FALSE000117897000011789702024-01-252024-01-25

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): January 25, 2024
PROVIDENT FINANCIAL SERVICES, INC.
(Exact Name of Registrant as Specified in its Charter)
Delaware
001-31566
42-1547151
(State or Other Jurisdiction of Incorporation)
(Commission File No.)
(I.R.S. Employer Identification No.)
239 Washington Street, Jersey City, New Jersey
07302
(Address of Principal Executive Offices)
(Zip Code)
Registrant's telephone number, including area code 732-590-9200

Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol
Symbol(s)
Name of each exchange on which registered
Common
PFS
New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02    Results of Operation and Financial Condition.

On January 25, 2024, Provident Financial Services, Inc. (the “Company”) issued a press release reporting its financial results for the quarter and year ended December 31, 2023. A copy of the release is attached as Exhibit 99.1 to this report and is being furnished to the SEC and shall not be deemed “filed” for any purpose.


Item 7.01    Regulation FD Disclosure.

On January 25, 2024, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.24 per common share, payable on February 23, 2024 to stockholders of record as of the close of business on February 09, 2024. In addition, the Company announced that its Annual Meeting of Stockholders will be held on April 25, 2024 as a virtual meeting. The record date for the Annual Meeting will be February 29, 2024.

These announcements were included as part of the release announcing financial results for the quarter and year ended December 31, 2023 and attached as Exhibit 99.1 to this report. A copy of the release is being furnished to the SEC and shall not be deemed “filed” for any purpose.

Item 9.01.    Financial Statements and Exhibits

(a)     Financial Statements of Businesses Acquired. Not applicable.

(b)    Pro Forma Financial Information. Not applicable.

(c)     Shell Company Transactions. Not applicable.

(d)    Exhibits.

Exhibit No.        Description

99.1    Press release issued by the Company on January 25, 2024 announcing its financial results for the quarter and year ended December 31, 2023, the declaration of a quarterly cash dividend and the establishment of the date for the Annual Meeting of Stockholders.

104    Cover Page Interactive Data File (embedded within the Inline XBRL document)









SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.



PROVIDENT FINANCIAL SERVICES, INC.
DATE:
January 26, 2024By:/s/ Anthony J. Labozzetta
Anthony J. Labozzetta
President and Chief Executive Officer










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

ISELIN, NJ, January 25, 2024 - Provident Financial Services, Inc. (NYSE:PFS) (the “Company”) reported net income of $27.3 million, or $0.36 per basic and diluted share for the three months ended December 31, 2023, compared to $28.5 million, or $0.38 per basic and diluted share, for the three months ended September 30, 2023 and $49.0 million, or $0.66 per basic and diluted share, for the three months ended December 31, 2022. For the year ended December 31, 2023, net income totaled $128.4 million, or $1.72 per basic share and $1.71 per diluted share, compared to $175.6 million, or $2.35 per basic and diluted share, for the year ended December 31, 2022. Net income for the three months and year ended December 31, 2023 was largely impacted by a decrease in net interest income, primarily attributable to a decrease in lower-costing deposits and an increase in borrowings, combined with unfavorable repricing of both deposits and borrowings, in addition to increased provisions for credit losses primarily due to a worsened economic forecast compared to the prior year. Transaction costs related to our pending merger with Lakeland Bancorp, Inc. (“Lakeland”) totaled $2.5 million and $7.8 million, for the three months and year ended December 31, 2023, respectively, compared with transaction costs of $1.2 million and $4.1 million for the respective 2022 periods. In addition, prior year earnings for the year ended December 31, 2022, included an $8.6 million gain on the sale of a foreclosed property.
Performance Highlights for the Fourth Quarter of 2023
•The Company’s total loan portfolio increased $206.1 million, or 7.7% annualized, to $10.87 billion at December 31, 2023, from $10.67 billion at September 30, 2023.
•Net interest income before provision for credit losses remained relatively flat at $95.8 million for the three months ended December 31, 2023, compared to the prior quarter.
•The net interest margin decreased four basis points to 2.92% for the quarter ended December 31, 2023, from 2.96% for the trailing quarter.
•The average yield on total loans increased 13 basis points to 5.50% for the quarter ended December 31, 2023, compared to the trailing quarter, while the average cost of deposits, including non-interest-bearing deposits, increased 21 basis points to 1.95% for the quarter ended December 31, 2023.
•At December 31, 2023, the Company's loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $1.09 billion, with a weighted average interest rate of 7.08%.
•At December 31, 2023, CRE loans related to office properties totaled $483.1 million, compared to $483.3 million at September 30, 2023. This portfolio constitutes 4.5% of total loans. Approximately 35% of our office loans are to medical offices and we do not have significant central business district exposure. Delinquencies in the office portfolio at December 31, 2023, were limited to one loan totaling $825,000. The portfolio is granular, with an average outstanding loan balance of $1.8 million and just three relationships greater than $10.0 million.
•The Company recorded a $500,000 provision for credit losses for the quarter ended December 31, 2023, compared to an $11.0 million provision for the trailing quarter. The decrease in the provision for credit losses for the quarter was primarily attributable to an improved economic forecast for the current quarter within our Current Expected Credit Loss ("CECL") model.
•The Company's earnings for the quarter and year ended December 31, 2023 were negatively impacted by a $3.0 million charge for contingent litigation reserves, a $2.0 million write-down of a foreclosed property and a $775,000 charge for the FDIC special assessment.
•The Company's annualized adjusted pre-tax, pre-provision ("PTPP") return on average assets(1) was 1.25% for the quarter ended December 31, 2023, compared to 1.48% for the quarter ended September 30, 2023.
1

