Provident Financial Services, Inc. Announces First Quarter Earnings and Declares Quarterly Cash Dividend

ISELIN, N.J., April 24, 2025 (GLOBE NEWSWIRE) -- Provident Financial Services, Inc. (NYSE:PFS) (the “Company”) reported net income of $64.0 million, or $0.49 per basic and diluted share for the three months ended March 31, 2025, compared to $48.5 million, or $0.37 per basic and diluted share, for the three months ended December 31, 2024 and $32.1 million, or $0.43 per basic and diluted share, for the three months ended March 31, 2024. Net income for the three months ended March 31, 2025 was negatively impacted by a $2.7 million write-down on a foreclosed property, partially offset by a $624,000 profit on fixed asset sales related to the consolidation of three branches. While there were no transaction costs related to our merger with Lakeland Bancorp, Inc. (“Lakeland”) for the 2025 period, these costs totaled $20.2 million for the three months ended December 31, 2024 and $2.2 million for the three months ended March 31, 2024, respectively. Anthony J. Labozzetta, President and Chief Executive Officer commented, “With the integration of Lakeland behind us, we are starting to see the benefits of the transaction come to fruition. We are very pleased with our first quarter financial results and encouraged by the promising start to the year. Despite ongoing uncertainty in the markets, our core businesses, credit quality and risk management remain strong. Our team is focused on building the business, delivering exceptional customer service and creating value for all stakeholders while remaining agile in this rapidly changing economic and regulatory environment." Performance Highlights for the First Quarter of 2025 Adjusted for a one-time write-down on a foreclosed property in the current quarter, as well as transaction costs related to the merger with Lakeland in prior quarters, the Company's annualized adjusted returns on average assets, average equity and average tangible equity(1) were 1.11%, 10.13% and 16.15% for the quarter ended March 31, 2025, compared to 1.05%, 9.53% and 15.39% for the quarter ended December 31, 2024. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 11 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 1.61%, 14.63% and 21.18% for the quarter ended March 31, 2025, compared to 1.53%, 13.91% and 20.31% for the quarter ended December 31, 2024. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 11 of the earnings release.The Company’s total commercial and industrial ("C&I") loan portfolio increased $74.3 million, or 6.5% annualized, to $4.68 billion as of March 31, 2025, from $4.61 billion as of December 31, 2024. Additionally, the Company's total commercial portfolio increased $150.0 million, or 3.8% annualized to $16.19 billion as of March 31, 2025, from $16.04 billion as of December 31, 2024.The net interest margin increased six basis points to 3.34% for the quarter ended March 31, 2025, from 3.28% for the trailing quarter, while the core net interest margin, which excludes the impact of purchase accounting accretion and amortization, increased nine basis points from the trailing quarter to 2.94%. The average yield on total loans decreased four basis points to 5.95% for the quarter ended March 31, 2025, compared to the trailing quarter, while the average cost of deposits, including non-interest-bearing deposits, decreased 14 basis points to 2.11% for the quarter ended March 31, 2025.The Company recorded a $325,000 provision for credit losses on loans for the quarter ended March 31, 2025, compared to a $7.8 million provision for the trailing quarter. The decrease in the provision for credit losses for the quarter was primarily attributable to the change in a qualitative factor indexed to the forecasted unemployment rate that resulted in a decrease in reserves required on pooled loans within our Current Expected Credit Loss ("CECL") model. The allowance for credit losses as a percentage of loans decreased to 1.02% as of March 31, 2025, from 1.04% as of December 31, 2024.Insurance Agency income increased $858,000 or 17.9%, versus the same period in 2024, while pre-tax Insurance Agency net income increased $544,000 or 23.3% versus the same period in 2024.As of March 31, 2025, the Company's loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $2.77 billion, with a weighted average interest rate of 6.31%. Declaration of Quarterly Dividend The Company’s Board of Directors declared a quarterly cash dividend of $0.24 per common share payable on May 30, 2025 to stockholders of record as of the close