Provident Financial Services, Inc. (NYSE:PFS) (the “Company”)
reported net income of $48.5 million, or $0.37 per basic and
diluted share for the three months ended December 31, 2024,
compared to $46.4 million, or $0.36 per basic and diluted share,
for the three months ended September 30, 2024 and $27.3 million, or
$0.36 per basic and diluted share, for the three months ended
December 31, 2023. For the year ended December 31, 2024, net income
totaled $115.5 million, or $1.05 per basic and diluted share,
compared to $128.4 million, or $1.72 per basic and $1.71 per
diluted share, for the year ended December 31, 2023.
The Company’s earnings for the three months and
year ended December 31, 2024 reflect the impact of the May 16, 2024
merger with Lakeland Bancorp, Inc. (“Lakeland”), which added $10.91
billion to total assets, $7.91 billion to loans, and $8.62 billion
to deposits, net of purchase accounting adjustments. The merger
with Lakeland significantly impacted provisions for credit losses
in 2024 due to the initial Current Expected Credit Loss ("CECL")
provisions recorded on acquired loans in the second quarter.
Transaction costs related to our merger with Lakeland totaled $20.2
million and $56.9 million, for the three months and year ended
December 31, 2024, respectively, compared with transaction costs of
$2.5 million and $7.8 million for the respective 2023 periods.
Additionally, the Company realized a $2.8 million loss related to
the sale of subordinated debt issued by Lakeland from the Provident
investment portfolio, during the second quarter of 2024.
Anthony J. Labozzetta, President and Chief
Executive Officer commented, “Provident had an eventful 2024 marked
by solid financial performance and defined by the completion of our
merger with Lakeland. We have maintained excellent asset quality,
grown our deposits, and benefited from our expanding fee-based
businesses. With core systems conversion and integration now
completed, we look forward to further improving our performance
across all business lines in 2025."
Performance Highlights for the Fourth
Quarter of 2024
- Adjusted for
transaction costs related to the merger with Lakeland, net of tax,
the Company's annualized adjusted returns on average assets,
average equity and average tangible equity(1) were 1.05%, 9.53% and
15.39% for the quarter ended December 31, 2024, compared to
0.95%, 8.62% and 14.53% for the quarter ended September 30,
2024. A reconciliation between GAAP and the above non-GAAP ratios
is shown on page 13 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 1.53%,
13.91% and 20.31% for the quarter ended December 31, 2024,
compared to 1.48%, 13.48% and 19.77% for the quarter ended
September 30, 2024. A reconciliation between GAAP and the
above non-GAAP ratios is shown on page 13 of the earnings
release.
- Net interest margin
decreased three basis points to 3.28% for the quarter ended
December 31, 2024, from 3.31% for the trailing quarter, mainly
due to a reduction in net accretion of purchase accounting
adjustments related to the Lakeland merger. However, the core net
interest margin, which excludes the impact of purchase accounting
accretion and amortization, increased four basis points from the
trailing quarter to 2.85%. The average yield on total loans
decreased 22 basis points to 5.99% for the quarter ended
December 31, 2024, compared to the trailing quarter, while the
average cost of deposits, including non-interest-bearing deposits,
decreased 11 basis points to 2.25% for the quarter ended
December 31, 2024.
- Wealth management
and insurance agency income increased 12% and 19%, respectively,
versus the same period in 2023.
- Asset quality
improved in the quarter, as non-performing loans to total loans as
of December 31, 2024 decreased to 0.39% from 0.47% as of
September 30, 2024, while non-performing assets to total assets as
of December 31, 2024 decreased to 0.34% from 0.41% as of
September 30, 2024.
- The Company
recorded a $7.8 million provision for credit losses on loans for
the quarter ended December 31, 2024, compared to a $9.6
million provision for the trailing quarter. The decrease in the
provision for credit losses on loans for the quarter was primarily
attributable to the reclassification of $151.3 million to the held
for sale portfolio, partially offset by modest deterioration in the
economic forecast within our CECL model.
- Total deposits
increased $247.6 million to $18.62 billion as of December 31,
2024 compared to September 30, 2024.
- In December of
2024, $151.3 million of the Bank's commercial loan portfolio was
reclassified from loans held for investment into the held for sale
portfolio as a result of a decision to exit the non-relationship
equipment lease financing business.
- As of
December 31, 2024, the Company's loan pipeline, consisting of
work-in-process and loans approved pending closing, totaled $1.79
billion, with a weighted average interest rate of 6.91%.
- At
December 31, 2024, CRE loans related to office properties
totaled $884.1 million, compared to $921.1 million at September 30,
2024. CRE loans secured by office properties constitutes 4.6% of
total loans and have an average loan size of $1.9 million, with
seven relationships greater than $10.0 million. There were four
loans totaling $9.1 million on non-accrual as of December 31,
2024.
- As of
December 31, 2024, multi-family CRE loans secured by New York
City properties totaled $244.5 million, compared to $226.6 million
as of September 30, 2024. This portfolio constitutes only 1.3%
of total loans and has an average loan size of $2.8 million. Loans
that are collateralized by rent stabilized apartments comprise less
than 0.80% of the total loan portfolio and are all performing.
Declaration of Quarterly
Dividend
The Company’s Board of Directors declared a
quarterly cash dividend of $0.24 per common share payable on
February 28, 2025, to stockholders of record as of the close of
business on February 14, 2025.
Annual Meeting Date Set
The Annual Meeting of Stockholders will be held
on April 24, 2025 at 10:00 a.m. Eastern Time as a virtual meeting.
February 28, 2025 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, 2024
compared to the three months ended September 30, 2024
For the three months ended December 31, 2024,
net income was $48.5 million, or $0.37 per basic and diluted share,
compared to net income of $46.4 million, or $0.36 per basic and
diluted share, for the three months ended September 30, 2024.
Net Interest Income and Net Interest
Margin
Net interest income decreased $2.0 million to
$181.7 million for the three months ended December 31, 2024, from
$183.7 million for the trailing quarter. The decrease in net
interest income was primarily due to a decrease in net accretion of
purchase accounting adjustments in the loan portfolio related to
the Lakeland merger.
The Company’s net interest margin decreased
three basis points to 3.28% for the quarter ended December 31,
2024, from 3.31% for the trailing quarter. The average yield on
interest-earning assets for the quarter ended December 31,
2024 decreased 18 basis points to 5.66%, compared to the trailing
quarter. The average cost of interest-bearing liabilities for the
quarter ended December 31, 2024 decreased 16 basis points to
3.03%, compared to the trailing quarter. The average cost of
interest-bearing deposits for the quarter ended December 31,
2024 decreased 15 basis points to 2.81%, compared to 2.96% for the
trailing quarter. The average cost of total deposits, including
non-interest-bearing deposits, was 2.25% for the quarter ended
December 31, 2024, compared to 2.36% for the trailing quarter.
The average cost of borrowed funds for the quarter ended
December 31, 2024 was 3.64%, compared to 3.73% for the quarter
ended September 30, 2024. The net accretion of purchase
accounting adjustments contributed 43 basis points to the net
interest margin for the quarter ended December 31, 2024,
compared with 50 basis points in the trailing quarter. The
reduction in purchase accounting accretion was largely due to the
prepayment of certain loans that resulted in accelerated
amortization of acquisition premiums and a decrease in accelerated
accretion related to prepayments of loans with acquisition
discounts.
Provision for Credit Losses on
Loans
For the quarter ended December 31, 2024,
the Company recorded a $7.8 million provision for credit losses
related to loans, compared with a provision for credit losses on
loans of $9.6 million for the quarter ended September 30,
2024. The decrease in the provision for credit losses on loans for
the quarter was primarily attributable to the reclassification of
$151.3 million of commercial loans to the held for sale portfolio,
partially offset by modest deterioration in the economic forecast
within our CECL model for the current quarter as compared to the
prior quarter. For the three months ended December 31, 2024, net
charge-offs totaled $5.5 million, or an annualized 12 basis points
of average loans, compared to net charge-offs of $6.8 million, or
an annualized 14 basis points of average loans for the trailing
quarter.
Non-Interest Income and
Expense
For the three months ended December 31,
2024, non-interest income totaled $24.2 million, a decrease of $2.7
million, compared to the trailing quarter. Bank owned life
insurance ("BOLI") income decreased $2.0 million compared to the
trailing quarter, to $2.3 million for the three months ended
December 31, 2024, primarily due to a reduction in benefit
claims. Insurance agency income decreased $342,000 to $3.3 million
for the three months ended December 31, 2024, compared to $3.6
million for the trailing quarter, largely due to a seasonal
decrease in business activity. Additionally, other income decreased
$181,000 to $1.3 million for the three months ended
December 31, 2024, compared to the trailing quarter, while
fees and commissions decreased $129,000 to $9.7 million for the
three months ended December 31, 2024, compared to the trailing
quarter.
Non-interest expense totaled $134.3 million for
the three months ended December 31, 2024, a decrease of $1.7
million, compared to $136.0 million for the trailing quarter.
Compensation and benefits expense decreased $3.5 million to $59.9
million for the three months ended December 31, 2024, compared
to $63.5 million for the trailing quarter mainly due to decreases
in salary expense and payroll tax expense. Amortization of
intangibles decreased $2.7 million to $9.5 million for the three
months ended December 31, 2024 primarily due to a current
quarter adjustment to the rate of core deposit intangible
amortization related to Lakeland, as a result of lower projected
attrition on core deposits. FDIC insurance decreased $769,000 to
$3.4 million for the three months ended December 31, 2024,
compared to $4.2 million for the trailing quarter, primarily due to
a decreases in the assessment rate and average assets.
Additionally, data processing expense decreased $600,000 to $9.9
million for the three months ended December 31, 2024, compared
to the trailing quarter, largely due to a decrease in core system
expenses. Partially offsetting these decreases, merger-related
expenses increased $4.6 million to $20.2 million for the three
months ended December 31, 2024, compared to the trailing quarter,
while other operating expenses increased $1.6 million to $17.4
million for the three months ended December 31, 2024, compared
to the trailing quarter largely due to a $1.4 million charge for
contingent litigation reserves.
