for Credit Losses on Loans

For the quarter ended June 30, 2025, the Company recorded a $2.7 million benefit to the provision for credit losses on loans, compared with a $66.1 million provision for credit losses on loans for the quarter ended June 30, 2024. The benefit to the provision for credit losses on loans in the quarter was primarily attributable to an improved economic forecast and an overall improvement in the Company's asset quality, partially offset by an increase in specific reserves required on individually analyzed loans. The provision for credit losses on loans for the prior year quarter was primarily attributable to an initial CECL provision for credit losses of $60.1 million, recorded as part of the Lakeland merger. For the three months ended June 30, 2025, net charge-offs totaled $1.2 million, or an annualized three basis points of average loans, compared with net charge-offs of $2.7 million, or an annualized seven basis points of average loans, for the same period last year.

Non-Interest Income and Expense

Non-interest income totaled $27.1 million for the quarter ended June 30, 2025, an increase of $4.8 million, compared to the same period in 2024. Net gain on securities transactions increased $3.0 million for the three months ended June 30, 2025, compared to the same period in 2024, primarily due to a prior year $2.8 million loss on the sale of subordinated debt issued by Lakeland from the Provident investment portfolio prior to the merger. Fee income increased $2.0 million to $10.7 million for the three months ended June 30, 2025, compared to the prior year quarter, primarily due to increases in deposit fee income, debit card related fee income and loan related fee income, resulting from the Lakeland merger. Additionally, other income increased $895,000 to $1.9 million for the three months ended June 30, 2025, compared to the quarter ended June 30, 2024, primarily due to increases in gains on the sale of SBA loans, while insurance agency income increased $454,000 to $4.9 million for the three months ended June 30, 2025, compared to the quarter ended June 30, 2024, largely due to an increase in business activity. Partially offsetting these increases to non-interest income, wealth management fees decreased $821,000 to $6.9 million for the three months ended June 30, 2025, compared to the quarter ended June 30, 2024, mainly due to a decrease in the average market value of assets under management during the period, while BOLI income decreased $738,000 to $2.6 million for the three months ended June 30, 2025, compared to the prior year quarter, primarily due to a decrease in benefit claims recognized.

For the three months ended June 30, 2025, non-interest expense totaled $114.6 million, a decrease of $780,000, compared to the three months ended June 30, 2024. Merger-related expenses decreased $18.9 million for the three months ended June 30, 2025, compared to the same period in 2024. Partially offsetting the decrease in merger-related expenses, compensation and benefits expense increased $8.4 million to $63.2 million for the three months ended June 30, 2025, compared to $54.9 million for the same period in 2024, primarily attributable to the addition of Lakeland personnel. Other operating expenses increased $3.2 million to $14.5 million for the three months ended June 30, 2025, compared to $11.3 million for the same period in 2024, primarily due to the addition of Lakeland. Amortization of intangibles increased $3.0 million to $9.5 million for the three months ended June 30, 2025, compared to $6.5 million for the same period in 2024, largely due to core deposit intangible amortization related to Lakeland. Net occupancy expense increased $1.9 million to $13.0 million for three months ended June 30, 2025, compared to $11.1 million for the same period in 2024, primarily due to an increase in depreciation and maintenance expenses due to the addition of Lakeland. Data processing expenses increased $1.2 million to $9.6 million for three months ended June 30, 2025, compared to $8.4 million for the same period in 2024, primarily due to the addition of Lakeland.

The Company's annualized adjusted non-interest expense as a percentage of average assets⁽⁵⁾ was 1.89% for the quarter ended June 30, 2025, compared to 2.02% for the same period in 2024. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)⁽⁶⁾ was 53.52% for the three months ended June 30, 2025 compared to 57.86% for the same respective period in 2024.

Income Tax Expense

For the three months ended June 30, 2025, the Company's income tax expense was $30.5 million with an effective tax rate of 29.7%, compared with an income tax benefit of $9.8 million for the three months ended June 30, 2024. The increase in tax expense for the three months ended June 30, 2025, compared with the same period last year was largely due to an increase in taxable income in the quarter. The prior year income tax benefit was largely due to a $5.3 million tax benefit related to the revaluation of deferred tax assets to reflect the imposition by the state of New Jersey of a 2.5% Corporate Transit Fee in the quarter, effective January 1, 2024, combined with a decrease in taxable income in the prior year quarter as a result of additional expenses from the Lakeland merger.

Six months ended June 30, 2025 compared to the six months ended June 30, 2024

For the six months ended June 30, 2025, net income totaled $136.0 million, or $1.04 per basic and diluted share, compared to net income of $20.6 million, or $0.23 per basic and diluted share, for the six months ended June 30, 2024. While there were no transaction costs related to our merger with Lakeland for the 2025 period, those costs totaled $81.2 million, including an initial CECL provision for credit losses recorded as part of the Lakeland merger, for the six months ended June 30, 2024.

Net Interest Income and Net Interest Margin

Net interest income increased $133.6 million to $368.8 million for the six months ended June 30, 2025, from $235.2 million for same period in 2024. Net interest income for the six months ended June 30, 2025 was largely driven by growth in average earning assets and net assets added in the May 16, 2024 acquisition of Lakeland and related accretion of purchase accounting adjustments.

For the six months ended June 30, 2025, the net interest margin increased 27 basis points to 3.35%, compared to 3.08% for the six months ended June 30, 2024. The weighted average yield on interest earning assets increased 22 basis points to 5.65% for the six months ended June 30, 2025, compared to 5.43% for the six months ended June 30, 2024, while the weighted average cost of interest-bearing liabilities decreased five basis points to 2.92% for the six months ended June 30, 2025, compared to 2.97% for the same period last year. The average cost of interest-bearing deposits decreased 11 basis points to 2.63% for the six months ended June 30, 2025, compared to 2.74% for the same period last year. Average non-interest-bearing demand deposits increased $1.24 billion to $3.71 billion for the six months ended June 30, 2025, compared with $2.47 billion for the six months ended June 30, 2024. The average cost of total deposits, including non-interest-bearing deposits, was 2.10% for the six months ended June 30, 2025, compared with 2.19% for the six months ended June 30, 2024. The average cost of borrowings for the six months ended June 30, 2025 was 3.86%, compared to 3.75% for the same period last year.