•Annualized returns on average assets, average equity and average tangible equity(1) were 0.77%, 6.60% and 9.15%, respectively for the three months ended December 31, 2023, compared with 0.81%, 6.84% and 9.47%, respectively for the trailing quarter.
Anthony J. Labozzetta, President and Chief Executive Officer commented, “Provident produced respectable financial results for the fourth quarter and the full year 2023 despite challenging market conditions throughout the year. We had solid loan growth, including annualized growth in our total loan portfolio of 7.7% during the fourth quarter. Our fee income from the wealth management and insurance agency businesses continue to make significant contributions to our overall financial success. Elevated short-term interest rates and a shift in the funding mix continued to impact our net interest margin, however, we are starting to see stabilization in our funding costs. An increased provision for loan losses largely driven by changes in our CECL economic forecast also impacted the full year's results, however, our asset quality remains strong.”
Regarding the previously announced pending merger with Lakeland Bancorp, Inc., Labozzetta added, “Provident is actively engaged in discussions with our regulators concerning the merger. Both Provident and Lakeland have agreed to extend the merger deadline to March 31, 2024, to allow additional time to obtain the necessary regulatory approvals. Provident looks forward to closing the transaction as soon as possible following receipt of the approvals.”
Declaration of Quarterly Dividend
The Company’s Board of Directors declared a quarterly cash dividend of $0.24 per common share payable on February 23, 2024, to stockholders of record as of the close of business on February 9, 2024.
Annual Meeting Date Set
The Annual Meeting of Stockholders will be held on April 25, 2024 at 10:00 a.m. Eastern Time as a virtual meeting. March 1, 2024 has been established as the record date for the determination of stockholders entitled to vote at the Annual Meeting.
Results of Operations
Three months ended December 31, 2023 compared to the three months ended September 30, 2023
For the three months ended December 31, 2023, net income was $27.3 million, or $0.36 per basic and diluted share, compared to net income of $28.5 million, or $0.38 per basic and diluted share, for the three months ended September 30, 2023.
Net Interest Income and Net Interest Margin
Net interest income decreased $448,000 to $95.8 million for the three months ended December 31, 2023, from $96.2 million for the trailing quarter. The decrease in net interest income was primarily due to a decrease in lower-costing deposits and an increase in borrowings, combined with unfavorable repricing of both deposits and borrowings, partially offset by originations of new loans at current market rates and the favorable repricing of adjustable-rate loans.
The Company’s net interest margin decreased four basis points to 2.92% for the quarter ended December 31, 2023, from 2.96% for the trailing quarter. The average yield on interest-earning assets for the quarter ended December 31, 2023 increased 15 basis points to 5.04%, compared to the trailing quarter. The average cost of interest-bearing liabilities for the quarter ended December 31, 2023 increased 21 basis points to 2.71%, compared to the trailing quarter. The average cost of interest-bearing deposits for the quarter ended December 31, 2023 increased 25 basis points to 2.47%, compared to 2.22% for the trailing quarter. The average cost of total deposits, including non-interest-bearing deposits, was 1.95% for the quarter ended December 31, 2023, compared to 1.74% for the trailing quarter. The average cost of borrowed funds for the quarter ended December 31, 2023 was 3.71%, compared to 3.74% for the quarter ended September 30, 2023.
2

Provision for Credit Losses
For the quarter ended December 31, 2023, the Company recorded a $500,000 provision for credit losses related to loans, compared with a provision for credit losses of $11.0 million for the quarter ended September 30, 2023. The decrease in the provision for credit losses for the quarter was primarily attributable to an improved economic forecast for the current quarter within our CECL model.
Non-Interest Income and Expense
For the three months ended December 31, 2023, non-interest income totaled $19.0 million, a decrease of $352,000, compared to the trailing quarter. Insurance agency income decreased $465,000 to $2.8 million for the three months ended December 31, 2023, compared to $3.2 million for the trailing quarter, largely due to a seasonal decrease in business activity. Bank owned life insurance ("BOLI") income decreased $176,000 compared to the trailing quarter, to $1.6 million for the three months ended December 31, 2023, primarily due to a benefit claim recognized in the prior quarter, partially offset by higher equity valuations. Additionally, wealth management income decreased $149,000 compared to the trailing quarter, to $6.8 million for the three months ended December 31, 2023, primarily due to a decrease in the average market value of assets under management during the period. Partially offsetting these decreases in non-interest income, other income increased $488,000 to $1.6 million for the three months ended December 31, 2023, compared to the trailing quarter, primarily due to an increase in net gains on the sale of SBA loans.
Non-interest expense totaled $74.5 million for the three months ended December 31, 2023, an increase of $7.3 million, compared to $67.2 million for the trailing quarter. Other operating expenses increased $4.9 million to $15.6 million for the three months ended December 31, 2023, compared to the trailing quarter. The increase in other operating expenses was largely due to a $3.0 million charge for contingent litigation reserves, combined with a $2.0 million write-down of a foreclosed property. Compensation and benefits expense increased $3.1 million to $38.8 million for the three months ended December 31, 2023, compared to $35.7 million for the trailing quarter. The increase in compensation and benefit expense was primarily attributable to increases in the accrual for incentive compensation, post-retirement benefit expense and employee medical benefits, partially offset by a decrease in stock-based compensation expense. FDIC insurance increased $1.3 million to $2.9 million for the three months ended December 31, 2023, compared to $1.6 million for the trailing quarter, primarily due to the FDIC special assessment, combined with an increase in the assessment rate. Additionally, data processing expense increased $1.1 million to $6.5 million for the three months ended December 31, 2023, compared to the trailing quarter, largely due to an increase in software related expenses. For the three months ended December 31, 2023, the Company recorded a $1.4 million benefit to the provision for credit losses for off-balance sheet credit exposures, compared to a $1.5 million provision for the trailing quarter. The $2.9 million decrease in the provision for credit losses for off-balance sheet credit exposures for the current quarter was primarily due to a decrease in loans approved and awaiting closing.
The Company’s annualized adjusted non-interest expense as a percentage of average assets(1) was 1.98% for the quarter ended December 31, 2023, compared to 1.80% for the trailing quarter. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)(1) was 61.32% for the three months ended December 31, 2023, compared to 54.81% for the trailing quarter.
Income Tax Expense
For the three months ended December 31, 2023, the Company's income tax expense was $12.5 million with an effective tax rate of 31.3%, compared with income tax expense of $8.8 million with an effective tax rate of 23.7% for the trailing quarter. The increase in tax expense for the three months ended December 31, 2023, compared with the trailing quarter was largely due to an increase in taxable income and a discrete item related to deferred taxes on stock-based compensation in the current quarter. This discrete item was also the primary reason for the increase in the effective tax rate for the three months ended December 31, 2023, compared with the trailing quarter.
Three months ended December 31, 2023 compared to the three months ended December 31, 2022
For the three months ended December 31, 2023, net income was $27.3 million, or $0.36 per basic and diluted share, compared to net income of $49.0 million, or $0.66 per basic and diluted share, for the three months ended December 31, 2022.
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Net Interest Income and Net Interest Margin
Net interest income decreased $18.3 million to $95.8 million for the three months ended December 31, 2023, from $114.1 million for same period in 2022. The decrease in net interest income for the three months ended December 31, 2023, was primarily due to a decrease in lower-costing deposits and an increase in borrowings, combined with unfavorable repricing of both deposits and borrowings, partially offset by originations of new loans and the favorable repricing of adjustable-rate loans.
The Company’s net interest margin decreased 70 basis points to 2.92% for the quarter ended December 31, 2023, from 3.62% for the same period last year. The average yield on interest-earning assets for the quarter ended December 31, 2023 increased 68 basis points to 5.04%, compared to 4.36% for the quarter ended December 31, 2022. The average cost of interest-bearing liabilities increased 171 basis points for the quarter ended December 31, 2023 to 2.71%, compared to 1.00% for the fourth quarter of 2022. The average cost of interest-bearing deposits for the quarter ended December 31, 2023 was 2.47%, compared to 0.90% for the same period last year. The average cost of total deposits, including non-interest-bearing deposits, was 1.95% for the quarter ended December 31, 2023, compared with 0.67% for the quarter ended December 31, 2022. The average cost of borrowed funds for the quarter ended December 31, 2023 was 3.71%, compared to 1.74% for the same period last year.
Provision for Credit Losses
For the quarter ended December 31, 2023, the Company recorded a $500,000 provision for credit losses related to loans, compared with a $3.4 million provision for credit losses for the quarter ended December 31, 2022. The decrease in the provision for credit losses was largely a function of the period-over-period improvement in the economic forecast.
Non-Interest Income and Expense
Non-interest income totaled $19.0 million for the quarter ended December 31, 2023, an increase of $702,000, compared to the same period in 2022. Other income increased $911,000 to $1.6 million for the three months ended December 31, 2023, compared to the quarter ended December 31, 2022, primarily due to an increase in net gains on the sale of SBA loans. Insurance agency income increased $454,000 to $2.8 million, for the three months ended December 31, 2023, compared to the same period in 2022, largely due to strong retention revenue and new business activity, while wealth management income increased $247,000 to $6.8 million for the three months ended December 31, 2023, compared to the same period in 2022, primarily due to an increase in the average market value of assets under management. Partially offsetting these increases in non-interest income, fee income decreased $510,000 to $6.1 million for the three months ended December 31, 2023, compared to the same period in 2022, largely due to a decrease in commercial loan prepayment fees. Additionally, BOLI income decreased $366,000 to $1.6 million for the three months ended December 31, 2023, largely due to a benefit claim recognized in the same period in 2022.