of business on May 16, 2025. Results of Operations Three months ended March 31, 2025 compared to the three months ended December 31, 2024 For the three months ended March 31, 2025, net income was $64.0 million, or $0.49 per basic and diluted share, compared to net income of $48.5 million, or $0.37 per basic and diluted share, for the three months ended December 31, 2024. Net Interest Income and Net Interest Margin Net interest income was $181.7 million for the three months ended March 31, 2025 and the trailing quarter, despite there being two fewer calendar days in the first quarter of 2025, primarily due to favorable repricing of deposits. The Company’s net interest margin increased six basis points to 3.34% for the quarter ended March 31, 2025, from 3.28% for the trailing quarter. The weighted average yield on interest-earning assets for the quarter ended March 31, 2025 decreased three basis points to 5.63%, compared to the trailing quarter. The weighted average cost of interest-bearing liabilities for the quarter ended March 31, 2025 decreased 13 basis points from the trailing quarter to 2.90%. The average cost of interest-bearing deposits for the quarter ended March 31, 2025 decreased 17 basis points to 2.64%, compared to 2.81% for the trailing quarter. The average cost of total deposits, including non-interest-bearing deposits, was 2.11% for the quarter ended March 31, 2025, compared to 2.25% for the trailing quarter. The average cost of borrowed funds for the quarter ended March 31, 2025 was 3.76%, compared to 3.64% for the quarter ended December 31, 2024. Provision for Credit Losses on Loans For the quarter ended March 31, 2025, the Company recorded a $325,000 provision for credit losses on loans, compared with a provision for credit losses of $7.8 million for the quarter ended December 31, 2024. The decrease in the provision for credit losses for the quarter was primarily attributable to the change in a qualitative factor indexed to the forecasted unemployment rate that resulted in a decrease in reserves required on pooled loans within our CECL model. For the three months ended March 31, 2025, net charge-offs totaled $2.0 million, or an annualized four basis points of average loans, compared with net charge-offs of $5.5 million, or an annualized nine basis points of average loans, for the trailing quarter. Non-Interest Income and Expense For the three months ended March 31, 2025, non-interest income totaled $27.0 million, an increase of $2.9 million, compared to the trailing quarter. Insurance agency income increased $2.4 million to $5.7 million for the three months ended March 31, 2025, compared to the trailing quarter, mainly due to the receipt of contingent commissions and additional business in the current quarter. Additionally, other income increased $920,000 to $2.2 million for the three months ended March 31, 2025, compared to the trailing quarter, primarily due to an increase in profit on fixed asset sales, combined with an increase in net fees on loan-level interest rate swap transactions. Partially offsetting these increases to non-interest income, wealth management income decreased $327,000 to $7.3 million for the three months ended March 31, 2025, compared to the trailing quarter, mainly due to a decrease in the average market value of assets under management during the period, while BOLI income decreased $169,000 for the three months ended March 31, 2025, compared to the trailing quarter, primarily due to decreased equity valuations. Non-interest expense totaled $116.3 million for the three months ended March 31, 2025, a decrease of $18.1 million, compared to $134.3 million for the trailing quarter. Merger-related expenses, which were completed at the end of 2024, decreased $20.2 million for the three months ended March 31, 2025, compared to the trailing quarter. Other operating expenses decreased $929,000 to $16.4 million for the three months ended March 31, 2025, compared to $17.4 million for the trailing quarter, largely due to a prior quarter $1.4 million charge for contingent litigation reserves, combined with decreases in professional service and insurance expenses, partially offset by a $2.7 million write-down on a foreclosed property. Partially offsetting these decreases in non-interest expense, compensation and benefits expense increased $2.4 million to $62.4 million for the three months ended March 31, 2025, compared to $59.9 million for the trailing quarter. The increase in compensation and benefit expense was primarily due to increases in salary expense related to company-wide annual merit