Provision for Credit Losses on Loans

For the six months ended June 30, 2025, the Company recorded a $2.3 million benefit to the provision for credit losses on loans, compared with a provision for credit losses on loans of $66.3 million for the six months ended June 30, 2024. The benefit to the provision for credit losses on loans for the six months ended June 30, 2025 was primarily attributable to an improved economic forecast and an overall improvement in the Company's asset quality, partially offset by an increase in specific reserves required on individually analyzed loans. The provision for credit losses on loans for the prior year period was primarily attributable to an initial CECL provision for credit losses of $60.1 million, recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. For the six months ended June 30, 2025, net charge-offs totaled $3.2 million or an annualized three basis points of average loans, compared with net charge-offs of $4.6 million, or an annualized four basis points of average loans, for the six months ended June 30, 2024.

Non-Interest Income and Expense

For the six months ended June 30, 2025, non-interest income totaled $54.1 million, an increase of $11.0 million compared to the same period in 2024. Fee income increased $5.8 million to $20.4 million for the six months ended June 30, 2025, compared to the same period in 2024, primarily due to increases in deposit fee income, debit and credit card related fee income and loan related fee income resulting from the Lakeland merger. Net gains on securities transactions increased $3.1 million for the six months ended June 30, 2025, primarily due to a prior year $2.8 million loss on the sale of subordinated debt issued by Lakeland from the Provident investment portfolio prior to the merger. Other income increased $2.3 million to $4.1 million for the six months ended June 30, 2025, compared to $1.8 million for the same period in 2024, primarily due to an increase in gains on sales of SBA and mortgage loans. Additionally, insurance agency income increased $1.3 million to $10.6 million for the six months ended June 30, 2025, compared to $9.3 million for the same period in 2024, largely due to increases in contingent commissions, retention revenue and new business activity. Partially offsetting these increases in non-interest income, wealth management income decreased $982,000 to $14.3 million for the six months ended June 30, 2025, compared to the same period in 2024, mainly due to a decrease in the average market value of assets under management during the period, while BOLI income decreased $462,000 to $4.7 million for the six months ended June 30, 2025, compared to the same period in 2024, primarily due to a decrease in benefit claims recognized, combined with lower equity valuations.

Non-interest expense totaled $230.9 million for the six months ended June 30, 2025, an increase of $43.7 million, compared to $187.2 million for the six months ended June 30, 2024. Compensation and benefits expense increased $30.7 million to $125.6 million for the six months ended June 30, 2025, compared to $94.9 million for the six months ended June 30, 2024, primarily attributable to the addition of Lakeland personnel. Amortization of intangibles increased $11.8 million to $19.0 million for the six months ended June 30, 2025, compared to $7.2 million for the six months ended June 30, 2024, largely due to core deposit intangible amortization related to Lakeland. Other operating expenses increased $9.3 million to $30.9 million for the three months ended June 30, 2025, compared to $21.6 million for the same period in 2024, primarily due to a $2.7 million write-down on a foreclosed property, combined with the addition of Lakeland. Net occupancy expense increased $7.3 million to $26.9 million for the six months ended June 30, 2025, compared to the same period in 2024, primarily due to increases in depreciation and maintenance expense related to the addition of Lakeland. Data processing expense increased $4.0 million to $19.2 million for the six months ended June 30, 2025, compared to $15.2 million for the six months ended June 30, 2024, primarily due to the addition of Lakeland, while FDIC insurance increased $1.4 million to $6.7 million for the six months ended June 30, 2025, primarily due to the addition of Lakeland. Partially offsetting these increases to non-interest expense, merger-related expenses decreased $21.1 million for the six months ended June 30, 2025.

Income Tax Expense

For the six months ended June 30, 2025, the Company's income tax expense was $58.3 million with an effective tax rate of 30.0%, compared with income tax expense of $1.1 million for the six months ended June 30, 2024. The increase in tax expense for the six months ended June 30, 2025 compared with the same period last year was largely due to an increase in taxable income, combined with a prior year $5.3 million tax benefit related to the revaluation of deferred tax assets to reflect the imposition by the State of New Jersey of a 2.5% Corporate Transit Fee, effective January 1, 2024. The prior year income tax expense was favorably impacted by the Lakeland merger.

Asset Quality

The Company's total non-performing loans as of June 30, 2025 were $107.2 million, or 0.56% of total loans held for investment, compared to $103.2 million, or 0.54% of total loans as of March 31, 2025 and $72.1 million, or 0.37% of total loans as of December 31, 2024. The $3.9 million increase in non-performing loans as of June 30, 2025, compared to the trailing quarter, consisted of a $3.1 million increase in non-performing commercial loans, a $2.0 million increase in non-performing residential mortgage loans and a $195,000 increase in non-performing consumer loans, partially offset by a $1.2 million decrease in non-performing multi-family loans, a $103,000 decrease in non-performing commercial mortgage loans and a $28,000 decrease in non-performing construction loans. As of June 30, 2025, impaired loans totaled $92.7 million with related specific reserves of $11.4 million, compared with impaired loans totaling $86.1 million with related specific reserves of $7.9 million as of March 31, 2025. As of December 31, 2024, impaired loans totaled $55.4 million with related specific reserves of $7.5 million.

As of June 30, 2025, the Company's allowance for credit losses related to the loan portfolio was 0.98% of total loans, compared to 1.02% and 1.04% as of March 31, 2025 and December 31, 2024, respectively. The allowance for credit losses decreased $5.6 million to $187.9 million as of June 30, 2025, from $193.4 million as of December 31, 2024. The decrease in the allowance for credit losses on loans as of June 30, 2025 compared to December 31, 2024 was due to a $2.3 million benefit to the provision for credit losses on loans, combined with net charge-offs of $3.2 million.