Non-interest expense totaled $74.5 million for the three months ended December 31, 2023, an increase of $12.8 million, compared to $61.7 million for the three months ended December 31, 2022. Other operating expenses increased $5.2 million to $15.6 million for the three months ended December 31, 2023, compared to the same period in 2022. The increase in other operating expenses was largely due to a $3.0 million charge for contingent litigation reserves, combined with a $2.0 million write-down of a foreclosed property. Compensation and benefits expense increased $4.2 million to $38.8 million for three months ended December 31, 2023, compared to $34.6 million for the same period in 2022. The increase was principally due to increases in salary expense, employee medical benefits and post-retirement benefit expense, partially offset by decreases in the accrual for incentive compensation and stock-based compensation. FDIC insurance increased $1.7 million to $2.9 million for the three months ended December 31, 2023, compared to $1.2 million for the same period in 2022, primarily due to an increase in the assessment rate and the FDIC special assessment. Additionally, data processing expense increased $1.3 million to $6.5 million for the three months ended December 31, 2023, compared to the same period in 2022, largely due to an increase in software related expenses. Merger-related expense increased $1.2 million to $2.5 million for the three months ended December 31, 2023, compared to the same period in 2022. Partially offsetting these increases, net occupancy expenses decreased $507,000 to $7.8 million for the three months ended December 31, 2023, compared to the same period in 2022, largely due to decreases in maintenance, depreciation and rent expenses.
4