The Company’s annualized adjusted non-interest
expense as a percentage of average assets(4) was 1.90% for the
quarter ended December 31, 2024, compared to 1.98% for the
trailing quarter. The efficiency ratio (adjusted non-interest
expense divided by the sum of net interest income and non-interest
income)(5) was 55.43% for the three months ended December 31,
2024, compared to 57.20% for the trailing quarter.
Income Tax Expense
For the three months ended December 31,
2024, the Company's income tax expense was $14.2 million with an
effective tax rate of 22.6%, compared with income tax expense of
$18.9 million with an effective tax rate of 28.9% for the trailing
quarter. The decrease in tax expense and the effective tax rate for
the three months ended December 31, 2024, compared with the
trailing quarter was largely due to a $4.2 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.
Three months ended December 31, 2024
compared to the three months ended December 31, 2023
For the three months ended December 31,
2024, net income was $48.5 million, or $0.37 per basic and diluted
share, compared to net income of $27.3 million, or $0.36 per basic
and diluted share, for the three months ended December 31, 2023.
The Company’s earnings for the quarter ended December 31, 2024
reflected the impact of the May 16, 2024 merger with Lakeland. The
results of operations included transaction costs related to the
merger with Lakeland totaling $20.2 million and $2.5 million for
the three months ended December 31, 2024 and 2023,
respectively.
Net Interest Income and Net Interest
Margin
Net interest income increased $85.9 million to
$181.7 million for the three months ended December 31, 2024,
from $95.8 million for same period in 2023. Net interest income for
the quarter ended December 31, 2024 compared to the same
period in 2023 was favorably impacted by the net assets acquired
from Lakeland, combined with favorable repricing of adjustable rate
loans, higher market rates on new loan originations and the
originations of higher-yielding loans, partially offset by
unfavorable repricing of deposits.
The Company’s net interest margin increased 36
basis points to 3.28% for the quarter ended December 31, 2024,
from 2.92% for the same period last year. The average yield on
interest-earning assets for the quarter ended December 31,
2024 increased 62 basis points to 5.66%, compared to 5.04% for the
quarter ended December 31, 2023. The average cost of
interest-bearing liabilities increased 32 basis points for the
quarter ended December 31, 2024 to 3.03%, compared to 2.71%
for the fourth quarter of 2023. The average cost of
interest-bearing deposits for the quarter ended December 31,
2024 was 2.81%, compared to 2.47% for the same period last year.
The average cost of total deposits, including non-interest-bearing
deposits, was 2.25% for the quarter ended December 31, 2024,
compared with 1.95% for the quarter ended December 31, 2023.
The average cost of borrowed funds for the quarter ended
December 31, 2024 was 3.64%, compared to 3.71% for the same
period last year.
Provision for Credit Losses on
Loans
For the quarter ended December 31, 2024,
the Company recorded a $7.8 million provision for credit losses
related to loans, compared with a $500,000 provision for credit
losses on loans for the quarter ended December 31, 2023. The
increase in the provision for credit losses on loans was largely a
function of the period-over-period deterioration in the economic
forecast and an increase in loans from the Lakeland
acquisition.
Non-Interest Income and
Expense
Non-interest income totaled $24.2 million for
the quarter ended December 31, 2024, an increase of $5.2
million, compared to the same period in 2023. Fee income increased
$3.6 million to $9.7 million for the three months ended
December 31, 2024, compared to the same period in 2023,
primarily resulting from the Lakeland merger. Wealth management
income increased $812,000 to $7.7 million for the three months
ended December 31, 2024, compared to the same period in 2023,
primarily due to an increase in the average market value of assets
under management, while BOLI income increased $617,000 to $2.3
million for the three months ended December 31, 2024, compared
to the same period in 2023 largely due to an increase in income
related to the addition of Lakeland's BOLI. Insurance agency income
increased $530,000 to $3.3 million, for the three months ended
December 31, 2024, compared to the same period in 2023,
largely due to strong retention revenue and new business activity.
Partially offsetting these increases to non-interest income, other
income decreased $330,000 to $1.3 million for the three months
ended December 31, 2024, compared to the quarter ended
December 31, 2023, primarily due to a decrease in net gains on
the sale of SBA loans.
Non-interest expense totaled $134.3 million for
the three months ended December 31, 2024, an increase of $58.5
million, compared to $75.9 million for the three months ended
December 31, 2023. Compensation and benefits expense increased
$21.2 million to $59.9 million for three months ended December 31,
2024, compared to $38.8 million for the same period in 2023. The
increase in compensation and benefits expense was primarily
attributable to the addition of Lakeland. Additionally,
merger-related expense increased $17.7 million to $20.2 million for
the three months ended December 31, 2024, compared to the same
period in 2023. Amortization of intangibles increased $8.8 million
to $9.5 million for the three months ended December 31, 2024,
compared to $721,000 for the same period in 2023, largely due to
core deposit intangible amortization related to the addition of
Lakeland. Net occupancy expenses increased $4.8 million to $12.6
million for the three months ended December 31, 2024, compared
to the same period in 2023, primarily due to an increase in
depreciation and maintenance expenses related to the addition of
Lakeland. Data processing expense increased $3.4 million to $9.9
million for the three months ended December 31, 2024, compared
to the same period in 2023, largely due to additional software and
hardware expenses related to the addition of Lakeland, while other
operating expenses increased $1.7 million to $17.4 million for the
three months ended December 31, 2024, compared to the same
period in 2023, largely due to an increase in professional service
expenses.
The Company’s annualized adjusted non-interest
expense as a percentage of average assets(4) was 1.90% for the
quarter ended December 31, 2024, compared to 1.98% for the
same period in 2023. The efficiency ratio (adjusted non-interest
expense divided by the sum of net interest income and non-interest
income)(5) was 55.43% for the three months ended December 31, 2024
compared to 61.32% for the same respective period in 2023.
Income Tax Expense
For the three months ended December 31, 2024,
the Company's income tax expense was $14.2 million with an
effective tax rate of 22.6%, compared with $12.5 million with an
effective tax rate of 31.3% for the three months ended December 31,
2023. The increase in tax expense for the three months ended
December 31, 2024, compared with the three months ended December
31, 2023, was primarily due to an increase in taxable income, which
was partially offset by a $4.2 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 decrease in the effective tax rate for the
three months ended December 31, 2024, compared with the three
months ended December 31, 2023 was primarily due to the
aforementioned $4.2 million tax benefit related to the revaluation
of deferred tax assets.
Year ended
December 31, 2024 compared to the
year ended December 31, 2023
For the year ended December 31, 2024, net
income totaled $115.5 million, or $1.05 per basic and diluted
share, compared to net income of $128.4 million, or $1.71 per basic
and diluted share, for the year ended December 31, 2023.
Net Interest Income and Net Interest
Margin
Net interest income increased $201.2 million to
$600.6 million for the year ended December 31, 2024, from
$399.5 million for 2023. Net interest income for the year ended
December 31, 2024 was favorably impacted by the net assets
acquired from Lakeland, combined with the favorable repricing of
adjustable rate loans and higher market rates on new loan
originations, partially offset by the unfavorable repricing of both
deposits and borrowings.
For the year ended December 31, 2024, the
net interest margin increased 10 basis points to 3.26%, compared to
3.16% for 2023. The weighted average yield on interest earning
assets increased 81 basis points to 5.68% for the year ended
December 31, 2024, compared to 4.87% for 2023, while the
weighted average cost of interest-bearing liabilities increased 81
basis points to 3.05% for the year ended December 31, 2024,
compared to 2.24% last year. The average cost of interest-bearing
deposits increased 84 basis points to 2.83% for the year ended
December 31, 2024, compared to 1.99% in the prior year.
Average non-interest-bearing demand deposits increased $792.0
million to $3.12 billion for the year ended December 31, 2024,
compared with $2.33 billion for 2023. The average cost of total
deposits, including non-interest-bearing deposits, was 2.26% for
the year ended December 31, 2024, compared with 1.54% for
2023. The average cost of borrowings for the year ended
December 31, 2024 was 3.71%, compared to 3.41% in the prior
year.
Provision for Credit Losses on
Loans
For the year ended December 31, 2024, the
Company recorded an $83.6 million provision for credit losses
related to loans, compared with a provision for credit losses of
$28.2 million for 2023. The increased provision for credit losses
on loans for the year ended December 31, 2024 was primarily
attributable to an initial CECL provision for credit losses on
loans of $60.1 million recorded as part of the Lakeland merger in
accordance with GAAP requirements for accounting for business
combinations, partially offset by some economic forecast
improvement over the current twelve-month period within our CECL
model, compared to last year.
Non-Interest Income and
Expense
For the year ended December 31, 2024,
non-interest income totaled $94.1 million, an increase of $14.3
million, compared to 2023. Fee income increased $9.7 million to
$34.1 million for the year ended December 31, 2024, compared
to 2023, primarily due to the addition of Lakeland. BOLI income
increased $5.2 million to $11.7 million for the year ended
December 31, 2024, compared to 2023, primarily due to an
increase in benefit claims, combined with an increase in income
related to the addition of Lakeland's BOLI, while wealth management
income increased $2.9 million to $30.5 million for the year ended
December 31, 2024, compared to 2023, mainly due to an increase
in the average market value of assets under management during the
period. Additionally, insurance agency income increased $2.3
million to $16.2 million for the year ended December 31, 2024,
compared to $13.9 million for 2023, largely due to increases in
contingent commissions, retention revenue and new business
activity. Partially offsetting these increases in non-interest
income, net gains on securities transactions decreased $3.0 million
for the year ended December 31, 2024, primarily due to a $2.8
million loss related to the sale from the Provident investment
portfolio of subordinated debt issued by Lakeland. Additionally,
other income decreased $2.8 million to $4.5 million for the year
ended December 31, 2024, compared to $7.3 million for 2023,
primarily due to a $2.0 million gain from the sale of a foreclosed
commercial property recorded in the prior year, combined with a
decrease in gains on sales of SBA loans in the current year.