The following table sets forth accruing past due loans and non-accrual loans held for investment on the dates indicated, as well as delinquency statistics and certain asset quality ratios.


	June 30, 2025				March 31, 2025				December 31, 2024
	Number of Loans	Principal Balance of Loans			Number of Loans	Principal Balance of Loans			Number of Loans	Principal Balance of Loans
	(Dollars in thousands)
Accruing past due loans:
30 to 59 days past due:
Commercial mortgage loans	1	$	129		8	$	13,696		7	$	8,538
Multi-family mortgage loans	—		—		1		7,433		—		—
Construction loans	—		—		—		—		—		—
Residential mortgage loans	20		5,541		27		6,905		22		6,388
Total mortgage loans	21		5,670		36		28,034		29		14,926
Commercial loans	4		997		23		11,372		9		3,026
Consumer loans	30		1,592		22		1,604		47		3,152
Total 30 to 59 days past due	55	$	8,259		95	$	42,060		85	$	21,104

60 to 89 days past due:
Commercial mortgage loans	1	$	347		2	$	196		4	$	3,954
Multi-family mortgage loans	1		431		—		—		—		—
Construction loans	—		—		—		—		—		—
Residential mortgage loans	16		3,816		18		5,009		17		5,049
Total mortgage loans	18		4,594		20		5,205		21		9,003
Commercial loans	13		4,389		8		1,955		3		1,117
Consumer loans	9		699		12		854		15		856
Total 60 to 89 days past due	40		9,682		47		8,908		39		10,976
Total accruing past due loans	95	$	17,941		142	$	50,968		124	$	32,080

Non-accrual:
Commercial mortgage loans	15	$	42,828		18	$	42,931		17	$	20,883
Multi-family mortgage loans	3		6,143		5		7,294		6		7,498
Construction loans	3		18,901		3		18,929		2		13,246
Residential mortgage loans	25		7,209		22		5,246		23		4,535
Total mortgage loans	46		75,081		48		74,400		48		46,162
Commercial loans	34		30,531		32		23,580		32		21,892
Consumer loans	21		1,547		19		1,352		23		1,656
Total non-accrual loans	101	$	107,159		99	$	99,332		103	$	69,710

Non-performing loans to total loans held for investment			0.56	%			0.53	%			0.37	%
Allowance for loan losses to total non-performing loans			175.32	%			185.78	%			268.43	%
Allowance for loan losses to total loans held for investment			0.98	%			1.02	%			1.04	%

There were no non-accrual or past due loans held for sale as of June 30. 2025. As of March 31, 2025 and December 31, 2024, total non-accrual loans held for sale, which are not in the tables above, totaled $3.9 million and $2.4 million, respectively. Additionally, as of March 31, 2025 and December 31, 2024, total past due loans held for sale, including non-accrual loans held for sale, totaled $5.8 million and $4.8 million, respectively.

As of June 30, 2025 and December 31, 2024, the Company held foreclosed assets of $1.0 million and $9.5 million, respectively. During the six months ended June 30, 2025, there was a write-down of one foreclosed commercial property of $2.7 million based on a contracted sales price. The sale of this property closed in the second quarter of 2025, which reduced foreclosed assets by an additional $5.8 million. Foreclosed assets as of June 30, 2025 were comprised of one commercial property. Total non-performing assets as of June 30, 2025 increased $26.6 million to $108.1 million, or 0.44% of total assets, from $81.5 million, or 0.34% of total assets at December 31, 2024.

Balance Sheet Summary

Total assets as of June 30, 2025 were $24.55 billion, a $495.5 million increase from December 31, 2024. The increase in total assets was primarily due to a $445.5 million increase in loans held for investment and a $246.5 million increase in total investments, partially offset by a $155.5 million decrease in loans held for sale, and decreases in intangibles and other assets.

The Company's loans held for investment portfolio totaled $19.10 billion as of June 30, 2025 and $18.66 billion as of December 31, 2024. The loan portfolio consisted of the following:


	June 30, 2025			March 31, 2025			December 31, 2024
	(Dollars in thousands)
Mortgage loans:
Commercial	$	7,313,904		$	7,295,651		$	7,228,078
Multi-family		3,517,509			3,458,190			3,382,933
Construction		751,914			756,356			823,503
Residential		1,985,355			1,994,404			2,010,637
Total mortgage loans		13,568,682			13,504,601			13,445,151
Commercial loans		4,688,888			4,506,215			4,447,672
Mortgage warehouse lines		240,134			176,687			160,928
Consumer loans		617,190			613,453			613,819
Total gross loans		19,114,894			18,800,956			18,667,570
Premiums on purchased loans		1,308			1,337			1,338
Net deferred fees and unearned discounts		(11,372	)		(10,922	)		(9,538	)
Total loans	$	19,104,830		$	18,791,371		$	18,659,370

During the three months ended June 30, 2025, the loans held for investment portfolio had net increases of $182.7 million of commercial loans, $63.4 million of mortgage warehouse lines, $59.3 million of multi-family loans and $18.3 million of commercial mortgage loans, partially offset by net decreases of $9.0 million of residential mortgage loans, $4.4 million of construction loans and $3.7 million of consumer loans. Total commercial loans, including mortgage warehouse lines, commercial mortgage, multi-family and construction loans, represented 86.4% of the loan portfolio as of June 30, 2025, compared to 85.9% as of December 31, 2024.

For the six months ended June 30, 2025, loan funding, including advances on lines of credit, totaled $4.30 billion, compared with $2.53 billion for the same period in 2024.

As of June 30, 2025, the Company's unfunded loan commitments totaled $3.74 billion, including commitments of $2.30 billion in commercial loans, $511.9 million in construction loans and $212.7 million in commercial mortgage loans. Unfunded loan commitments as of December 31, 2024 and June 30, 2024 were $2.73 billion and $3.01 billion, respectively.

The loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $2.59 billion as of June 30, 2025, compared to $1.79 billion and $1.67 billion as of December 31, 2024 and June 30, 2024, respectively.