The Company’s annualized adjusted non-interest expense as a percentage of average assets(1) was 1.98% for the quarter ended December 31, 2023, compared to 1.79% for the same period in 2022. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)(1) was 61.32% for the three months ended December 31, 2023 compared to 46.88% for the same respective period in 2022.
Income Tax Expense
For the three months ended December 31, 2023, the Company's income tax expense was $12.5 million with an effective tax rate of 31.3%, compared with $18.2 million with an effective tax rate of 27.1% for the three months ended December 31, 2022. The decrease in tax expense for the three months ended December 31, 2023, compared with the same period last year was largely the result of a decrease in taxable income. The increase in the effective tax rate for the three months ended December 31, 2023, compared with the three months ended December 31, 2022, was primarily due to a discrete item recorded in the current quarter related to deferred taxes on stock-based compensation.
Year Ended December 31, 2023 compared to the Year ended December 31, 2022
For the year ended December 31, 2023, net income totaled $128.4 million, or $1.72 per basic share and $1.71 per diluted share, compared to net income of $175.6 million, or $2.35 per basic and diluted share, for the year ended December 31, 2022.
Net Interest Income and Net Interest Margin
Net interest income decreased $18.1 million to $399.5 million for the year ended December 31, 2023, from $417.6 million for same period in 2022. The decrease in net interest income for the year ended December 31, 2023, was primarily due to a decrease in lower-costing deposits and an increase in borrowings, combined with unfavorable repricing of both deposits and borrowings, partially offset by originations of new loans and the favorable repricing of adjustable-rate loans. For the year ended December 31, 2023, fees related to the forgiveness of PPP loans decreased $1.4 million to $7,000, compared to $1.4 million for the year ended December 31, 2022.
For the year ended December 31, 2023, the net interest margin decreased 21 basis points to 3.16%, compared to 3.37% for the year ended December 31, 2022. The average yield on interest earning assets increased 111 basis points to 4.87% for the year ended December 31, 2023, compared to 3.76% for the year ended December 31, 2022, while the average cost of interest-bearing liabilities increased 170 basis points to 2.24% for the year ended December 31, 2023, compared to 0.54% last year. The average cost of interest-bearing deposits increased 152 basis points to 1.99% for the year ended December 31, 2023, compared to 0.47% in the prior year. Average non-interest-bearing demand deposits decreased $421.0 million to $2.33 billion for the year ended December 31, 2023, compared with $2.75 billion for the year ended December 31, 2022, with the majority of the decrease coming from transfers to our Insured Cash Sweep (“ICS”) product following the March 2023 bank failures. The average cost of total deposits, including non-interest-bearing deposits, was 1.54% for the year ended December 31, 2023, compared with 0.35% for the year ended December 31, 2022. The average cost of borrowings for the year ended December 31, 2023 was 3.41%, compared to 1.23% in the prior year.
Provision for Credit Losses
For the year ended December 31, 2023, the Company recorded a $27.9 million provision for credit losses related to loans, compared with a provision for credit losses of $8.4 million for the year ended December 31, 2022. The increase in the year-over-year provision for credit losses was primarily attributable to a worsened economic forecast and related deterioration in the projected commercial property price indices used in our CECL model. For the year ended December 31, 2023, net charge-offs totaled $8.1 million, or 8 basis points of average loans, which was primarily attributable to two commercial loans.
Non-Interest Income and Expense
For the year ended December 31, 2023, non-interest income totaled $79.8 million, a decrease of $8.0 million, compared to the same period in 2022. Other income decreased $6.9 million to $7.3 million for the year ended December 31, 2023, compared to $14.2 million for the same period in 2022, primarily due to an $8.6 million gain realized in the prior year on the sale of a foreclosed commercial office property, partially offset by an increase in gains on sales of SBA loans. Additionally, fee income decreased $3.7 million to $24.4 million for the year ended
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December 31, 2023, compared to the same period in 2022, primarily due to a decrease in commercial loan prepayment fees. Partially offsetting these decreases in non-interest income, insurance agency income increased $2.5 million to $13.9 million for the year ended December 31, 2023, compared to $11.4 million for the same period in 2022, largely due to increases in retention revenue and new business activity. BOLI income increased $494,000 to $6.5 million for the year ended December 31, 2023, compared to the same period in 2022, largely due to greater equity valuations, partially offset by a decrease in benefit claims recognized.
Non-interest expense totaled $275.6 million for the year ended December 31, 2023, an increase of $18.8 million, compared to $256.8 million for the year ended December 31, 2022. Other operating expense increased $8.5 million to $47.4 million for the year ended December 31, 2023, compared to $38.9 million for the year ended December 31, 2022. The increase in other operating expenses was largely due to a $3.0 million charge for contingent litigation reserves, combined with a $2.0 million write-down of a foreclosed property and an increase in professional fees. Merger-related expense increased $3.7 million to $7.8 million for the year ended December 31, 2023, compared to 2022. The Company recorded a $264,000 provision for credit losses for off-balance sheet credit exposures, compared to a $3.4 million negative provision last year. The $3.6 million increase in the provision for credit losses for off-balance sheet credit exposures for the year was primarily due to a period over period decrease in line of credit utilization, combined with a period over period increase in loans approved and awaiting closing. FDIC insurance increased $3.4 million to $8.6 million for the year ended December 31, 2023, compared to $5.2 million for the trailing year, primarily due to an increase in the assessment rate and the FDIC special assessment. Data processing expense increased $1.3 million to $23.0 million for the year ended December 31, 2023, mainly due to an increase in software service and core processing expenses. Compensation and benefits expense increased $1.3 million to $148.5 million for the year ended December 31, 2023, compared to $147.2 million for the year ended December 31, 2022, primarily due to increases in salary expense, employee medical benefits and post-retirement benefit expense, partially offset by decreases in the accrual for incentive compensation and stock-based compensation. Partially offsetting these increases, net occupancy expense decreased $2.3 million to $32.3 million for the year ended December 31, 2023, compared to the same period in 2022, mainly due to decreases in depreciation and maintenance expenses.
Income Tax Expense
For the year ended December 31, 2023, the Company's income tax expense was $47.4 million with an effective tax rate of 27.0%, compared with $64.5 million with an effective tax rate of 26.8% for the year ended December 31, 2022. The decrease in tax expense for the year ended December 31, 2023, compared with the same period last year was largely the result of a decrease in taxable income.
Asset Quality
The Company’s total non-performing loans at December 31, 2023 were $49.6 million, or 0.46% of total loans, compared to $39.5 million or 0.37% of total loans at September 30, 2023 and $58.5 million, or 0.57% of total loans at December 31, 2022. The $10.1 million increase in non-performing loans at December 31, 2023, compared to the trailing quarter, consisted of a $19.6 million increase in non-performing commercial loans and a $138,000 increase in non-performing consumer loans, partially offset by a $6.5 million decrease in non-performing commercial mortgage loans, a $1.5 million decrease in non-performing multi-family loans, a $1.1 million decrease in non-performing construction loans and a $476,000 decrease in non-performing residential loans. At December 31, 2023, impaired loans totaled $42.3 million with related specific reserves of $2.9 million, compared with impaired loans totaling $30.4 million with related specific reserves of $3.4 million at September 30, 2023. At December 31, 2022, impaired loans totaled $42.8 million with related specific reserves of $2.4 million.
At December 31, 2023, the Company’s allowance for credit losses related to the loan portfolio was 0.99% of total loans, compared to 1.01% and 0.86% at September 30, 2023 and December 31, 2022, respectively. The allowance for credit losses increased $19.2 million to $107.2 million at December 31, 2023, from $88.0 million at December 31, 2022. The increase in the allowance for credit losses on loans at December 31, 2023 compared to December 31, 2022 was due to a $27.9 million provision for credit losses, partially offset by net charge-offs of $8.1 million. The increase in the allowance for credit losses on loans was primarily due to the weakened economic forecast used in our CECL model, combined with an increase in total loans outstanding.
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The following table sets forth accruing past due loans and non-accrual loans on the dates indicated, as well as certain asset quality ratios.
 December 31, 2023September 30, 2023December 31, 2022
 
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 loans1 $825 — $— 2 $2,300 
Multi-family mortgage loans1 3,815 2 5,473 1 790 
Construction loans— — — — 1 905 
Residential mortgage loans13 3,429 9 1,588 10 1,411 
Total mortgage loans15 8,069 11 7,061 14 5,406 
Commercial loans6 998 6 1,959 5 964 
Consumer loans31 875 27 1,207 18 885 
Total 30 to 59 days past due52 $9,942 44 $10,227 37 $7,255 
60 to 89 days past due:
Commercial mortgage loans— $— 2 $587 2 $412 
Multi-family mortgage loans1 1,635 — — — — 
Construction loans— — — — 1 1,097 
Residential mortgage loans8 1,208 7 936 9 1,114 
Total mortgage loans9 2,843 9 1,523 12 2,623 
Commercial loans3 198 4 228 5 1,014 
Consumer loans5 275 4 168 4 147 
Total 60 to 89 days past due17 3,316 17 1,919 21 3,784 
Total accruing past due loans69 $13,258 61 $12,146 58 $11,039 
Non-accrual:
Commercial mortgage loans7 $5,151 9 $11,667 10 $28,212 
Multi-family mortgage loans1 744 2 2,258 1 1,565 
Construction loans1 771 2 1,868 2 1,878 
Residential mortgage loans7 853 11 1,329 14 1,928 
Total mortgage loans16 7,519 24 17,122 27 33,583 
Commercial loans26 41,487 27 21,912 34 24,188 
Consumer loans10 633 7 495 10 738 
Total non-accrual loans52 $49,639 58 $39,529 71 $58,509 
Non-performing loans to total loans0.46 %0.37 %0.57 %
Allowance for loan losses to total non-performing loans215.96 %272.11 %150.44 %
Allowance for loan losses to total loans0.99 %1.01 %0.86 %
At December 31, 2023 and December 31, 2022, the Company held foreclosed assets of $11.7 million and $2.1 million, respectively. During the year ended December 31, 2023, there were four additions to foreclosed assets with an aggregate carrying value of $15.1 million, four properties sold with an aggregate carrying value of $3.7 million and one write-down of $2.0 million. Foreclosed assets at December 31, 2023 consisted primarily of commercial real estate. Total non-performing assets at December 31, 2023 increased $657,000 to $61.3 million, or 0.43% of total assets, from $60.6 million, or 0.44% of total assets at December 31, 2022.
7