Non-interest expense totaled $457.5 million for
the year ended December 31, 2024, an increase of $182.2
million, compared to $275.3 million for 2023. Compensation and
benefits expense increased $69.8 million to $218.3 million for the
year ended December 31, 2024, compared to $148.5 million for
2023. The increase in compensation and benefits expense was
primarily attributable to the addition of Lakeland. Merger-related
expenses increased $49.0 million to $56.9 million for the year
ended December 31, 2024, compared to $7.8 million for 2023.
Amortization of intangibles increased $26.0 million to $28.9
million for the year ended December 31, 2024, compared to $3.0
million for 2023, largely due to core deposit intangible
amortization related to the addition of Lakeland. Net occupancy
expense increased $12.7 million to $45.0 million for the year ended
December 31, 2024, compared to 2023, primarily due to
increases in depreciation and maintenance expense related to the
addition of Lakeland, while data processing expense increased $12.6
million to $35.6 million for the year ended December 31, 2024,
compared to $23.0 million for 2023, primarily due to additional
software and hardware expenses related to the addition of Lakeland.
Other operating expenses increased $7.3 million to $54.7 million
for the year ended December 31, 2024, compared to $47.4
million for 2023, primarily due to increases in consulting and
other professional service expenses, while FDIC insurance increased
$4.4 million to $13.0 million for the year ended December 31,
2024, primarily due to the addition of Lakeland.
Income Tax Expense
For the year ended December 31, 2024, the
Company's income tax expense was $34.1 million with an effective
tax rate of 22.8%, compared with $47.4 million with an effective
tax rate of 27.0% for 2023. The decrease in tax expense for the
year ended December 31, 2024, compared with last year was
largely due to a $10.0 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, combined with a decrease in taxable income as a
result of the initial CECL provision for credit losses on loans of
$60.1 million recorded in accordance with GAAP requirements for
accounting for business combinations and additional expenses from
the Lakeland merger.
Asset Quality
The Company’s total non-performing loans at
December 31, 2024 were $72.1 million, or 0.39% of total loans,
compared to $89.9 million or 0.47% of total loans at
September 30, 2024 and $49.6 million, or 0.46% of total loans
at December 31, 2023. The $17.9 million decrease in
non-performing loans at December 31, 2024, compared to the
trailing quarter, consisted of a $24.3 million decrease in
non-performing commercial loans and a $676,000 decrease in
non-performing residential loans, partially offset by a $6.9
million increase in non-performing commercial mortgage loans and a
$223,000 increase in non-performing consumer loans. As of
December 31, 2024, impaired loans totaled $55.4 million with
related specific reserves of $7.5 million, compared with impaired
loans totaling $74.0 million with related specific reserves of $7.2
million as of September 30, 2024. As of December 31,
2023, impaired loans totaled $42.3 million with related specific
reserves of $2.9 million.
At December 31, 2024, the Company’s
allowance for credit losses related to the loan portfolio was 1.04%
of total loans, compared to 1.02% and 0.99% at September 30,
2024 and December 31, 2023, respectively. The allowance for
credit losses increased $88.0 million to $193.4 million at
December 31, 2024, from $107.2 million at December 31,
2023. The increase in the allowance for credit losses on loans at
December 31, 2024 compared to December 31, 2023 was due
to an $83.6 million provision for credit losses on loans, which
included an initial CECL provision of $60.1 million on loans
acquired from Lakeland, and a $17.2 million allowance recorded
through goodwill related to Purchased Credit Deteriorated loans
acquired from Lakeland, partially offset by net charge-offs of
$14.6 million.
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, 2024 |
|
September 30, 2024 |
|
December 31, 2023 |
|
| |
|
NumberofLoans |
|
PrincipalBalanceof
Loans |
|
NumberofLoans |
|
PrincipalBalanceof
Loans |
|
NumberofLoans |
|
PrincipalBalanceof
Loans |
|
| |
|
(Dollars in thousands) |
| Accruing past due
loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 30 to 59 days past due: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial mortgage loans |
|
7 |
|
$ |
8,538 |
|
|
2 |
|
$ |
430 |
|
|
1 |
|
$ |
825 |
|
|
|
Multi-family mortgage loans |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
3,815 |
|
|
|
Construction loans |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
Residential mortgage loans |
|
22 |
|
|
6,388 |
|
|
23 |
|
|
5,020 |
|
|
13 |
|
|
3,429 |
|
|
|
Total mortgage loans |
|
29 |
|
|
14,926 |
|
|
25 |
|
|
5,450 |
|
|
15 |
|
|
8,069 |
|
|
|
Commercial loans |
|
23 |
|
|
4,248 |
|
|
14 |
|
|
1,952 |
|
|
6 |
|
|
998 |
|
|
|
Consumer loans |
|
47 |
|
|
3,152 |
|
|
53 |
|
|
4,073 |
|
|
31 |
|
|
875 |
|
|
|
Total 30 to 59 days past due |
|
99 |
|
$ |
22,326 |
|
|
92 |
|
$ |
11,475 |
|
|
52 |
|
$ |
9,942 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 60 to 89 days past due: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial mortgage loans |
|
4 |
|
$ |
3,954 |
|
|
1 |
|
$ |
641 |
|
|
— |
|
$ |
— |
|
|
|
Multi-family mortgage loans |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
1,635 |
|
|
|
Construction loans |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
Residential mortgage loans |
|
17 |
|
|
5,049 |
|
|
11 |
|
|
1,991 |
|
|
8 |
|
|
1,208 |
|
|
|
Total mortgage loans |
|
21 |
|
|
9,003 |
|
|
12 |
|
|
2,632 |
|
|
9 |
|
|
2,843 |
|
|
|
Commercial loans |
|
9 |
|
|
2,377 |
|
|
9 |
|
|
1,240 |
|
|
3 |
|
|
198 |
|
|
|
Consumer loans |
|
15 |
|
|
856 |
|
|
10 |
|
|
606 |
|
|
5 |
|
|
275 |
|
|
|
Total 60 to 89 days past due |
|
45 |
|
|
12,236 |
|
|
31 |
|
|
4,478 |
|
|
17 |
|
|
3,316 |
|
|
|
Total accruing past due loans |
|
144 |
|
$ |
34,562 |
|
|
123 |
|
$ |
15,953 |
|
|
69 |
|
$ |
13,258 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial mortgage loans |
|
17 |
|
$ |
20,883 |
|
|
17 |
|
$ |
13,969 |
|
|
7 |
|
$ |
5,151 |
|
|
|
Multi-family mortgage loans |
|
6 |
|
|
7,498 |
|
|
6 |
|
|
7,578 |
|
|
1 |
|
|
744 |
|
|
|
Construction loans |
|
2 |
|
|
13,246 |
|
|
2 |
|
|
13,151 |
|
|
1 |
|
|
771 |
|
|
|
Residential mortgage loans |
|
23 |
|
|
4,535 |
|
|
24 |
|
|
5,211 |
|
|
7 |
|
|
853 |
|
|
|
Total mortgage loans |
|
48 |
|
|
46,162 |
|
|
49 |
|
|
39,909 |
|
|
16 |
|
|
7,519 |
|
|
|
Commercial loans |
|
65 |
|
|
24,243 |
|
|
69 |
|
|
48,592 |
|
|
26 |
|
|
41,487 |
|
|
|
Consumer loans |
|
23 |
|
|
1,656 |
|
|
32 |
|
|
1,433 |
|
|
10 |
|
|
633 |
|
|
|
Total non-accrual loans |
|
136 |
|
$ |
72,061 |
|
|
150 |
|
$ |
89,934 |
|
|
52 |
|
$ |
49,639 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-performing loans to total
loans |
|
|
|
|
0.39 |
% |
|
|
|
|
0.47 |
% |
|
|
|
|
0.46 |
% |
|
| Allowance for loan losses to
total non-performing loans |
|
|
|
|
268.43 |
% |
|
|
|
|
217.09 |
% |
|
|
|
|
215.96 |
% |
|
| Allowance for loan losses to
total loans |
|
|
|
|
1.04 |
% |
|
|
|
|
1.02 |
% |
|
|
|
|
0.99 |
% |
|
| |
At December 31, 2024 and December 31,
2023, the Company held foreclosed assets of $9.5 million and $11.7
million, respectively. During the year ended December 31,
2024, there were four properties sold with an aggregate carrying
value of $861,000 and one write-down of a foreclosed commercial
property of $1.3 million. Foreclosed assets at December 31,
2024 consisted primarily of commercial real estate. Total
non-performing assets at December 31, 2024 increased $20.2
million to $81.5 million, or 0.34% of total assets, from $61.3
million, or 0.43% of total assets at December 31, 2023.
Balance Sheet Summary
Total assets at December 31, 2024 were
$24.05 billion, a $13.78 billion increase from December 31,
2023. The increase in total assets was primarily due to the
addition of Lakeland.
The Company’s loans held for investment
portfolio totaled $18.66 billion at December 31, 2024 and
$10.87 billion at December 31, 2023. The loan portfolio
consists of the following:
| |
December 31, 2024 |
|
September 30, 2024 |
|
December 31, 2023 |
|
| |
(Dollars in thousands) |
| Mortgage
loans: |
|
|
|
|
|
|
|
Commercial |
$ |
7,228,078 |
|
|
$ |
7,342,456 |
|
|
$ |
4,512,411 |
|
|
|
Multi-family |
|
3,382,933 |
|
|
|
3,226,918 |
|
|
|
1,812,500 |
|
|
|
Construction |
|
823,503 |
|
|
|
873,509 |
|
|
|
653,246 |
|
|
|
Residential |
|
2,014,844 |
|
|
|
2,032,671 |
|
|
|
1,164,956 |
|
|
|
|
Total mortgage loans |
|
13,449,358 |
|
|
|
13,475,554 |
|
|
|
8,143,113 |
|
|
| Commercial
loans |
|
4,604,367 |
|
|
|
4,710,601 |
|
|
|
2,440,621 |
|
|
| Consumer
loans |
|
613,819 |
|
|
|
623,709 |
|
|
|
299,164 |
|
|
|
|
Total gross loans |
|
18,667,544 |
|
|
|
18,809,864 |
|
|
|
10,882,898 |
|
|
| Premiums on
purchased loans |
|
1,338 |
|
|
|
1,362 |
|
|
|
1,474 |
|
|
| Net deferred fees
and unearned discounts |
|
(9,512 |
) |
|
|
(16,617 |
) |
|
|
(12,456 |
) |
|
|
|
Total loans |
$ |
18,659,370 |
|
|
$ |
18,794,609 |
|
|
$ |
10,871,916 |
|
|
|
|
As part of the merger with Lakeland, we acquired
$7.91 billion in loans, net of purchase accounting adjustments. For
the year ended December 31, 2024, the Company experienced net
increases of $1.57 billion in multi-family loans, $2.16 billion in
commercial loans and $2.72 billion in commercial mortgage loans,
partially offset by net decreases of $170.3 million in construction
loans and net decreases in residential mortgage and consumer loans
of $849.9 million and $314.7 million, respectively. Commercial
loans, consisting of commercial real estate, multi-family,
commercial and construction loans, represented 85.9% of the loan
portfolio at December 31, 2024, compared to 86.5% at
December 31, 2023.