Total investment securities were $3.47 billion as of June 30, 2025, a $246.5 million increase from December 31, 2024. This increase was primarily due to purchases of mortgage-backed securities and a decrease in unrealized losses on available for sale debt securities.

Total deposits increased $84.7 million during the six months ended June 30, 2025, to $18.71 billion. Total time deposits increased $99.3 million to $3.27 billion as of June 30, 2025, while total savings and demand deposit accounts decreased $14.6 million to $15.44 billion as of June 30, 2025. The increase in time deposits consisted of a $108.1 million increase in brokered time deposits, partially offset by an $8.8 million decrease in retail time deposits. The decrease in savings and demand deposits was largely attributable to a $50.7 million decrease in savings deposits and a $36.8 million decrease in non-interest bearing demand deposits, partially offset by a $52.2 million increase in money market deposits and a $20.7 million increase in interest bearing demand deposits.

Borrowed funds increased $354.2 million during the six months ended June 30, 2025, to $2.37 billion. Borrowed funds represented 9.7% of total assets as of June 30, 2025, an increase from 8.4% as of December 31, 2024.

Stockholders' equity increased $106.3 million during the six months ended June 30, 2025, to $2.71 billion, primarily due to net income earned for the period and a decrease in unrealized losses on available for sale debt securities, partially offset by cash dividends paid to stockholders. For the three and six months ended June 30, 2025, common stock repurchases totaled 55,826 shares at an average cost of $17.83 per share and 156,570 shares at an average cost of $18.07 per share, respectively, all of which were made in connection with withholding to cover income taxes on the vesting of stock-based compensation. As of June 30, 2025, approximately 816,000 shares remained eligible for repurchase under the current stock repurchase authorization. Book value per share and tangible book value per share(1) as of June 30, 2025 were $20.73 and $14.60, respectively, compared with $19.93 and $13.66, respectively, as of December 31, 2024.

About the Company

Provident Financial Services, Inc. is the holding company for Provident Bank, a community-oriented bank offering "Commitment you can count on" since 1839. Provident Bank provides a comprehensive array of financial products and services through its network of branches throughout New Jersey, Bucks, Lehigh and Northampton counties in Pennsylvania, as well as Orange, Queens and Nassau Counties in New York. The Bank also provides fiduciary and wealth management services through its wholly owned subsidiary, Beacon Trust Company and insurance services through its wholly owned subsidiary, Provident Protection Plus, Inc.

Post Earnings Conference Call

Representatives of the Company will hold a conference call for investors on Thursday, July 24, 2025 at 2:00 p.m. Eastern Time to discuss the Company's financial results for the quarter ended June 30, 2025. The call may be accessed by dialing 1-888-412-4131 (United States Toll Free) and 1-646-960-0134 (United States Local). Speakers will need to enter conference ID code (3610756) before being met by a live operator. Internet access to the call is also available (listen only) at provident.bank by going to Investor Relations and clicking on "Webcast."

A supplemental 2nd Quarter results investor presentation is also available on our investor relations website under "Presentations."

Forward Looking Statements

Certain statements contained herein are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as "may," "will," "believe," "expect," "estimate," "project," "intend," "anticipate," "continue," or similar terms or variations on those terms, or the negative of those terms. Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those set forth in Item 1A of the Company's Annual Report on Form 10-K, as supplemented by its Quarterly Reports on Form 10-Q, and those related to the economic environment, particularly in the market areas in which the Company operates, inflation and unemployment, competitive products and pricing, real estate values, fiscal and monetary policies of the U.S. Government, tariffs, the effects of the recent turmoil in the banking industry, changes in accounting policies and practices that may be adopted by the regulatory agencies and the accounting standards setters, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, potential goodwill impairment, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets, the availability of and costs associated with sources of liquidity, and the impact of a potential shutdown of the federal government.

The Company cautions readers not to place undue reliance on any such forward-looking statements which speak only as of the date they are made. The Company advises readers that the factors listed above could affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not assume any duty, and does not undertake, to update any forward-looking statements to reflect events or circumstances after the date of this statement.

Footnotes

⁽¹⁾ Annualized adjusted pre-tax, pre-provision return on average assets, annualized return on average tangible equity, tangible common equity capital ratio, tangible book value per share, annualized adjusted non-interest expense as a percentage of average assets and the efficiency ratio are non-GAAP financial measures. Please refer to the Notes following the Consolidated Financial Highlights which contain the reconciliation of GAAP to non-GAAP financial measures and the associated calculations.


PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Financial Highlights
(Dollars in Thousands, except share data) (Unaudited)

	At or for the Three Months Ended									At or for the Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
		2025			2025			2024			2025			2024
Statement of Income
Net interest income	$	187,094		$	181,728		$	141,506		$	368,822		$	235,176
Provision (benefit) charge for credit losses		(2,888	)		638			69,705			(2,250	)		69,385
Non-interest income		27,075			27,030			22,275			54,105			43,081
Non-interest expense		114,614			116,267			115,394			230,881			187,221
Income (loss) before income tax expense		102,443			91,853			(21,318	)		194,296			21,651
Net income (loss)		71,981			64,028			(11,485	)		136,009			20,596
Diluted earnings per share	$	0.55		$	0.49		$	(0.11	)	$	1.04		$	0.23
Interest rate spread		2.74	%		2.73	%		2.58	%		2.73	%		2.46	%
Net interest margin		3.36	%		3.34	%		3.21	%		3.35	%		3.08	%

Profitability
Annualized return on average assets		1.19	%		1.08	%		(0.24)	%		1.13	%		0.25	%
Annualized adjusted return on average assets ⁽¹⁾		1.19	%		1.11	%		0.06	%		1.15	%		0.49	%
Annualized return on average equity		10.76	%		9.84	%		(2.17)	%		10.31	%		2.17	%
Annualized adjusted return on average equity ⁽¹⁾		10.76	%		10.13	%		0.53	%		10.45	%		4.28	%
Annualized return on average tangible equity ⁽⁴⁾		16.79	%		15.73	%		(3.15)	%		16.27	%		3.06	%
Annualized adjusted return on average tangible equity ⁽¹⁾		16.79	%		16.15	%		0.001	%		16.48	%		6.27	%
Annualized adjusted non-interest expense to average assets⁽⁴⁾		1.89	%		1.92	%		2.02	%		1.92	%		2.01	%
Efficiency ratio ⁽⁶⁾		53.52	%		54.43	%		57.86	%		54.60	%		59.06	%