Balance Sheet Summary
Total assets at December 31, 2023 were $14.2 billion, a $427.4 million increase from December 31, 2022. The increase in total assets was primarily due to a $624.8 million increase in total loans, partially offset by a $127.5 million decrease in total investments.
The Company’s loan portfolio totaled $10.9 billion at December 31, 2023 and $10.2 billion at December 31, 2022. The loan portfolio consists of the following:
December 31, 2023September 30, 2023December 31, 2022
(Dollars in thousands)
Mortgage loans:
Commercial$4,512,411 $4,411,099 $4,316,185 
Multi-family1,812,500 1,790,039 1,513,818 
Construction653,246 667,462 715,494 
Residential1,164,956 1,167,570 1,177,698 
Total mortgage loans8,143,113 8,036,170 7,723,195 
Commercial loans2,442,406 2,340,080 2,233,670 
Consumer loans299,164 302,769 304,780 
Total gross loans10,884,683 10,679,019 10,261,645 
Premiums on purchased loans1,474 1,413 1,380 
Net deferred fees and unearned discounts(12,456)(12,820)(14,142)
Total loans$10,873,701 $10,667,612 $10,248,883 
For the year ended December 31, 2023, the Company experienced net increases of $298.7 million in multi-family loans, $208.7 million in commercial loans and $196.2 million in commercial mortgage loans, partially offset by net decreases of $62.2 million in construction loans and net decreases in residential mortgage and consumer loans of $12.7 million and $5.6 million, respectively. Commercial loans, consisting of commercial real estate, multi-family, commercial and construction loans, represented 86.5% of the loan portfolio at December 31, 2023, compared to 85.6% at December 31, 2022.
For the year ended December 31, 2023, loan funding, including advances on lines of credit, totaled $3.34 billion, compared with $3.95 billion for the same period in 2022.
At December 31, 2023, the Company’s unfunded loan commitments totaled $2.09 billion, including commitments of $1.16 billion in commercial loans, $539.6 million in construction loans and $58.9 million in commercial mortgage loans. Unfunded loan commitments at September 30, 2023 and December 31, 2022 totaled $2.18 billion and $2.06 billion, respectively.
The loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $1.09 billion at December 31, 2023, compared to $1.70 billion at September 30, 2023 and $1.29 billion at December 31, 2022.
Total investment securities were $2.13 billion at December 31, 2023, a $127.5 million decrease from December 31, 2022. This decrease was primarily due to repayments of mortgage-backed securities, a decrease in unrealized losses on available for sale debt securities and maturities and calls of certain municipal and agency bonds, partially offset by purchases of mortgage-backed and municipal securities.
Total deposits decreased $270.5 million during the year ended December 31, 2023, to $10.29 billion. Total savings and demand deposit accounts decreased $615.0 million to $9.20 billion at December 31, 2023, while total time deposits increased $344.5 million to $1.10 billion at December 31, 2023. The decrease in savings and demand deposits was largely attributable to a $440.6 million decrease in non-interest-bearing demand deposits, a $262.9 million decrease in savings deposits and a $216.8 million decrease in money market deposits, partially offset by a $305.3 million increase in interest-bearing demand deposits. During the year ended December 31, 2023, ICS deposits increased $461.3 million to $520.2 million at December 31, 2023, from $58.9 million at December 31, 2022. The
8

increase in time deposits consisted of a $366.4 million increase in retail time deposits, partially offset by a $21.9 million decrease in brokered time deposits.
Borrowed funds increased $632.7 million during the year ended December 31, 2023, to $1.97 billion. The increase in borrowings was largely due to asset funding requirements. Borrowed funds represented 13.9% of total assets at December 31, 2023, an increase from 9.7% at December 31, 2022.
Stockholders’ equity increased $92.9 million during the year ended December 31, 2023, to $1.69 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 year ended December 31, 2023, common stock repurchases totaled 71,781 shares at an average cost of $23.28 per share, all of which were made in connection with withholding to cover income taxes on the vesting of stock-based compensation. At December 31, 2023, approximately 1.1 million shares remained eligible for repurchase under the current stock repurchase authorization. Book value per share and tangible book value per share(1) at December 31, 2023 were $22.38 and $16.32, respectively, compared with $21.25 and $15.12, respectively, at December 31, 2022.
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 northern and central New Jersey, Bucks, Lehigh and Northampton counties in Pennsylvania, as well as 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 Friday, January 26, 2024 at 10:00 a.m. Eastern Time to discuss the Company’s financial results for the quarter and year ended December 31, 2023. 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."
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, competitive products and pricing, fiscal and monetary policies of the U.S. Government, the effects of the recent turmoil in the banking industry (including the closing of three financial institutions), 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, the ability to complete, or any delays in completing, the pending merger between the Company and Lakeland; any failure to realize the anticipated benefits of the transaction when expected or at all; certain restrictions during the pendency of the transaction that may impact the Company’s ability to pursue certain business opportunities or strategic transactions; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events, diversion of management’s attention from ongoing business operations and opportunities; potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the merger and integration of the companies; and the impact of a potential shutdown of the federal government.
9

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 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.