For the year ended December 31, 2024, loan
funding, including advances on lines of credit, totaled $4.73
billion, compared with $3.34 billion for the same period in
2023.
At December 31, 2024, the Company’s
unfunded loan commitments totaled $2.73 billion, including
commitments of $1.62 billion in commercial loans, $608.1 million in
construction loans and $85.1 million in commercial mortgage loans.
Unfunded loan commitments at September 30, 2024 and
December 31, 2023 totaled $2.97 billion and $2.09 billion,
respectively.
The loan pipeline, consisting of work-in-process
and loans approved pending closing, totaled $1.79 billion at
December 31, 2024, compared to $1.98 billion at
September 30, 2024 and $1.70 billion at December 31,
2023.
Total investment securities were $3.21 billion
at December 31, 2024, a $2.26 billion increase from
December 31, 2023. This increase was primarily due to the
addition of Lakeland.
Total deposits increased $10.56 billion during
the year ended December 31, 2024, to $18.62 billion. Total
savings and demand deposit accounts increased $6.26 billion to
$15.46 billion at December 31, 2024, while total time deposits
increased $2.07 billion to $3.17 billion at December 31, 2024.
The increase in savings and demand deposits was largely
attributable to a $3.13 billion increase in interest-bearing demand
deposits, a $1.59 billion increase in non-interest-bearing demand
deposits, a $1.04 billion increase in money market deposits and a
$504.0 million increase in savings deposits. The increase in time
deposits consisted of a $1.98 billion increase in retail time
deposits and a $91.1 million increase in brokered time
deposits.
Borrowed funds increased $1.34 billion during
the year ended December 31, 2024, to $2.02 billion. The
increase in borrowings was largely due to the addition of Lakeland.
Borrowed funds represented 8.4% of total assets at
December 31, 2024, an decrease from 13.9% at December 31,
2023.
Stockholders’ equity increased $1.60 billion
during the year ended December 31, 2024, to $2.60 billion,
primarily due to common stock issued for the purchase of Lakeland,
net income earned for the period and a slight improvement in
unrealized losses on available for sale debt securities, partially
offset by cash dividends paid to stockholders. For the year ended
December 31, 2024, common stock repurchases totaled 89,569
shares at an average cost of $14.90 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, 2024,
approximately 3.1 million shares remained eligible for repurchase
under the current stock repurchase authorization. Book value per
share and tangible book value per share(6) at December 31,
2024 were $19.93 and $13.66, respectively, compared with $22.38 and
$16.32, respectively, at December 31, 2023.
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 Wednesday, January 29, 2025 at
10:00 a.m. Eastern Time to discuss the Company’s financial results
for the quarter and year ended December 31, 2024. 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, inflation and unemployment, competitive products and
pricing, real estate values, fiscal and monetary policies of the
U.S. Government, 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, 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; the possibility that the
transaction may be more expensive to complete than anticipated,
including as a result of unexpected conditions, factors or events;
potential adverse reactions or changes to business, employee,
customer and/or counterparty 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.
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.
|
PROVIDENT FINANCIAL SERVICES, INC. AND
SUBSIDIARY |
|
Consolidated Financial Highlights |
|
(Dollars in Thousands, except share data) (Unaudited) |
| |
| |
At or for theThree months
ended |
|
At or for theYear ended |
| |
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Statement of
Income |
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
181,737 |
|
|
$ |
183,701 |
|
|
$ |
95,788 |
|
|
$ |
600,614 |
|
|
$ |
399,454 |
|
|
Provision for credit losses |
|
8,880 |
|
|
|
9,299 |
|
|
|
(863 |
) |
|
|
87,564 |
|
|
|
28,168 |
|
|
Non-interest income |
|
24,175 |
|
|
|
26,855 |
|
|
|
18,968 |
|
|
|
94,113 |
|
|
|
79,829 |
|
|
Non-interest expense |
|
134,323 |
|
|
|
136,002 |
|
|
|
75,851 |
|
|
|
457,548 |
|
|
|
275,336 |
|
|
Income before income tax expense |
|
62,709 |
|
|
|
65,255 |
|
|
|
39,768 |
|
|
|
149,615 |
|
|
|
175,779 |
|
|
Net income |
|
48,524 |
|
|
|
46,405 |
|
|
|
27,312 |
|
|
|
115,525 |
|
|
|
128,398 |
|
|
Diluted earnings per share |
$ |
0.37 |
|
|
$ |
0.36 |
|
|
$ |
0.36 |
|
|
$ |
1.05 |
|
|
$ |
1.71 |
|
|
Interest rate spread |
|
2.63 |
% |
|
|
2.65 |
% |
|
|
2.33 |
% |
|
|
2.63 |
% |
|
|
2.63 |
% |
|
Net interest margin |
|
3.28 |
% |
|
|
3.31 |
% |
|
|
2.92 |
% |
|
|
3.26 |
% |
|
|
3.16 |
% |
| |
|
|
|
|
|
|
|
|
|
|
Profitability |
|
|
|
|
|
|
|
|
|
|
Annualized return on average assets |
|
0.81 |
% |
|
|
0.76 |
% |
|
|
0.77 |
% |
|
|
0.57 |
% |
|
|
0.92 |
% |
|
Annualized adjusted return on average assets (1) |
|
1.05 |
% |
|
|
0.95 |
% |
|
|
0.83 |
% |
|
|
0.78 |
% |
|
|
0.97 |
% |
|
Annualized return on average equity |
|
7.36 |
% |
|
|
6.94 |
% |
|
|
6.60 |
% |
|
|
5.07 |
% |
|
|
7.81 |
% |
|
Annualized adjusted return on average equity (1) |
|
9.53 |
% |
|
|
8.62 |
% |
|
|
7.10 |
% |
|
|
6.95 |
% |
|
|
8.22 |
% |
|
Annualized return on average tangible equity (3) |
|
12.21 |
% |
|
|
12.06 |
% |
|
|
9.32 |
% |
|
|
8.58 |
% |
|
|
11.01 |
% |
|
Annualized adjusted return on average tangible equity (1) |
|
15.39 |
% |
|
|
14.53 |
% |
|
|
9.99 |
% |
|
|
11.29 |
% |
|
|
11.54 |
% |
|
Annualized adjusted non-interest expense to average assets (4) |
|
1.90 |
% |
|
|
1.98 |
% |
|
|
1.98 |
% |
|
|
1.97 |
% |
|
|
1.90 |
% |
|
Efficiency ratio (4) |
|
55.43 |
% |
|
|
57.20 |
% |
|
|
61.32 |
% |
|
|
57.67 |
% |
|
|
55.19 |
% |
| |
|
|
|
|
|
|
|
|
|
| Asset
Quality |
|
|
|
|
|
|
|
|
|
|
Non-accrual loans |
|
|
$ |
89,934 |
|
|
|
|
$ |
72,061 |
|
|
$ |
49,639 |
|
|
90+ and still accruing |
|
|
|
— |
|
|
|
|
|
— |
|
|
|
— |
|
|
Non-performing loans |
|
|
|
88,061 |
|
|
|
|
|
72,061 |
|
|
|
49,639 |
|
|
Foreclosed assets |
|
|
|
9,801 |
|
|
|
|
|
9,473 |
|
|
|
11,651 |
|
|
Non-performing assets |
|
|
|
97,862 |
|
|
|
|
|
81,534 |
|
|
|
61,290 |
|
|
Non-performing loans to total loans |
|
|
|
0.47 |
% |
|
|
|
|
0.39 |
% |
|
|
0.46 |
% |
|
Non-performing assets to total assets |
|
|
|
0.41 |
% |
|
|
|
|
0.34 |
% |
|
|
0.43 |
% |
|
Allowance for loan losses |
|
|
$ |
191,175 |
|
|
|
|
$ |
193,432 |
|
|
$ |
107,200 |
|
|
Allowance for loan losses to total non-performing loans |
|
|
|
217.09 |
% |
|
|
|
|
268.43 |
% |
|
|
215.96 |
% |
|
Allowance for loan losses to total loans |
|
|
|
1.02 |
% |
|
|
|
|
1.04 |
% |
|
|
0.99 |
% |
|
Net loan charge-offs |
$ |
5,493 |
|
|
|
6,756 |
|
|
$ |
4,010 |
|
|
$ |
14,560 |
|
|
$ |
8,129 |
|
|