Asset Quality
Non-accrual loans				$	103,224					$	107,159		$	67,868
90+ and still accruing					—						—			—
Non-performing loans					103,224						107,159			67,868
Foreclosed assets					6,755						963			11,119
Non-performing assets					109,979						108,122			78,987
Non-performing loans to total loans held for investment					0.53	%					0.56	%		0.36	%
Non-performing assets to total assets					0.45	%					0.44	%		0.33	%
Allowance for loan losses				$	191,770					$	187,871		$	188,331
Allowance for loan losses to total non-performing loans					185.78	%					175.32	%		277.50	%
Allowance for loan losses to total loans held for investment					1.02	%					0.98	%		1.00	%
Net loan charge-offs	$	1,249		$	1,987		$	2,680		$	3,236		$	4,622
Annualized net loan charge-offs to average total loans		0.03	%		0.04	%		0.07	%		0.03	%		0.07	%

Average Balance Sheet Data
Assets	$	24,349,808		$	24,049,318		$	19,197,041		$	24,200,393		$	16,645,404
Loans, net		18,827,305			18,590,877			14,649,413			18,709,743			12,659,202
Earning assets		22,329,230			21,946,053			17,385,819			22,138,700			15,093,217
Core deposits		15,222,027			15,497,343			12,257,244			15,358,925			10,693,244
Borrowings		2,490,379			1,918,069			2,158,193			2,205,805			2,049,587
Interest-bearing liabilities		17,612,934			17,297,892			13,856,039			17,456,284			11,965,072
Stockholders' equity		2,684,342			2,638,361			2,127,469			2,661,478			1,912,820
Average yield on interest-earning assets		5.68	%		5.63	%		5.67	%		5.65	%		5.43	%
Average cost of interest-bearing liabilities		2.94	%		2.90	%		3.09	%		2.92	%		2.97	%

Notes and Reconciliation of GAAP and Non-GAAP Financial Measures

(Dollars in Thousands, except share data)

The Company has presented the following non-GAAP (U.S. Generally Accepted Accounting Principles) financial measures because it believes that these measures provide useful and comparative information to assess trends in the Company's results of operations and financial condition. Presentation of these non-GAAP financial measures is consistent with how the Company evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Company's industry. Investors should recognize that the Company's presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and the Company strongly encourages a review of its condensed consolidated financial statements in their entirety.


(1) Annualized Adjusted Return on Average Assets, Equity and Tangible Equity
	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
		2025			2025			2024			2025			2024
Net Income	$	71,981		$	64,028		$	(11,485	)	$	136,009		$	20,596
Write-down on ORE property		—			2,690			—			2,690			—
Merger-related transaction costs		—			—			18,915			—			21,117
Less: income tax expense		—			(809	)		(4,625	)		(809	)		(4,649	)
Annualized adjusted net income	$	71,981			65,909		$	2,805		$	137,890		$	37,064
Less: Amortization of Intangibles (net of tax)		6,639			6,642			4,532		$	13,281.5018		$	5,025.1308
Annualized adjusted net income for annualized adjusted return on average tangible equity	$	78,620		$	72,551		$	7,337		$	151,171		$	42,089

Annualized Adjusted Return on Average Assets		1.19	%		1.11	%		0.06	%		1.15	%		0.45	%
Annualized Adjusted Return on Average Equity		10.76	%		10.13	%		0.53	%		10.45	%		3.90	%
Annualized Adjusted Return on Average Tangible Equity		16.79	%		16.15	%		2.01	%		16.48	%		6.25	%

(2) Annualized adjusted pre-tax, pre-provision ("PTPP") returns on average assets, average equity and average tangible equity
	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
		2025			2025			2024			2025			2024
Net income (loss)	$	71,981		$	64,028		$	(11,485	)	$	136,009		$	20,596
Adjustments to net income (loss):
Provision (benefit) charge for credit losses		(2,888	)		638			69,705			(2,250	)		69,385
Write-down on ORE property					2,690
Net loss on Lakeland bond sale		—			—			2,839			—			2,839
Merger-related transaction costs		—			—			18,915			—			21,117
Income tax expense (benefit)		30,462			27,825			(9,833	)		58,287			1,055
PTPP income	$	99,555		$	95,181		$	70,141		$	194,736		$	114,992

Annualized PTPP income	$	399,314		$	386,012		$	282,106		$	392,700		$	231,248
Average assets	$	24,349,808		$	24,049,318		$	19,197,041		$	24,200,393		$	16,645,404
Average equity	$	2,684,342		$	2,638,361		$	2,127,469		$	2,661,478		$	1,912,820
Average tangible equity	$	1,877,923		$	1,822,407		$	1,468,630		$	1,850,318		$	1,354,553

Annualized PTPP return on average assets		1.64	%		1.61	%		1.47	%		1.62	%		1.39	%
Annualized PTPP return on average equity		14.88	%		14.63	%		13.26	%		14.75	%		12.09	%
Annualized PTPP return on average tangible equity		21.26	%		21.18	%		19.21	%		21.22	%		17.07	%


(3) Tangible Common Equity Ratio, Book and Tangible Book Value per Share
							June 30,			March 31,			December 31,
								2025			2025			2024
Total assets							$	24,547,286		$	24,224,759		$	24,051,825
Less: total intangible assets								800,232			809,725			819,230
Total tangible assets							$	24,547,286		$	24,224,759		$	24,051,825

Total stockholders' equity							$	2,707,555		$	2,658,794		$	2,601,207
Less: total intangible assets								800,232			809,725			819,230
Total tangible stockholders' equity							$	1,907,323		$	1,849,069		$	1,781,977

Tangible common equity ratio								8.03	%		7.90	%		7.67	%
Shares outstanding								130,624,243			130,661,195			130,489,493