10

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
Year ended
December 31,September 30,December 31,December 31,December 31,
20232023202220232022
Statement of Income
Net interest income$95,788 $96,236 $114,060 $399,454 $417,552 
Provision for credit losses497 11,009 3,384 27,904 8,388 
Non-interest income18,968 19,320 18,266 79,829 87,789 
Non-interest expense74,491 67,157 61,674 275,600 256,847 
Income before income tax expense39,768 37,390 67,268 175,779 240,106 
Net income27,312 28,547 49,034 128,398 175,648 
Diluted earnings per share$0.36 $0.38 $0.66 $1.71 $2.35 
Interest rate spread2.33 %2.39 %3.36 %2.63 %3.22 %
Net interest margin2.92 %2.96 %3.62 %3.16 %3.37 %
Profitability
Annualized return on average assets0.77 %0.81 %1.42 %0.92 %1.29 %
Annualized return on average equity6.60 %6.84 %12.37 %7.81 %10.86 %
Annualized return on average tangible equity (2)
9.15 %9.47 %17.51 %10.84 %15.20 %
Annualized adjusted non-interest expense to average assets (3)
1.98 %1.80 %1.79 %1.90 %1.88 %
Efficiency ratio (4)
61.32 %54.81 %46.88 %55.19 %50.68 %
Asset Quality
Non-accrual loans$39,529 $49,639 $58,509 
90+ and still accruing— — — 
Non-performing loans39,529 49,639 58,509 
Foreclosed assets16,487 11,651 2,124 
Non-performing assets56,016 61,290 60,633 
Non-performing loans to total loans0.37 %0.46 %0.57 %
Non-performing assets to total assets0.40 %0.43 %0.44 %
Allowance for loan losses$107,563 $107,200 $88,023 
Allowance for loan losses to total non-performing loans272.11 %215.96 %150.44 %
Allowance for loan losses to total loans1.01 %0.99 %0.86 %
Net loan charge-offs$863 5,510 $4,010 $8,129 $1,117 
Annualized net loan charge offs to average total loans 0.03 %0.21 %0.16 %0.08 %0.01 %
Average Balance Sheet Data
Assets$14,114,626 $13,976,610 $13,714,201 $13,915,467 $13,642,849 
Loans, net10,660,201 10,470,843 10,107,451 10,367,620 9,798,822 
Earning assets12,823,541 12,735,938 12,406,641 12,637,224 12,412,830 
Savings and demand deposits9,210,315 9,212,202 10,092,807 9,358,290 10,318,261 
Borrowings1,873,822 1,780,655 1,031,974 1,636,572 756,275 
Interest-bearing liabilities10,020,726 9,826,064 9,164,135 9,671,794 9,025,495 
Stockholders' equity1,642,854 1,654,920 1,572,572 1,644,529 1,618,090 
Average yield on interest-earning assets5.04 %4.89 %4.36 %4.87 %3.76 %
Average cost of interest-bearing liabilities2.71 %2.50 %1.00 %2.24 %0.54 %


11

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 Pre-Tax, Pre-Provision ("PTPP") Return on Average Assets
Three Months EndedYear Ended
December 31,September 30,December 31,December 31,December 31,
20232023202220232022
Net income$27,312 $28,547 $49,034 $128,398 $175,648 
Adjustments to net income:
Provision for credit losses497 11,009 3,384 27,904 8,388 
Credit (benefit) loss expense for off-balance sheet credit exposure(1,360)1,532 (1,596)264 (3,384)
Merger-related transaction costs2,477 2,289 1,242 7,826 4,128 
Contingent litigation reserves3,000 — — 3,000 — 
Income tax expense12,456 8,843 18,234 47,381 64,458 
Adjusted PTPP income$44,382 $52,220 $70,298 $214,773 $249,238 
Annualized Adjusted PTPP income$176,081 $207,177 $278,900 $214,773 $249,238 
Average assets$14,114,626 $13,976,610 $13,714,201 $13,915,467 $13,642,849 
Annualized Adjusted PTPP return on average assets 1.25 %1.48 %2.03 %1.54 %1.83 %
(2) Annualized Return on Average Tangible Equity
Three Months EndedYear Ended
December 31,September 30,December 31,December 31,December 31,
20232023202220232022
Total average stockholders' equity$1,642,854 $1,654,920 $1,572,572 $1,644,529 $1,618,090 
Less: total average intangible assets458,410 459,133 461,402 459,503 462,620 
Total average tangible stockholders' equity$1,184,444 $1,195,787 $1,111,170 $1,185,026 $1,155,470 
Net income$27,312 $28,547 $49,034 $128,398 $175,648 
Annualized return on average tangible equity (net income/total average tangible stockholders' equity)9.15 %9.47 %17.51 %10.84 %15.20 %
(3) Annualized Adjusted Non-Interest Expense to Average Assets
Three Months EndedYear Ended
December 31,September 30,December 31,December 31,December 31,
20232023202220232022
Reported non-interest expense$74,491 $67,157 $61,674 $275,600 $256,847 
Adjustments to non-interest expense:
Credit (benefit) loss expense for off-balance sheet credit exposure(1,360)1,532 (1,596)264 (3,384)
Merger-related transaction costs2,477 2,289 1,242 7,826 4,128 
Contingent litigation reserves3,000 — — 3,000 — 
Adjusted non-interest expense$70,374 $63,336 $62,028 $264,510 $256,103 
Annualized adjusted non-interest expense$279,201 $251,279 $246,089 $264,510 $256,103 
Average assets$14,114,626 $13,976,610 $13,714,201 $13,915,467 $13,642,849 
Annualized adjusted non-interest expense/average assets1.98 %1.80 %1.79 %1.90 %1.88 %
12

(4) Efficiency Ratio Calculation
Three Months EndedYear Ended
December 31,September 30,December 31,December 31,December 31,
20232023202220232022
Net interest income$95,788 $96,236 $114,060 $399,454 $417,552 
Non-interest income18,968 19,320 18,266 79,829 87,789 
Total income$114,756 $115,556 $132,326 $479,283 $505,341 
Adjusted non-interest expense $70,374 $63,336 $62,028 $264,510 $256,103 
Efficiency ratio (adjusted non-interest expense/income)61.32 %54.81 %46.88 %55.19 %50.68 %
(5) Book and Tangible Book Value per Share
December 31,December 31,
20232022
Total stockholders' equity$1,690,596 $1,597,703 
Less: total intangible assets457,942 460,892 
Total tangible stockholders' equity$1,232,654 $1,136,811 
Shares outstanding75,537,186 75,169,196 
Book value per share (total stockholders' equity/shares outstanding)$22.38 $21.25 
Tangible book value per share (total tangible stockholders' equity/shares outstanding)$16.32 $15.12 
13