Annualized net loan charge offs to average total loans |
|
0.12 |
% |
|
|
0.14 |
% |
|
|
0.16 |
% |
|
|
0.09 |
% |
|
|
0.08 |
% |
| |
|
|
|
|
|
|
|
|
|
| Average Balance Sheet
Data |
|
|
|
|
|
|
|
|
|
|
Assets |
$ |
23,908,514 |
|
|
$ |
24,248,038 |
|
|
$ |
14,114,626 |
|
|
$ |
20,382,148 |
|
|
$ |
13,915,467 |
|
|
Loans, net |
|
18,487,443 |
|
|
|
18,531,939 |
|
|
|
10,660,201 |
|
|
|
15,600,431 |
|
|
|
10,367,620 |
|
|
Earning assets |
|
21,760,458 |
|
|
|
21,809,226 |
|
|
|
12,823,541 |
|
|
|
18,403,149 |
|
|
|
12,637,224 |
|
|
Savings and demand deposits |
|
15,581,608 |
|
|
|
15,394,715 |
|
|
|
9,210,315 |
|
|
|
13,103,803 |
|
|
|
9,358,290 |
|
|
Borrowings |
|
1,711,806 |
|
|
|
2,125,149 |
|
|
|
1,873,822 |
|
|
|
1,983,674 |
|
|
|
1,636,572 |
|
|
Interest-bearing liabilities |
|
17,093,382 |
|
|
|
17,304,569 |
|
|
|
10,020,726 |
|
|
|
14,596,325 |
|
|
|
9,671,794 |
|
|
Stockholders' equity |
|
2,624,019 |
|
|
|
2,660,470 |
|
|
|
1,642,854 |
|
|
|
2,279,525 |
|
|
|
1,644,529 |
|
|
Average yield on interest-earning assets |
|
5.66 |
% |
|
|
5.84 |
% |
|
|
5.04 |
% |
|
|
5.68 |
% |
|
|
4.87 |
% |
|
Average cost of interest-bearing liabilities |
|
3.03 |
% |
|
|
3.19 |
% |
|
|
2.71 |
% |
|
|
3.05 |
% |
|
|
2.24 |
% |
| |
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 |
|
Year Ended |
| |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
| |
|
2024 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Net Income |
|
$ |
48,524 |
|
|
$ |
46,405 |
|
|
$ |
27,312 |
|
|
$ |
115,525 |
|
|
$ |
128,398 |
|
|
Merger-related transaction costs |
|
|
20,184 |
|
|
|
15,567 |
|
|
|
2,477 |
|
|
|
56,867 |
|
|
|
7,826 |
|
|
Less: income tax expense |
|
|
(5,819 |
) |
|
|
(4,306 |
) |
|
|
(465 |
) |
|
|
(14,010 |
) |
|
|
(1,480 |
) |
|
Annualized adjusted net income |
|
$ |
62,889 |
|
|
$ |
57,666 |
|
|
$ |
29,324 |
|
|
$ |
158,382 |
|
|
$ |
134,744 |
|
|
Less: Amortization of Intangibles (net of tax) |
|
$ |
6,649 |
|
|
$ |
8,551 |
|
|
$ |
504 |
|
|
$ |
20,226 |
|
|
$ |
2,064 |
|
|
Annualized adjusted net income for annualized adjusted return on
average tangible equity |
|
$ |
69,538 |
|
|
$ |
66,216 |
|
|
$ |
29,828 |
|
|
$ |
178,607 |
|
|
$ |
136,808 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized Adjusted Return on Average Assets |
|
|
1.05 |
% |
|
|
0.95 |
% |
|
|
0.83 |
% |
|
|
0.78 |
% |
|
|
0.97 |
% |
|
Annualized Adjusted Return on Average Equity |
|
|
9.53 |
% |
|
|
8.62 |
% |
|
|
7.10 |
% |
|
|
6.95 |
% |
|
|
8.22 |
% |
|
Annualized Adjusted Return on Average Tangible Equity |
|
|
15.39 |
% |
|
|
14.53 |
% |
|
|
9.99 |
% |
|
|
11.29 |
% |
|
|
11.54 |
% |
| |
|
|
|
|
|
|
|
|
|
|
| (2) Annualized
adjusted pre-tax, pre-provision ("PTPP") returns on average assets,
average equity and average tangible equity |
|
| |
|
Three Months Ended |
|
Year Ended |
| |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
| |
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Net income |
|
$ |
48,524 |
|
|
$ |
46,405 |
|
|
$ |
27,312 |
|
|
$ |
115,525 |
|
|
$ |
128,398 |
|
|
Adjustments to net income: |
|
|
|
|
|
|
|
|
|
|
|
Provision charge (benefit) for credit losses |
|
|
8,880 |
|
|
|
9,299 |
|
|
|
(863 |
) |
|
|
87,564 |
|
|
|
28,168 |
|
|
Net loss on Lakeland bond sale |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,839 |
|
|
|
— |
|
|
Merger-related transaction costs |
|
|
20,184 |
|
|
|
15,567 |
|
|
|
2,477 |
|
|
|
56,867 |
|
|
|
7,826 |
|
|
Contingent litigation reserves |
|
|
— |
|
|
|
— |
|
|
|
3,000 |
|
|
|
— |
|
|
|
3,000 |
|
|
Income tax expense |
|
|
14,185 |
|
|
|
18,850 |
|
|
|
12,456 |
|
|
|
34,090 |
|
|
|
47,381 |
|
|
Adjusted PTPP income |
|
$ |
91,773 |
|
|
$ |
90,121 |
|
|
$ |
44,382 |
|
|
$ |
296,885 |
|
|
$ |
214,773 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Annualized Adjusted PTPP income |
|
$ |
365,097 |
|
|
$ |
358,525 |
|
|
$ |
176,081 |
|
|
$ |
296,885 |
|
|
$ |
214,773 |
|
|
Average assets |
|
$ |
23,908,514 |
|
|
$ |
24,248,038 |
|
|
$ |
14,114,626 |
|
|
$ |
20,382,148 |
|
|
$ |
13,915,467 |
|
|
Average equity |
|
$ |
2,624,019 |
|
|
$ |
2,660,470 |
|
|
$ |
1,642,854 |
|
|
$ |
2,279,525 |
|
|
$ |
1,644,529 |
|
|
Average tangible equity |
|
$ |
1,797,994 |
|
|
$ |
1,813,327 |
|
|
$ |
1,184,444 |
|
|
$ |
1,581,339 |
|
|
$ |
1,185,026 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Annualized Adjusted PTPP return on average assets |
|
|
1.53 |
% |
|
|
1.48 |
% |
|
|
1.25 |
% |
|
|
1.46 |
% |
|
|
1.54 |
% |
|
Annualized PTPP return on average equity |
|
|
13.91 |
% |
|
|
13.48 |
% |
|
|
10.72 |
% |
|
|
13.02 |
% |
|
|
13.06 |
% |
|
Annualized PTPP return on average tangible equity |
|
|
20.31 |
% |
|
|
19.77 |
% |
|
|
14.87 |
% |
|
|
18.77 |
% |
|
|
18.12 |
% |
| |
|
|
|
|
|
|
|
|
|
|
| (3) Annualized Return
on Average Tangible Equity |
|
| |
|
Three Months Ended |
|
Year Ended |
| |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
| |
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Total average stockholders' equity |
|
$ |
2,624,019 |
|
|
$ |
2,660,470 |
|
|
$ |
1,642,854 |
|
|
$ |
2,279,525 |
|
|
$ |
1,644,529 |
|
|
Less: total average intangible assets |
|
|
826,025 |
|
|
|
847,143 |
|
|
|
458,410 |
|
|
|
698,186 |
|
|
|
459,503 |
|
|
Total average tangible stockholders' equity |
|
$ |
1,797,994 |
|
|
$ |
1,813,327 |
|
|
$ |
1,184,444 |
|
|
$ |
1,581,339 |
|
|
$ |
1,185,026 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
48,524 |
|
|
$ |
46,405 |
|
|
$ |
27,312 |
|
|
$ |
115,525 |
|
|
$ |
128,398 |
|
|
Less: Amortization of Intangibles, net of tax |
|
|
6,649 |
|
|
|
8,551 |
|
|
|
504 |
|
|
|
20,226 |
|
|
|
2,064 |
|
|
Total net income (loss) |
|
$ |
55,173 |
|
|
$ |
54,956 |
|
|
$ |
27,816 |
|
|
$ |
135,751 |
|
|
$ |
130,462 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Annualized return on average tangible equity (net income/total
average tangible stockholders' equity) |
|
|
12.21 |
% |
|
|
12.06 |
% |
|
|
9.32 |
% |
|
|
8.58 |
% |
|
|
11.01 |
% |
| |
|
|
|
|
|
|
|
|
|
|
| (4) Annualized
Adjusted Non-Interest Expense to Average Assets |
|
| |
|
Three Months Ended |
|
Year Ended |
| |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
| |
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Reported non-interest expense |
|
$ |
134,323 |
|
|
$ |
136,002 |
|
|
$ |
75,851 |
|
|
$ |
457,548 |
|
|
$ |
275,336 |
|
|
Adjustments to non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
Merger-related transaction costs |
|
|
20,184 |
|
|
|
15,567 |
|
|
|
2,477 |
|
|
|
56,867 |
|
|
|
7,826 |
|
|
Contingent litigation reserves |
|
|
— |
|
|
|
— |
|
|
|
3,000 |
|
|
|
— |
|
|
|
3,000 |
|
|
Adjusted non-interest expense |
|
$ |
114,139 |
|
|
$ |
120,435 |
|
|
$ |
70,374 |
|
|
$ |
400,681 |
|
|
$ |
264,510 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Annualized adjusted non-interest expense |
|
$ |
454,075 |
|
|
$ |
479,122 |
|
|
$ |
279,201 |
|
|
$ |
400,681 |
|
|
$ |
264,510 |
|
|
Average assets |
|
$ |
23,908,514 |
|
|
$ |
24,248,038 |
|
|
$ |
14,114,626 |
|
|
$ |
20,382,148 |