Book value per share (total stockholders' equity/shares outstanding)							$	20.73		$	20.35		$	19.93
Tangible book value per share (total tangible stockholders' equity/shares outstanding)							$	14.60		$	14.15		$	13.66

(4) Annualized Return on Average Tangible Equity
	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
		2025			2025			2024			2025			2024
Total average stockholders' equity	$	2,684,342		$	2,638,361		$	2,127,469		$	2,661,478		$	1,912,820
Less: total average intangible assets		806,419			815,954			658,839			811,160			558,267
Total average tangible stockholders' equity	$	1,877,923		$	1,822,407		$	1,468,630		$	1,850,318		$	1,354,553

Net income (loss)	$	71,981		$	64,028		$	(11,485	)	$	136,009		$	20,596
Less: Amortization of Intangibles, net of tax		6,639			6,642,149			4,532			13,282			5,025
Total net income (loss)	$	78,620		$	70,670		$	(6,953	)	$	149,291		$	25,621

Annualized return on average tangible equity (net income/total average tangible stockholders' equity)		16.79	%		15.73	%		(1.90)	%		16.27	%		3.80	%

(5) Annualized Adjusted Non-Interest Expense to Average Assets
	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
		2025			2025			2024			2025			2024
Reported non-interest expense	$	114,614		$	116,267		$	115,394		$	230,881		$	187,221
Adjustments to non-interest expense:
Write-down on ORE property		—			2,690			—			—			—
Merger-related transaction costs		—			—			18,915			—			21,117
Adjusted non-interest expense	$	114,614		$	113,577		$	96,479		$	230,881		$	166,104

Annualized adjusted non-interest expense	$	459,715		$	388,036		$	388,036		$	465,589		$	334,033

Average assets	$	24,349,808		$	24,049,318		$	19,197,041		$	24,200,393		$	16,645,404

Annualized adjusted non-interest expense/average assets		1.89	%		1.92	%		2.02	%		1.92	%		2.01	%

(6) Efficiency Ratio Calculation
	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
		2025			2025			2024			2025			2024
Net interest income	$	187,094		$	181,728		$	141,506		$	368,822		$	235,176
Reported non-interest income		27,075			27,030			22,275			54,105			43,081
Adjustments to non-interest income:
Net (gain) loss on securities transactions		—			(87	)		(2,973	)		(87	)		2,974
Adjusted non-interest income		27,075			26,943			25,248			54,018			46,055
Total income	$	214,169		$	208,671		$	166,754		$	422,840		$	281,231

Adjusted non-interest expense	$	114,614		$	113,577		$	96,479		$	230,881		$	166,104

Efficiency ratio (adjusted non-interest expense/income)		53.52	%		54.43	%		57.86	%		54.60	%		59.06	%


PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Financial Condition
June 30, 2025 (Unaudited) and December 31, 2024
(Dollars in Thousands)

Assets	June 30, 2025			December 31, 2024
Cash and cash equivalents	$	258,925		$	205,939
Available for sale debt securities, at fair value		3,019,796			2,768,915
Held to maturity debt securities, net of allowance (fair value of $20,000 as of June 30, 2025 (unaudited) and $14,000 as of December 31, 2024)		308,704			327,623
Equity securities, at fair value		19,410			19,110
Federal Home Loan Bank stock		127,021			112,767
Loans held for sale		6,922			162,453
Loans held for investment		19,104,830			18,659,370
Less allowance for credit losses		187,871			193,432
Net loans		18,923,881			18,628,391
Foreclosed assets, net		963			9,473
Banking premises and equipment, net		115,709			119,622
Accrued interest receivable		92,714			91,160
Intangible assets		800,232			819,230
Bank-owned life insurance		409,949			405,893
Other assets		469,982			543,702
Total assets	$	24,547,286		$	24,051,825

Liabilities and Stockholders' Equity
Deposits:
Demand deposits	$	13,812,120		$	13,775,991
Savings deposits		1,628,971			1,679,667
Certificates of deposit of $250,000 or more		842,389			789,342
Other time deposits		2,425,044			2,378,813
Total deposits		18,708,524			18,623,813
Mortgage escrow deposits		50,291			42,247
Borrowed funds		2,374,660			2,020,435
Subordinated debentures		404,098			401,608
Other liabilities		302,158			362,515
Total liabilities		21,839,731			21,450,618

Stockholders' equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued		—			—
Common stock, $0.01 par value, 200,000,000 shares authorized, 137,565,966 shares issued and 130,624,243 shares outstanding as of June 30, 2025 and 130,489,493 outstanding as of December 31, 2024		1,376			1,376
Additional paid-in capital		1,839,314			1,834,495
Retained earnings		1,061,897			989,111
Accumulated other comprehensive loss		(103,770	)		(135,355	)
Treasury stock		(91,262	)		(88,420	)
Total stockholders' equity		2,707,555			2,601,207
Total liabilities and stockholders' equity	$	24,547,286		$	24,051,825


PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Income
Three months ended June 30, 2025, March 31, 2025 and June 30, 2024, and six months ended June 30, 2025 and 2024 (Unaudited)
(Dollars in Thousands, except per share data)

	Three Months Ended								Six Months Ended
	June 30,			March 31,		June 30,			June 30,			June 30,
		2025			2025		2024			2025			2024
Interest and dividend income:
Real estate secured loans	$	192,792		$	187,054	$	156,318		$	379,845		$	263,774
Commercial loans		78,854			75,819		58,532			154,673			94,632
Consumer loans		10,464			10,158		8,351			20,623			12,874
Available for sale debt securities, equity securities and Federal Home Loan Bank stock		31,444			29,644		20,394			61,088			32,724
Held to maturity debt securities		1,966			1,996		2,357			3,962			4,625
Deposits, federal funds sold and other short-term investments		788			675		1,859			1,463			3,041
Total interest income		316,308			305,346		247,811			621,654			411,670