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Financial Condition
December 31, 2023 (Unaudited) and December 31, 2022
(Dollars in Thousands)
AssetsDecember 31, 2023December 31, 2022
Cash and due from banks$180,241 $186,490 
Short-term investments14 18 
Total cash and cash equivalents180,255 186,508 
Available for sale debt securities, at fair value1,690,112 1,803,548 
Held to maturity debt securities, net (fair value of $352,601 and $373,468 at December 31, 2023 and December 31, 2022, respectively).363,080 387,923 
Equity securities, at fair value1,270 1,147 
Federal Home Loan Bank stock79,217 68,554 
Loans10,873,701 10,248,883 
Less allowance for credit losses107,200 88,023 
Net loans10,766,501 10,160,860 
Foreclosed assets, net11,651 2,124 
Banking premises and equipment, net70,998 79,794 
Accrued interest receivable58,966 51,903 
Intangible assets457,942 460,892 
Bank-owned life insurance243,050 239,040 
Other assets287,768 341,143 
Total assets$14,210,810 $13,783,436 
Liabilities and Stockholders' Equity
Deposits:
Demand deposits$8,020,889 $8,373,005 
Savings deposits1,175,683 1,438,583 
Certificates of deposit of $250,000 or more373,701 289,684 
Other time deposits722,241 423,180 
Total deposits10,292,514 10,563,024 
Mortgage escrow deposits36,838 35,705 
Borrowed funds1,970,033 1,337,370 
Subordinated debentures10,695 10,493 
Other liabilities210,134 239,141 
Total liabilities12,520,214 12,185,733 
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, 83,209,012 shares issued and 75,537,186 shares outstanding at December 31, 2023, and 75,169,196 shares outstanding at December 31, 2022, respectively.832 832 
Additional paid-in capital989,058 981,138 
Retained earnings974,542 918,158 
Accumulated other comprehensive (loss) income (141,115)(165,045)
Treasury stock(127,825)(127,154)
Unallocated common stock held by the Employee Stock Ownership Plan(4,896)(10,226)
Common Stock acquired by the Directors' Deferred Fee Plan(2,694)(3,427)
Deferred Compensation - Directors' Deferred Fee Plan2,694 3,427 
Total stockholders' equity1,690,596 1,597,703 
Total liabilities and stockholders' equity$14,210,810 $13,783,436 
14

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Income
Three months ended December 31, 2023, September 30, 2023 (Unaudited) and December, 2022,
and year ended December 31, 2023 (Unaudited) and 2022
(Dollars in Thousands, except per share data)
Three Months EndedYear Ended
December 31,September 30,December 31,December 31,December 31,
20232023202220232022
Interest and dividend income:
Real estate secured loans$109,112 $104,540 $91,140 $408,942 $304,321 
Commercial loans34,939 33,806 28,576 128,854 98,961 
Consumer loans5,020 4,746 4,100 18,439 14,368 
Available for sale debt securities, equity securities and Federal Home Loan Bank stock12,042 11,886 10,653 46,790 36,619 
Held to maturity debt securities2,303 2,334 2,393 9,362 9,894 
Deposits, federal funds sold and other short-term investments755 885 313 3,433 2,018 
Total interest income164,171 158,197 137,175 615,820 466,181 
Interest expense:
Deposits50,579 44,923 18,383 159,459 38,704 
Borrowed funds17,527 16,765 4,520 55,856 9,310 
Subordinated debt277 273 212 1,051 615 
Total interest expense68,383 61,961 23,115 216,366 48,629 
Net interest income95,788 96,236 114,060 399,454 417,552 
Provision charge for credit losses497 11,009 3,384 27,904 8,388 
Net interest income after provision for credit losses95,291 85,227 110,676 371,550 409,164 
Non-interest income:
Fees6,102 6,132 6,612 24,396 28,128 
Wealth management income6,843 6,992 6,596 27,669 27,870 
Insurance agency income2,759 3,224 2,305 13,934 11,440 
Bank-owned life insurance1,644 1,820 2,010 6,482 5,988 
Net gain on securities transactions(7)13 27 30 181 
Other income1,627 1,139 716 7,318 14,182 
Total non-interest income18,968 19,320 18,266 79,829 87,789 
Non-interest expense:
Compensation and employee benefits38,773 35,702 34,621 148,497 147,203 
Net occupancy expense7,797 8,113 8,304 32,271 34,566 
Data processing expense6,457 5,312 5,178 22,993 21,729 
FDIC Insurance2,890 1,628 1,240 8,578 5,195 
Amortization of intangibles721 720 781 2,952 3,292 
Advertising and promotion expense1,100 1,133 1,499 4,822 5,191 
Credit loss (benefit) expense for off-balance sheet exposures(1,360)1,532 (1,596)264 (3,384)
Merger-related expenses2,477 2,289 1,242 7,826 4,128 
Other operating expenses15,636 10,728 10,405 47,397 38,927 
Total non-interest expense74,491 67,157 61,674 275,600 256,847 
Income before income tax expense39,768 37,390 67,268 175,779 240,106 
Income tax expense12,456 8,843 18,234 47,381 64,458 
Net income$27,312 $28,547 $49,034 $128,398 $175,648 
Basic earnings per share$0.36 $0.38 $0.66 $1.72 $2.35 
Average basic shares outstanding74,995,70574,909,08374,380,93374,844,48974,700,623
Diluted earnings per share$0.36 $0.38 $0.66 $1.71 $2.35 
Average diluted shares outstanding75,041,54574,914,20574,443,51174,873,25674,782,370
15

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Quarterly Average Balances
 (Dollars in Thousands) (Unaudited)
December 31, 2023September 30, 2023December 31, 2022
Average BalanceInterestAverage
Yield/Cost		Average BalanceInterestAverage
Yield/Cost		Average BalanceInterestAverage
Yield/Cost
Interest-Earning Assets:
Deposits$54,998 $745 5.37 %$74,183 $884 4.73 %$31,481 $310 3.90 %
Federal funds sold and other short-term investments83810 4.39 %571 4.00 %3143 3.57 %
Available for sale debt securities1,647,9069,8582.39 %1,724,83310,127 2.35 %1,818,3569,8252.16 %
Held to maturity debt securities, net (1)
364,4332,3032.53 %373,6812,334 2.50 %389,7292,3932.46 %
Equity securities, at fair value1,016 — — %1,068 — — %938 — — %
Federal Home Loan Bank stock94,1492,1849.28 %91,2731,7597.71 %58,3728285.67 %
Net loans: (2)
Total mortgage loans8,028,300109,1125.34 %7,881,193104,5405.21 %7,625,04491,1404.70 %
Total commercial loans2,329,43034,9395.90 %2,289,26733,8065.81 %2,172,35828,5765.17 %
Total consumer loans302,4715,0206.58 %300,3834,7466.27 %310,0494,1005.25 %
Total net loans10,660,201149,0715.50 %10,470,843143,0925.37 %10,107,451123,8164.82 %
Total interest-earning assets$12,823,541 $164,171 5.04 %$12,735,938 $158,197 4.89 %$12,406,641 $137,175 4.36 %
Non-Interest Earning Assets:
Cash and due from banks111,61082,522134,847
Other assets1,179,475 1,158,150 1,172,713
Total assets$14,114,626 $13,976,610 $13,714,201 
Interest-Bearing Liabilities:
Demand deposits$5,856,916 $39,648 2.69 %$5,741,052 $35,290 2.44 %$5,927,504 $15,405 1.03 %
Savings deposits1,183,8576020.20 %1,240,9515920.19 %1,479,2604040.11 %
Time deposits1,095,46810,3293.74 %1,052,7939,0413.41 %714,9382,5741.43 %
Total Deposits8,136,24150,5792.47 %8,034,79644,9232.22 %8,121,70218,3830.90 %
Borrowed funds1,873,82217,5273.71 %1,780,65516,7653.74 %1,031,9744,5201.74 %
Subordinated debentures10,663 277 10.27 %10,613 273 10.24 %10,459 212 8.03 %
Total interest-bearing liabilities10,020,72668,3832.71 %9,826,06461,9612.50 %9,164,13523,1151.00 %
Non-Interest Bearing Liabilities:
Non-interest bearing deposits2,169,5422,230,1992,686,043
Other non-interest bearing liabilities281,504265,427291,451
Total non-interest bearing liabilities2,451,0462,495,6262,977,494
Total liabilities12,471,77212,321,69012,141,629
Stockholders' equity1,642,8541,654,9201,572,572
Total liabilities and stockholders' equity$14,114,626 $13,976,610 $13,714,201 
Net interest income$95,788 $96,236 $114,060 
Net interest rate spread2.33 %2.39 %3.36 %
Net interest-earning assets$2,802,815 $2,909,874 $3,242,506 
Net interest margin (3)
2.92 %2.96 %3.62 %
Ratio of interest-earning assets to total interest-bearing liabilities1.28x1.30x1.35x
(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.
16