|
|
$ |
13,915,467 |
|
|
Annualized adjusted non-interest expense/average assets |
|
|
1.90 |
% |
|
|
1.98 |
% |
|
|
1.98 |
% |
|
|
1.97 |
% |
|
|
1.90 |
% |
| |
|
|
|
|
|
|
|
|
|
|
| (5) Efficiency Ratio
Calculation |
|
| |
|
Three Months Ended |
|
Year Ended |
| |
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
| |
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Net interest income |
|
$ |
181,737 |
|
|
$ |
183,701 |
|
|
$ |
95,788 |
|
|
$ |
600,614 |
|
|
$ |
399,454 |
|
|
Non-interest income |
|
|
24,175 |
|
|
|
26,855 |
|
|
|
18,968 |
|
|
|
94,113 |
|
|
|
79,829 |
|
|
Adjustments to non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
Net loss (gain) on securities transactions |
|
|
14 |
|
|
|
(2 |
) |
|
|
7 |
|
|
|
2,986 |
|
|
|
(30 |
) |
|
Adjusted non-interest income |
|
|
24,189 |
|
|
|
26,853 |
|
|
|
18,975 |
|
|
|
97,099 |
|
|
|
79,799 |
|
|
Total income |
|
$ |
205,912 |
|
|
$ |
210,554 |
|
|
$ |
114,756 |
|
|
$ |
694,727 |
|
|
$ |
479,283 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Adjusted non-interest expense |
|
$ |
114,139 |
|
|
$ |
120,435 |
|
|
$ |
70,374 |
|
|
$ |
400,681 |
|
|
$ |
264,510 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (adjusted non-interest expense/income) |
|
|
55.43 |
% |
|
|
57.20 |
% |
|
|
61.32 |
% |
|
|
57.67 |
% |
|
|
55.19 |
% |
| |
|
|
|
|
|
|
|
|
|
|
| (6) Book and Tangible
Book Value per Share |
|
| |
|
|
|
|
|
|
|
December 31, |
|
December 31, |
| |
|
|
|
|
|
|
|
|
2024 |
|
|
|
2023 |
|
|
Total stockholders' equity |
|
|
|
|
|
|
|
$ |
2,601,207 |
|
|
$ |
1,690,596 |
|
|
Less: total intangible assets |
|
|
|
|
|
|
|
|
819,230 |
|
|
|
457,942 |
|
|
Total tangible stockholders' equity |
|
|
|
|
|
|
|
$ |
1,781,977 |
|
|
$ |
1,232,654 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding |
|
|
|
|
|
|
|
|
130,489,493 |
|
|
|
75,537,186 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Book value per share (total stockholders' equity/shares
outstanding) |
|
|
|
|
|
|
|
$ |
19.93 |
|
|
$ |
22.38 |
|
|
Tangible book value per share (total tangible stockholders'
equity/shares outstanding) |
|
|
|
|
|
|
|
$ |
13.66 |
|
|
$ |
16.32 |
|
| |
|
PROVIDENT FINANCIAL SERVICES, INC. AND
SUBSIDIARY |
|
Consolidated Statements of Financial Condition |
|
December 31, 2024 (Unaudited) and December 31, 2023 |
|
(Dollars in Thousands) |
| |
|
|
|
|
Assets |
December 31, 2024 |
|
December 31, 2023 |
|
Cash and due from banks |
$ |
166,914 |
|
|
$ |
180,241 |
|
| Short-term investments |
|
25 |
|
|
|
14 |
|
|
Total cash and cash equivalents |
|
166,939 |
|
|
|
180,255 |
|
| Available for sale debt
securities, at fair value |
|
2,768,915 |
|
|
|
1,690,112 |
|
| Held to maturity debt
securities, (net of $14,000 allowance as of December 31, 2024
(unaudited) and $31,000 allowance as of December 31, 2023) |
|
327,623 |
|
|
|
363,080 |
|
| Equity securities, at fair
value |
|
19,762 |
|
|
|
1,270 |
|
| Federal Home Loan Bank
stock |
|
112,115 |
|
|
|
79,217 |
|
| Loans held for sale |
|
162,453 |
|
|
|
1,785 |
|
| Loans held for investment |
|
18,659,370 |
|
|
|
10,871,916 |
|
|
Less allowance for credit losses |
|
193,432 |
|
|
|
107,200 |
|
|
Net loans |
|
18,628,391 |
|
|
|
10,766,501 |
|
| Foreclosed assets, net |
|
9,473 |
|
|
|
11,651 |
|
| Banking premises and
equipment, net |
|
119,622 |
|
|
|
70,998 |
|
| Accrued interest
receivable |
|
91,160 |
|
|
|
58,966 |
|
| Intangible assets |
|
819,230 |
|
|
|
457,942 |
|
| Bank-owned life insurance |
|
405,893 |
|
|
|
243,050 |
|
| Other assets |
|
582,702 |
|
|
|
287,768 |
|
|
Total assets |
$ |
24,051,825 |
|
|
$ |
14,210,810 |
|
| |
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
| Deposits: |
|
|
|
|
Demand deposits |
$ |
13,775,991 |
|
|
$ |
8,020,889 |
|
|
Savings deposits |
|
1,679,667 |
|
|
|
1,175,683 |
|
|
Certificates of deposit of $250,000 or more |
|
789,342 |
|
|
|
218,549 |
|
|
Other time deposits |
|
2,378,813 |
|
|
|
877,393 |
|
|
Total deposits |
|
18,623,813 |
|
|
|
10,292,514 |
|
| Mortgage escrow deposits |
|
42,247 |
|
|
|
36,838 |
|
| Borrowed funds |
|
2,020,435 |
|
|
|
1,970,033 |
|
| Subordinated debentures |
|
401,608 |
|
|
|
10,695 |
|
| Other liabilities |
|
362,515 |
|
|
|
210,134 |
|
|
Total liabilities |
|
21,450,618 |
|
|
|
12,520,214 |
|
| |
|
|
|
| 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
130,489,493 shares outstanding as of December 31, 2024 and
75,537,186 outstanding as of December 31, 2023. |
|
1,376 |
|
|
|
832 |
|
| Additional paid-in
capital |
|
1,834,495 |
|
|
|
989,058 |
|
| Retained earnings |
|
989,111 |
|
|
|
974,542 |
|
| Accumulated other
comprehensive loss |
|
(135,355 |
) |
|
|
(141,115 |
) |
| Treasury stock |
|
(88,420 |
) |
|
|
(127,825 |
) |
| Unallocated common stock held
by the Employee Stock Ownership Plan |
|
— |
|
|
|
(4,896 |
) |
| Common Stock acquired by the
Directors' Deferred Fee Plan |
|
— |
|
|
|
(2,694 |
) |
| Deferred Compensation -
Directors' Deferred Fee Plan |
|
— |
|
|
|
2,694 |
|
|
Total stockholders' equity |
|
2,601,207 |
|
|
|
1,690,596 |
|
|
Total liabilities and stockholders' equity |
$ |
24,051,825 |
|
|
$ |
14,210,810 |
|
|
|
|
PROVIDENT FINANCIAL SERVICES, INC. AND
SUBSIDIARY |
|
Consolidated Statements of Income |
|
Three months ended December 31, 2024, September 30, 2024
(Unaudited) and December 31, 2023, and year ended December 31, 2024
(Unaudited) and 2023 |
|
(Dollars in Thousands, except per share data) |
| |
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Year Ended |
| |
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
|
2024 |
|
|
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Interest and dividend
income: |
|
|
|
|
|
|
|
|
|
|
Real estate secured loans |
$ |
194,236 |
|
|
$ |
197,857 |
|
$ |
109,112 |
|
|
$ |
655,868 |
|
|
$ |
408,942 |
|
|
Commercial loans |
|
75,978 |
|
|
|
81,183 |
|
|
34,939 |
|
|
|
251,793 |
|
|
|
128,854 |
|
|
Consumer loans |
|
10,815 |
|
|
|
12,947 |
|
|
5,020 |
|
|
|
36,635 |
|
|
|
18,439 |
|
|
Available for sale debt securities, equity securities and Federal
Home Loan Bank stock |
|
27,197 |
|
|
|
25,974 |
|
|
12,042 |
|
|
|
85,895 |
|
|
|
46,790 |
|
|
Held to maturity debt securities |
|
2,125 |
|
|
|
2,136 |
|
|
2,303 |
|
|
|
8,885 |
|
|
|
9,362 |
|
|
Deposits, federal funds sold and other short-term investments |
|
1,596 |
|
|
|
2,425 |
|
|
755 |
|
|
|
7,062 |
|
|
|
3,433 |
|
|
Total interest income |
|
311,947 |
|
|
|
322,522 |
|
|
164,171 |
|
|
|
1,046,138 |
|
|
|
615,820 |
|
| |
|
|
|
|
|
|
|
|
|
| Interest expense: |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
105,922 |
|
|
|
110,009 |
|
|
50,579 |
|
|
|
349,523 |
|
|
|
159,459 |
|
|
Borrowed funds |
|
15,652 |
|
|
|
19,923 |
|
|
17,527 |
|
|
|
73,523 |
|
|
|
55,856 |
|
|
Subordinated debt |
|
8,636 |
|
|
|
8,889 |
|
|
277 |
|
|
|
22,478 |
|
|
|
1,051 |
|
|
Total interest expense |
|
130,210 |
|
|
|
138,821 |
|
|
68,383 |
|
|
|
445,524 |
|
|
|
216,366 |
|
|
Net interest income |
|
181,737 |
|
|
|
183,701 |