Interest expense:
Deposits		96,257			97,420		81,058			193,678			133,592
Borrowed funds		24,470			17,778		20,566			42,247			37,949
Subordinated debt		8,487			8,420		4,681			16,907			4,953
Total interest expense		129,214			123,618		106,305			252,832			176,494
Net interest income		187,094			181,728		141,506			368,822			235,176
Provision (benefit) charge for credit losses		(2,888	)		638		69,705			(2,250	)		69,385
Net interest income after provision for credit losses		189,982			181,090		71,801			371,072			165,791

Non-interest income:
Fees		10,736			9,655		8,699			20,391			14,611
Wealth management income		6,948			7,328		7,769			14,275			15,257
Insurance agency income		4,942			5,651		4,488			10,593			9,281
Bank-owned life insurance		2,585			2,092		3,323			4,678			5,140
Net gain (loss) on securities transactions		—			87		(2,973	)		87			(2,974	)
Other income		1,864			2,217		969			4,081			1,766
Total non-interest income		27,075			27,030		22,275			54,105			43,081

Non-interest expense:
Compensation and employee benefits		63,249			62,366		54,888			125,615			94,936
Net occupancy expense		13,011			13,927		11,142			26,938			19,662
Data processing expense		9,599			9,605		8,433			19,203			15,217
FDIC Insurance		3,341			3,385		3,100			6,727			5,372
Amortization of intangibles		9,497			9,501		6,483			18,998			7,188
Advertising and promotion expense		1,429			1,060		1,171			2,489			2,137
Merger-related expenses		—			—		18,915			—			21,117
Other operating expenses		14,488			16,423		11,262			30,911			21,592
Total non-interest expense		114,614			116,267		115,394			230,881			187,221
Income (loss) before income tax expense		102,443			91,853		(21,318	)		194,296			21,651
Income tax expense (benefit)		30,462			27,825		(9,833	)		58,287			1,055
Net income (loss)	$	71,981		$	64,028	$	(11,485	)	$	136,009		$	20,596

Basic earnings per share	$	0.55		$	0.49	$	(0.11	)	$	1.04		$	0.23
Average basic shares outstanding		130,484,287			130,325,393		102,957,521			130,405,490			89,108,775

Diluted earnings per share	$	0.55		$	0.49	$	(0.11	)	$	1.04		$	0.23
Average diluted shares outstanding		130,500,143			130,380,475		102,957,521			130,440,958			89,116,590


PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Quarterly Average Balances
(Dollars in Thousands) (Unaudited)
	June 30, 2025						March 31, 2025						June 30, 2024
	Average Balance		Interest		Average Yield/Cost		Average Balance		Interest		Average Yield/Cost		Average Balance		Interest		Average Yield/Cost
Interest-Earning Assets:
Deposits	$	75,714	$	788	4.21	%	$	80,074	$	675	4.21	%	$	40,228	$	1,859	5.38	%
Available for sale debt securities		2,958,325		29,306	3.96	%		2,827,699		27,621	3.89	%		2,244,725		17,646	3.14	%
Held to maturity debt securities, net ⁽¹⁾		315,204		1,966	2.49	%		320,036		1,996	2.50	%		352,216		2,357	2.68	%
Equity securities, at fair value		19,235		—	—	%		19,840		—	—	%		10,373		—	—	%
Total securities		3,292,764		31,272	3.80	%		3,167,575		29,617	3.73	%		2,607,314		20,003	3.07	%
Federal Home Loan Bank stock		133,447		2,138	6.44	%		107,527		2,023	7.53	%		88,864		2,747	12.36	%
Net loans: ⁽²⁾
Total mortgage loans		13,398,650		192,792	5.77	%		13,297,168		187,054	5.70	%		10,674,109		156,318	5.81	%
Total commercial loans		4,816,237		78,854	6.57	%		4,684,572		75,819	6.56	%		3,514,602		58,532	6.62	%
Total consumer loans		612,418		10,464	6.85	%		609,137		10,158	6.76	%		460,702		8,351	7.29	%
Total net loans		18,827,305		282,110	6.01	%		18,590,877		273,031	5.95	%		14,649,413		223,201	6.05	%
Total interest-earning assets	$	22,329,230	$	316,308	5.68	%	$	21,946,053	$	305,346	5.63	%	$	17,385,819	$	247,810	5.67	%

Non-Interest Earning Assets:
Cash and due from banks		150,464						134,205						37,621
Other assets		1,870,114						1,969,060						1,773,601
Total assets	$	24,349,808					$	24,049,318					$	19,197,041

Interest-Bearing Liabilities:
Demand deposits	$	9,874,149	$	64,803	2.63	%	$	10,095,570	$	65,433	2.63	%	$	7,935,543	$	58,179	2.95	%
Savings deposits		1,647,746		900	0.22	%		1,682,596		924	0.22	%		1,454,784		832	0.23	%
Time deposits		3,197,374		30,555	3.83	%		3,199,620		31,063	3.94	%		2,086,433		22,047	4.25	%
Total deposits		14,719,269		96,258	2.62	%		14,977,786		97,420	2.64	%		11,476,760		81,058	2.84	%

Borrowed funds		2,490,379		24,470	3.94	%		1,918,069		17,778	3.76	%		2,158,193		20,565	3.83	%
Subordinated debentures		403,286		8,487	8.44	%		402,037		8,420	8.49	%		221,086		4,681	8.52	%
Total interest-bearing liabilities		17,612,934		129,215	2.94	%		17,297,892		123,618	2.90	%		13,856,039		106,304	3.09	%

Non-Interest Bearing Liabilities:
Non-interest bearing deposits		3,700,132						3,719,177						2,866,917
Other non-interest bearing liabilities		352,400						393,888						346,616
Total non-interest bearing liabilities		4,052,532						4,113,065						3,213,533
Total liabilities		21,665,466						21,410,957						17,069,572
Stockholders' equity		2,684,342						2,638,361						2,127,469
Total liabilities and stockholders' equity	$	24,349,808					$	24,049,318					$	19,197,041

Net interest income			$	187,093					$	181,728					$	141,506

Net interest rate spread					2.74	%					2.73	%					2.58	%
Net interest-earning assets	$	4,716,296					$	4,648,161					$	3,529,780

Net interest margin ⁽³⁾					3.36	%					3.34	%					3.21	%

Ratio of interest-earning assets to total interest-bearing liabilities	1.27x						1.27x						1.25x


(1)		Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses.
(2)		Average outstanding balances are net of the allowance for loan losses, deferred loan fees and expenses, loan premiums and discounts and include non-accrual loans.
(3)		Annualized net interest income divided by average interest-earning assets.