The following table summarizes the quarterly net interest margin for the previous five quarters.
12/31/239/30/236/30/233/31/2312/31/22
4th Qtr.3rd Qtr.2nd Qtr.1st Qtr.4th Qtr.
Interest-Earning Assets:
Securities2.79 %2.67 %2.53 %2.52 %2.32 %
Net loans5.50 %5.37 %5.24 %5.12 %4.82 %
Total interest-earning assets5.04 %4.89 %4.73 %4.63 %4.36 %
Interest-Bearing Liabilities:
Total deposits2.47 %2.22 %1.85 %1.39 %0.90 %
Total borrowings3.71 %3.74 %3.41 %2.48 %1.74 %
Total interest-bearing liabilities2.71 %2.50 %2.13 %1.54 %1.00 %
Interest rate spread2.33 %2.39 %2.60 %3.09 %3.36 %
Net interest margin2.92 %2.96 %3.11 %3.48 %3.62 %
Ratio of interest-earning assets to interest-bearing liabilities1.28x1.30x1.31x1.34x1.35x


















17

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Average Year to Date Balances
(Dollars in Thousands) (Unaudited)
December 31, 2023December 31, 2022
AverageAverageAverageAverage
BalanceInterestYield/CostBalanceInterestYield/Cost
Interest-Earning Assets:
Deposits$65,991 $3,421 5.18 %$102,505 $809 0.79 %
Federal funds sold and other short-term investments255 12 4.55 %84,969 1,208 1.42 %
Available for sale debt securities1,745,105 40,678 2.33 %1,975,641 34,612 1.75 %
Held to maturity debt securities, net (1)
375,436 9,362 2.49 %407,236 9,894 2.43 %
Equity securities, at fair value1,020 — — %999 — — %
Federal Home Loan Bank stock81,797 6,112 7.47 %42,658 2,008 4.71 %
Net loans: (2)
Total mortgage loans7,813,764 408,942 5.23 %7,348,482 304,321 4.14 %
Total commercial loans2,251,175 128,854 5.72 %2,131,685 98,961 4.64 %
Total consumer loans302,681 18,439 6.09 %318,655 14,368 4.51 %
Total net loans10,367,620 556,235 5.37 %9,798,822 417,650 4.26 %
Total interest-earning assets$12,637,224 $615,820 4.87 %$12,412,830 $466,181 3.76 %
Non-Interest Earning Assets:
Cash and due from banks119,232 128,523 
Other assets1,159,011 1,101,496 
Total assets$13,915,467 $13,642,849 
Interest-Bearing Liabilities:
Demand deposits$5,747,671 $125,471 2.18 %$6,076,653 $32,047 0.53 %
Savings deposits1,282,062 2,184 0.17 %1,492,046 1,276 0.09 %
Time deposits994,901 31,804 3.20 %690,140 5,381 0.78 %
Total deposits8,024,634 159,459 1.99 %8,258,839 38,704 0.47 %
Borrowed funds1,636,572 55,856 3.41 %756,275 9,310 1.23 %
Subordinated debentures10,588 1,051 9.92 %10,381 615 5.92 %
Total interest-bearing liabilities$9,671,794 $216,366 2.24 %$9,025,495 $48,629 0.54 %
Non-Interest Bearing Liabilities:
Non-interest bearing deposits2,328,557 2,749,562 
Other non-interest bearing liabilities270,587 249,702 
Total non-interest bearing liabilities2,599,144 2,999,264 
Total liabilities12,270,938 12,024,759 
Stockholders' equity1,644,529 1,618,090 
Total liabilities and stockholders' equity$13,915,467 $13,642,849 
Net interest income$399,454 $417,552 
Net interest rate spread2.63 %3.22 %
Net interest-earning assets$2,965,430 $3,387,335 
Net interest margin (3)
3.16 %3.37 %
Ratio of interest-earning assets to total interest-bearing liabilities1.31x1.38x
(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.
18

The following table summarizes the year-to-date net interest margin for the previous three years.
Year Ended
December 31, 2023December 31, 2022December 31, 2021
Interest-Earning Assets:
Securities2.62 %1.86 %1.42 %
Net loans5.37 %4.26 %3.82 %
Total interest-earning assets4.87 %3.76 %3.30 %
Interest-Bearing Liabilities:
Total deposits1.99 %0.47 %0.33 %
Total borrowings3.41 %1.23 %1.09 %
Total interest-bearing liabilities2.24 %0.54 %0.41 %
Interest rate spread2.63 %3.22 %2.89 %
Net interest margin3.16 %3.37 %3.00 %
Ratio of interest-earning assets to interest-bearing liabilities1.31x1.38x1.37x




19
v3.23.4
Cover Page
Jan. 25, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jan. 25, 2024
Entity Registrant Name PROVIDENT FINANCIAL SERVICES, INC.
Entity Incorporation, State or Country Code DE
Entity File Number 001-31566
Entity Tax Identification Number 42-1547151
Entity Address, Address Line One 239 Washington Street
Entity Address, City or Town Jersey City
Entity Address, State or Province NJ
Entity Address, Postal Zip Code 07302
City Area Code 732
Local Phone Number 590-9200
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common
Trading Symbol PFS
Security Exchange Name NYSE
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0001178970
Provident Financial Serv... (NYSE:PFS)
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