|
|
95,788 |
|
|
|
600,614 |
|
|
|
399,454 |
|
| Provision charge (benefit) for
credit losses |
|
8,880 |
|
|
|
9,299 |
|
|
(863 |
) |
|
|
87,564 |
|
|
|
28,168 |
|
|
Net interest income after provision for credit losses |
|
172,857 |
|
|
|
174,402 |
|
|
96,651 |
|
|
|
513,050 |
|
|
|
371,286 |
|
| |
|
|
|
|
|
|
|
|
|
| Non-interest income: |
|
|
|
|
|
|
|
|
|
|
Fees |
|
9,687 |
|
|
|
9,816 |
|
|
6,102 |
|
|
|
34,114 |
|
|
|
24,396 |
|
|
Wealth management income |
|
7,655 |
|
|
|
7,620 |
|
|
6,843 |
|
|
|
30,533 |
|
|
|
27,669 |
|
|
Insurance agency income |
|
3,289 |
|
|
|
3,631 |
|
|
2,759 |
|
|
|
16,201 |
|
|
|
13,934 |
|
|
Bank-owned life insurance |
|
2,261 |
|
|
|
4,308 |
|
|
1,644 |
|
|
|
11,709 |
|
|
|
6,482 |
|
|
Net (loss) gain on securities transactions |
|
(14 |
) |
|
|
2 |
|
|
(7 |
) |
|
|
(2,986 |
) |
|
|
30 |
|
|
Other income |
|
1,297 |
|
|
|
1,478 |
|
|
1,627 |
|
|
|
4,542 |
|
|
|
7,318 |
|
|
Total non-interest income |
|
24,175 |
|
|
|
26,855 |
|
|
18,968 |
|
|
|
94,113 |
|
|
|
79,829 |
|
| |
|
|
|
|
|
|
|
|
|
| Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
Compensation and employee benefits |
|
59,937 |
|
|
|
63,468 |
|
|
38,773 |
|
|
|
218,341 |
|
|
|
148,497 |
|
|
Net occupancy expense |
|
12,562 |
|
|
|
12,790 |
|
|
7,797 |
|
|
|
45,014 |
|
|
|
32,271 |
|
|
Data processing expense |
|
9,881 |
|
|
|
10,481 |
|
|
6,457 |
|
|
|
35,579 |
|
|
|
22,993 |
|
|
FDIC Insurance |
|
3,411 |
|
|
|
4,180 |
|
|
2,890 |
|
|
|
12,964 |
|
|
|
8,578 |
|
|
Amortization of intangibles |
|
9,511 |
|
|
|
12,231 |
|
|
721 |
|
|
|
28,931 |
|
|
|
2,952 |
|
|
Advertising and promotion expense |
|
1,485 |
|
|
|
1,524 |
|
|
1,100 |
|
|
|
5,146 |
|
|
|
4,822 |
|
|
Merger-related expenses |
|
20,184 |
|
|
|
15,567 |
|
|
2,477 |
|
|
|
56,867 |
|
|
|
7,826 |
|
|
Other operating expenses |
|
17,352 |
|
|
|
15,761 |
|
|
15,636 |
|
|
|
54,706 |
|
|
|
47,397 |
|
|
Total non-interest expense |
|
134,323 |
|
|
|
136,002 |
|
|
75,851 |
|
|
|
457,548 |
|
|
|
275,336 |
|
|
Income before income tax expense |
|
62,709 |
|
|
|
65,255 |
|
|
39,768 |
|
|
|
149,615 |
|
|
|
175,779 |
|
| Income tax expense |
|
14,185 |
|
|
|
18,850 |
|
|
12,456 |
|
|
|
34,090 |
|
|
|
47,381 |
|
|
Net income |
$ |
48,524 |
|
|
$ |
46,405 |
|
$ |
27,312 |
|
|
$ |
115,525 |
|
|
$ |
128,398 |
|
| |
|
|
|
|
|
|
|
|
|
| Basic earnings per share |
$ |
0.37 |
|
|
$ |
0.36 |
|
$ |
0.36 |
|
|
$ |
1.05 |
|
|
$ |
1.72 |
|
| Average basic shares
outstanding |
|
130,067,244 |
|
|
|
129,941,845 |
|
|
74,995,705 |
|
|
|
109,668,911 |
|
|
|
74,844,489 |
|
| |
|
|
|
|
|
|
|
|
|
| Diluted earnings per
share |
$ |
0.37 |
|
|
$ |
0.36 |
|
$ |
0.36 |
|
|
$ |
1.05 |
|
|
$ |
1.71 |
|
| Average diluted shares
outstanding |
|
130,163,872 |
|
|
|
130,004,870 |
|
|
75,041,545 |
|
|
|
109,712,732 |
|
|
|
74,873,256 |
|
| |
|
PROVIDENT FINANCIAL SERVICES, INC. AND
SUBSIDIARY |
|
Net Interest Margin Analysis |
|
Quarterly Average Balances |
|
(Dollars in Thousands) (Unaudited) |
|
|
| |
December 31, 2024 |
|
September 30, 2024 |
|
December 31, 2023 |
| |
Average Balance |
|
Interest |
|
AverageYield/Cost |
|
Average Balance |
|
Interest |
|
AverageYield/Cost |
|
Average Balance |
|
Interest |
|
AverageYield/Cost |
| Interest-Earning
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
$ |
117,998 |
|
$ |
1,596 |
|
5.38 |
% |
|
$ |
179,313 |
|
$ |
2,425 |
|
5.38 |
% |
|
$ |
54,998 |
|
$ |
745 |
|
5.37 |
% |
|
Federal funds sold and other short-term investments |
|
— |
|
|
— |
|
— |
% |
|
|
— |
|
|
— |
|
— |
% |
|
|
838 |
|
|
10 |
|
4.39 |
% |
|
Available for sale debt securities |
|
2,720,065 |
|
|
25,063 |
|
3.69 |
% |
|
|
2,644,262 |
|
|
24,884 |
|
3.72 |
% |
|
|
1,647,906 |
|
|
9,858 |
|
2.39 |
% |
|
Held to maturity debt securities, net (1) |
|
328,147 |
|
|
2,125 |
|
2.59 |
% |
|
|
342,217 |
|
|
2,136 |
|
2.50 |
% |
|
|
364,433 |
|
|
2,303 |
|
2.53 |
% |
|
Equity securities, at fair value |
|
19,920 |
|
|
— |
|
— |
% |
|
|
19,654 |
|
|
— |
|
— |
% |
|
|
1,016 |
|
|
— |
|
— |
% |
|
Federal Home Loan Bank stock |
|
86,885 |
|
|
2,134 |
|
9.82 |
% |
|
|
91,841 |
|
|
1,090 |
|
4.75 |
% |
|
|
94,149 |
|
|
2,184 |
|
9.28 |
% |
|
Net loans: (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total mortgage loans |
|
13,287,942 |
|
|
194,236 |
|
5.75 |
% |
|
|
13,363,265 |
|
|
197,857 |
|
5.83 |
% |
|
|
8,028,300 |
|
|
109,112 |
|
5.34 |
% |
|
Total commercial loans |
|
4,587,048 |
|
|
75,978 |
|
6.54 |
% |
|
|
4,546,088 |
|
|
81,183 |
|
7.05 |
% |
|
|
2,329,430 |
|
|
34,939 |
|
5.90 |
% |
|
Total consumer loans |
|
612,453 |
|
|
10,815 |
|
7.02 |
% |
|
|
622,586 |
|
|
12,947 |
|
8.27 |
% |
|
|
302,471 |
|
|
5,020 |
|
6.58 |
% |
|
Total net loans |
|
18,487,443 |
|
|
281,029 |
|
5.99 |
% |
|
|
18,531,939 |
|
|
291,987 |
|
6.21 |
% |
|
|
10,660,201 |
|
|
149,071 |
|
5.50 |
% |
|
Total interest-earning assets |
$ |
21,760,458 |
|
$ |
311,947 |
|
5.66 |
% |
|
$ |
21,809,226 |
|
$ |
322,522 |
|
5.84 |
% |
|
$ |
12,823,541 |
|
$ |
164,171 |
|
5.04 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-Interest Earning
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
159,151 |
|
|
|
|
|
|
341,505 |
|
|
|
|
|
|
111,610 |
|
|
|
|
|
Other assets |
|
1,988,905 |
|
|
|
|
|
|
2,097,307 |
|
|
|
|
|
|
1,179,475 |
|
|
|
|
|
Total assets |
$ |
23,908,514 |
|
|
|
|
|
$ |
24,248,038 |
|
|
|
|
|
$ |
14,114,626 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-Bearing
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
$ |
10,115,827 |
|
$ |
71,265 |
|
2.80 |
% |
|
$ |
9,942,053 |
|
$ |
74,864 |
|
3.00 |
% |
|
$ |
5,856,916 |
|
$ |
39,648 |
|
2.69 |
% |
|
Savings deposits |
|
1,677,725 |
|
|
968 |
|
0.23 |
% |
|
|
1,711,502 |
|
|
1006 |
|
0.23 |
% |
|
|
1,183,857 |
|
|
602 |
|
0.20 |
% |
|
Time deposits |
|
3,187,172 |
|
|
33,689 |
|
4.21 |
% |
|
|
3,112,598 |
|
|
34,139 |
|
4.36 |
% |
|
|
1,095,468 |
|
|
10,329 |
|
3.74 |
% |
|
Total Deposits |
|
14,980,724 |
|
|
105,922 |
|
2.81 |
% |
|
|
14,766,153 |
|
|
110,009 |
|
2.96 |
% |
|
|
8,136,241 |
|
|
50,579 |
|
2.47 |
% |
|
Borrowed funds |
|
1,711,806 |
|
|
15,652 |
|
3.64 |
% |
|
|
2,125,149 |
|
|
19,923 |
|
3.73 |
% |
|
|
1,873,822 |
|
|
17,527 |
|
3.71 |
% |
|
Subordinated debentures |
|
400,852 |
|
|
8,636 |
|
8.57 |
% |
|
|
413,267 |
|
|
8,889 |
|
8.56 |
% |
|
|
10,663 |
|
|
277 |
|
10.27 |
% |
|
Total interest-bearing liabilities |
|
17,093,382 |
|
|
130,210 |
|
3.03 |
% |
|
|
17,304,569 |
|
|
138,821 |
|
3.19 |
% |
|
|
10,020,726 |
|
|
68,383 |
|
2.71 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-Interest Bearing
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits |
|
3,788,056 |
|
|
|
|
|
|
3,741,160 |
|
|
|
|
|
|
2,169,542 |
|
|
|
|
|
Other non-interest bearing liabilities |
|
403,057 |
|
|
|
|
|
|
541,839 |
|
|
|
|
|
|
281,504 |
|
|
|
|
|
Total non-interest bearing liabilities |
|
4,191,113 |
|
|
|
|
|
|
4,282,999 |
|
|
|
|
|
|
2,451,046 |
|
|
|
|
|
Total liabilities |
|
21,284,495 |
|
|
|
|
|
|
21,587,568 |
|
|
|
|
|
|
12,471,772 |