The following table summarizes the quarterly net interest margin for the previous five quarters.
	6/30/25		3/31/25		12/31/24		9/30/24		6/30/24
	2nd Qtr.		1st Qtr.		4th Qtr.		3rd Qtr.		2nd Qtr.
Interest-Earning Assets:
Securities	3.80	%	3.73	%	3.55	%	3.56	%	3.07	%
Net loans	6.01	%	5.95	%	5.99	%	6.21	%	6.05	%
Total interest-earning assets	5.68	%	5.63	%	5.66	%	5.84	%	5.67	%

Interest-Bearing Liabilities:
Deposits	2.62	%	2.64	%	2.81	%	2.96	%	2.84	%
Borrowings	3.94	%	3.76	%	3.64	%	3.73	%	3.83	%
Total interest-bearing liabilities	2.94	%	2.90	%	3.03	%	3.19	%	3.09	%

Interest rate spread	2.74	%	2.73	%	2.63	%	2.65	%	2.58	%
Net interest margin	3.36	%	3.34	%	3.28	%	3.31	%	3.21	%

Ratio of interest-earning assets to interest-bearing liabilities	1.27x		1.27x		1.27x		1.26x		1.25x


PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Average Year to Date Balances
(Dollars in Thousands) (Unaudited)

	June 30, 2025						June 30, 2024
	Average				Average		Average				Average
	Balance		Interest		Yield/Cost		Balance		Interest		Yield/Cost
Interest-Earning Assets:
Deposits	$	77,882	$	1,463	4.21	%	$	32,901	$	3,041	5.38	%
Available for sale debt securities		2,893,373		56,927	3.91	%		1,959,549		27,669	2.82	%
Held to maturity debt securities, net ⁽¹⁾		317,607		3,962	2.50	%		354,731		4,625	2.61	%
Equity securities, at fair value		19,212		—	—	%		5,525		—	—	%
Total securities		3,230,192		60,889	3.75	%		2,319,805		32,294	2.78	%
Federal Home Loan Bank stock		120,883		4,161	6.92	%		81,309		5,055	12.43	%
Net loans: ⁽²⁾
Total mortgage loans		13,351,451		379,845	5.73	%		9,326,838		263,774	5.61	%
Total commercial loans		4,747,564		154,673	6.57	%		2,953,842		94,632	6.39	%
Total consumer loans		610,728		20,623	6.81	%		378,522		12,874	6.84	%
Total net loans		18,709,743		555,141	5.98	%		12,659,202		371,280	5.83	%
Total interest-earning assets	$	22,138,700	$	621,654	5.65	%	$	15,093,217	$	411,670	5.43	%

Non-Interest Earning Assets:
Cash and due from banks		142,380						108,229
Other assets		1,919,313						1,443,958
Total assets	$	24,200,393					$	16,645,404

Interest-Bearing Liabilities:
Demand deposits	$	9,984,248	$	130,235	2.63	%	$	6,914,802	$	99,745	2.90	%
Savings deposits		1,665,075		1,824	0.22	%		1,308,983		1,469	0.23	%
Time deposits		3,198,491		61,618	3.88	%		1,575,801		32,378	4.13	%
Total deposits		14,847,814		193,677	2.63	%		9,799,586		133,592	2.74	%
Borrowed funds		2,205,805		42,247	3.86	%		2,049,587		37,949	3.75	%
Subordinated debentures		402,665		16,907	8.47	%		115,899		4,953	8.59	%
Total interest-bearing liabilities	$	17,456,284	$	252,831	2.92	%	$	11,965,072	$	176,494	2.97	%

Non-Interest Bearing Liabilities:
Non-interest bearing deposits		3,709,602						2,469,459
Other non-interest bearing liabilities		373,029						298,053
Total non-interest bearing liabilities		4,082,631						2,767,512
Total liabilities		21,538,915						14,732,584
Stockholders' equity		2,661,478						1,912,820
Total liabilities and stockholders' equity	$	24,200,393					$	16,645,404

Net interest income			$	368,823					$	235,176

Net interest rate spread					2.73	%					2.46	%
Net interest-earning assets	$	4,682,416					$	3,128,145

Net interest margin ⁽³⁾					3.35	%					3.08	%

Ratio of interest-earning assets to total interest-bearing liabilities	1.27x						1.26x


(1) Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses.
(2) Average outstanding balance are net of the allowance for loan losses, deferred loan fees and expenses, loan premium and discounts and include non-accrual loans.
(3) Annualized net interest income divided by average interest-earning assets.


The following table summarizes the year-to-date net interest margin for the previous three years.

	Six Months Ended
	June 30, 2025		June 30, 2024		June 30, 2023
Interest-Earning Assets:
Securities	3.75	%	2.78	%	2.32	%
Net loans	5.98	%	5.83	%	5.18	%
Total interest-earning assets	5.65	%	5.43	%	4.68	%

Interest-Bearing Liabilities:
Deposits	2.63	%	2.74	%	1.62	%
Borrowings	3.86	%	3.75	%	3.01	%
Total interest-bearing liabilities	2.92	%	2.97	%	1.84	%

Interest rate spread	2.73	%	2.46	%	2.84	%
Net interest margin	3.35	%	3.08	%	3.29	%

Ratio of interest-earning assets to interest-bearing liabilities	1.27x		1.26x		1.33x

SOURCE: Provident Financial Services, Inc.

CONTACT: Investor Relations, 1-732-590-9300

Web Site: http://www.Provident.Bank

Provident Financial Services, Inc. Reports Second Quarter Earnings