|
|
|
|
|
Stockholders' equity |
|
2,624,019 |
|
|
|
|
|
|
2,660,470 |
|
|
|
|
|
|
1,642,854 |
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
23,908,514 |
|
|
|
|
|
$ |
24,248,038 |
|
|
|
|
|
$ |
14,114,626 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest income |
|
|
$ |
181,737 |
|
|
|
|
|
$ |
183,701 |
|
|
|
|
|
$ |
95,788 |
|
|
| Net interest rate spread |
|
|
|
|
2.63 |
% |
|
|
|
|
|
2.65 |
% |
|
|
|
|
|
2.33 |
% |
| Net interest-earning
assets |
$ |
4,667,076 |
|
|
|
|
|
$ |
4,504,657 |
|
|
|
|
|
$ |
2,802,815 |
|
|
|
|
| Net interest margin (3) |
|
|
|
|
3.28 |
% |
|
|
|
|
|
3.31 |
% |
|
|
|
|
|
2.92 |
% |
| Ratio of interest-earning
assets to total interest-bearing liabilities |
1.27x |
|
|
|
|
|
1.26x |
|
|
|
|
|
1.28x |
|
|
|
|
| |
|
|
|
|
(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. |
|
|
|
| |
|
|
|
| |
12/31/24 |
|
9/30/24 |
|
6/30/24 |
|
3/31/24 |
|
12/31/23 |
| |
4th Qtr. |
|
3rd Qtr. |
|
2nd Qtr. |
|
1st Qtr. |
|
4th Qtr. |
| Interest-Earning
Assets: |
|
|
|
|
|
|
|
|
|
|
Securities |
3.78 |
% |
|
3.69 |
% |
|
3.40 |
% |
|
2.87 |
% |
|
2.79 |
% |
|
Net loans |
5.99 |
% |
|
6.21 |
% |
|
6.05 |
% |
|
5.51 |
% |
|
5.50 |
% |
|
Total interest-earning assets |
5.66 |
% |
|
5.84 |
% |
|
5.67 |
% |
|
5.06 |
% |
|
5.04 |
% |
| |
|
|
|
|
|
|
|
|
|
| Interest-Bearing
Liabilities: |
|
|
|
|
|
|
|
|
|
|
Total deposits |
2.81 |
% |
|
2.96 |
% |
|
2.84 |
% |
|
2.60 |
% |
|
2.47 |
% |
|
Total borrowings |
3.64 |
% |
|
3.73 |
% |
|
3.83 |
% |
|
3.60 |
% |
|
3.71 |
% |
|
Total interest-bearing liabilities |
3.03 |
% |
|
3.19 |
% |
|
3.09 |
% |
|
2.80 |
% |
|
2.71 |
% |
| |
|
|
|
|
|
|
|
|
|
| Interest rate spread |
2.63 |
% |
|
2.65 |
% |
|
2.58 |
% |
|
2.26 |
% |
|
2.33 |
% |
| Net interest margin |
3.28 |
% |
|
3.31 |
% |
|
3.21 |
% |
|
2.87 |
% |
|
2.92 |
% |
| |
|
|
|
|
|
|
|
|
|
| Ratio of interest-earning
assets to interest-bearing liabilities |
1.27x |
|
1.26x |
|
1.25x |
|
1.28x |
|
1.28x |
| |
|
PROVIDENT FINANCIAL SERVICES, INC. AND
SUBSIDIARY |
|
Net Interest Margin Analysis |
|
Average Year to Date Balances |
|
(Dollars in Thousands) (Unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
December 31, 2024 |
|
December 31, 2023 |
| |
Average |
|
|
|
Average |
|
Average |
|
|
|
Average |
| |
Balance |
|
Interest |
|
Yield/Cost |
|
Balance |
|
Interest |
|
Yield/Cost |
| Interest-Earning
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
$ |
36,932 |
|
$ |
7,062 |
|
5.23 |
% |
|
$ |
65,991 |
|
$ |
3,421 |
|
5.18 |
% |
|
Federal funds sold and other short-term investments |
|
— |
|
|
— |
|
— |
% |
|
|
255 |
|
|
12 |
|
4.55 |
% |
|
Available for sale debt securities |
|
2,323,158 |
|
|
77,617 |
|
3.32 |
% |
|
|
1,745,105 |
|
|
40,678 |
|
2.33 |
% |
|
Held to maturity debt securities, net (1) |
|
344,903 |
|
|
8,885 |
|
2.58 |
% |
|
|
375,436 |
|
|
9,362 |
|
2.49 |
% |
|
Equity securities, at fair value |
|
12,367 |
|
|
— |
|
— |
% |
|
|
1,020 |
|
|
— |
|
— |
% |
|
Federal Home Loan Bank stock |
|
85,358 |
|
|
8,278 |
|
9.70 |
% |
|
|
81,797 |
|
|
6,112 |
|
7.47 |
% |
|
Net loans: (2) |
|
|
|
|
|
|
|
|
|
|
|
|
Total mortgage loans |
|
11,333,540 |
|
|
655,868 |
|
5.79 |
% |
|
|
7,813,764 |
|
|
408,942 |
|
5.23 |
% |
|
Total commercial loans |
|
3,768,388 |
|
|
251,793 |
|
6.68 |
% |
|
|
2,251,175 |
|
|
128,854 |
|
5.72 |
% |
|
Total consumer loans |
|
498,503 |
|
|
36,635 |
|
7.35 |
% |
|
|
302,681 |
|
|
18,439 |
|
6.09 |
% |
|
Total net loans |
|
15,600,431 |
|
|
944,296 |
|
6.05 |
% |
|
|
10,367,620 |
|
|
556,235 |
|
5.37 |
% |
|
Total interest-earning assets |
$ |
18,403,149 |
|
$ |
1,046,138 |
|
5.68 |
% |
|
$ |
12,637,224 |
|
$ |
615,820 |
|
4.87 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Non-Interest Earning
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
233,829 |
|
|
|
|
|
|
119,232 |
|
|
|
|
|
Other assets |
|
1,745,170 |
|
|
|
|
|
|
1,159,011 |
|
|
|
|
|
Total assets |
$ |
20,382,148 |
|
|
|
|
|
$ |
13,915,467 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Interest-Bearing
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
$ |
8,480,380 |
|
$ |
245,874 |
|
2.90 |
% |
|
$ |
5,747,671 |
|
$ |
125,471 |
|
2.18 |
% |
|
Savings deposits |
|
1,502,852 |
|
|
3,443 |
|
0.23 |
% |
|
|
1,282,062 |
|
|
2,184 |
|
0.17 |
% |
|
Time deposits |
|
2,367,144 |
|
|
100,206 |
|
4.23 |
% |
|
|
994,901 |
|
|
31,804 |
|
3.20 |
% |
|
Total deposits |
|
12,350,376 |
|
|
349,523 |
|
2.83 |
% |
|
|
8,024,634 |
|
|
159,459 |
|
1.99 |
% |
|
Borrowed funds |
|
1,983,674 |
|
|
73,523 |
|
3.71 |
% |
|
|
1,636,572 |
|
|
55,856 |
|
3.41 |
% |
|
Subordinated debentures |
|
262,275 |
|
|
22,478 |
|
8.57 |
% |
|
|
10,588 |
|
|
1,051 |
|
9.92 |
% |
|
Total interest-bearing liabilities |
$ |
14,596,325 |
|
$ |
445,524 |
|
3.05 |
% |
|
$ |
9,671,794 |
|
$ |
216,366 |
|
2.24 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Non-Interest Bearing
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits |
|
3,120,571 |
|
|
|
|
|
|
2,328,557 |
|
|
|
|
|
Other non-interest bearing liabilities |
|
385,727 |
|
|
|
|
|
|
270,587 |
|
|
|
|
|
Total non-interest bearing liabilities |
|
3,506,298 |
|
|
|
|
|
|
2,599,144 |
|
|
|
|
|
Total liabilities |
|
18,102,623 |
|
|
|
|
|
|
12,270,938 |
|
|
|
|
|
Stockholders' equity |
|
2,279,525 |
|
|
|
|
|
|
1,644,529 |
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
20,382,148 |
|
|
|
|
|
$ |
13,915,467 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Net interest income |
|
|
$ |
600,614 |
|
|
|
|
|
$ |
399,454 |
|
|
| Net interest rate spread |
|
|
|
|
2.63 |
% |
|
|
|
|
|
2.63 |
% |
| Net interest-earning
assets |
$ |
3,806,824 |
|
|
|
|
|
$ |
2,965,430 |
|
|
|
|
| Net interest margin (3) |
|
|
|
|
3.26 |
% |
|
|
|
|
|
3.16 |
% |
| Ratio of interest-earning
assets to total interest-bearing liabilities |
1.26x |
|
|
|
|
|
1.31x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (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. |
| |
|
|
|
|
|
|
| |
Year Ended |
|
| |
December 31,2024 |
|
December 31,2023 |
|
December 31,2022 |
|
| Interest-Earning
Assets: |
|
|
|
|
|
|
|
Securities |
3.43 |
% |
|
2.62 |
% |
|
1.86 |
% |
|
|
Net loans |
6.05 |
% |
|
5.37 |
% |
|
4.26 |
% |
|
|
Total interest-earning assets |
5.68 |
% |
|
4.87 |
% |
|
3.76 |
% |
|
| |
|
|
|
|
|
|
| Interest-Bearing
Liabilities: |
|
|
|
|
|
|
|
Total deposits |
2.83 |
% |
|
1.99 |
% |
|
0.47 |
% |
|
|
Total borrowings |
3.71 |
% |
|
3.41 |
% |
|
1.23 |
% |
|
|
Total interest-bearing liabilities |
3.05 |
% |
|
2.24 |
% |
|
0.54 |
% |
|
| |
|
|
|
|
|
|
| Interest rate spread |
2.63 |
% |
|
2.63 |
% |
|
3.22 |
% |
|
| Net interest margin |
3.26 |
% |
|
3.16 |
% |
|
3.37 |
% |
|
| |
|
|
|
|
|
|
| Ratio of interest-earning
assets to interest-bearing liabilities |
1.26x |
|
1.31x |
|
1.38x |
|
| |
|
|
|
|
|
|
Provident Financial Serv... (NYSE:PFS)
Historical Stock Chart
From Jan 2025 to Feb 2025
Provident Financial Serv... (NYSE:PFS)
Historical Stock Chart
From Feb 2024 to Feb 2025