increases and severance expense, partially offset by a decrease in stock-based compensation. Additionally, net occupancy expense increased $1.4 million to $13.9 million for the three months ended March 31, 2025, compared to the trailing quarter, largely due to seasonal increases in snow removal, utilities and other maintenance costs. The Company’s annualized adjusted non-interest expense as a percentage of average assets(1) totaled 1.92% for the quarter ended March 31, 2025, compared to 1.90% 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 54.43% for the three months ended March 31, 2025, compared to 55.43% for the trailing quarter. Income Tax Expense For the three months ended March 31, 2025, the Company's income tax expense was $27.8 million with an effective tax rate of 30.3%, compared with income tax expense of $14.2 million with an effective tax rate of 22.6% for the trailing quarter. The increase in tax expense and the effective tax rate for the three months ended March 31, 2025, compared with the trailing quarter was largely due to an increase in taxable income and a discrete item related to stock-based compensation, combined with a prior quarter $4.2 million tax benefit related to the revaluation of certain 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 March 31, 2025 compared to the three months ended March 31, 2024 For the three months ended March 31, 2025, net income was $64.0 million, or $0.49 per basic and diluted share, compared to net income of $32.1 million, or $0.43 per basic and diluted share, for the three months ended March 31, 2024. Net Interest Income and Net Interest Margin Net interest income increased $88.1 million to $181.7 million for the three months ended March 31, 2025, from $93.7 million for same period in 2024. The increase in net interest income was favorably impacted by the net assets added in the May 16, 2024 acquisition of Lakeland and related accretion of purchase accounting adjustments. The Company’s net interest margin increased 47 basis points to 3.34% for the quarter ended March 31, 2025, from 2.87% for the same period last year. The weighted average yield on interest-earning assets for the quarter ended March 31, 2025 increased 57 basis points to 5.63%, compared to 5.06% for the quarter ended March 31, 2024. The weighted average cost of interest-bearing liabilities increased 10 basis points for the quarter ended March 31, 2025 to 2.90%, compared to 2.80% for the first quarter of 2024. The average cost of interest-bearing deposits for the quarter ended March 31, 2025 was 2.64%, compared to 2.60% for the same period last year. Average non-interest-bearing demand deposits increased $1.65 billion to $3.72 billion for the quarter ended March 31, 2025, compared to $2.07 billion for the quarter ended March 31, 2024. The average cost of total deposits, including non-interest-bearing deposits, was 2.11% for the quarter ended March 31, 2025, compared with 2.04% for the quarter ended March 31, 2024. The average cost of borrowed funds for the quarter ended March 31, 2025 was 3.76%, compared to 3.60% for the same period last year. Provision for Credit Losses on Loans For the quarter ended March 31, 2025, the Company recorded a $325,000 provision for credit losses on loans, compared with a $200,000 provision for credit losses on loans for the quarter ended March 31, 2024. The increase in the provision for credit losses was due to an increase in specific reserves on impaired credits. For the three months ended March 31, 2025, net charge-offs totaled $2.0 million, or an annualized four basis points of average loans, compared with net charge-offs of $971,000, or an annualized four basis points of average loans, for the quarter ended March 31, 2024. Non-Interest Income and Expense Non-interest income totaled $27.0 million for the quarter ended March 31, 2025, an increase of $6.2 million, compared to the same period in 2024. Fee income increased $3.7 million to $9.7 million for the three months ended March 31, 2025, compared to the prior year quarter, primarily due to increases in deposit fee income, debit card related fee income and commercial loan prepayment fees, resulting from the Lakeland merger. Other income increased $1.4 million to $2.2 million for the three months ended March 31, 2025, compared to the quarter ended March 31, 2024, primarily due to an increase in profit on fixed asset sales, combined with an increase in net fees on loan-level interest rate swap transactions and an increase in gains on sales of mortgage loans. Insurance agency income increased $858,000 to $5.7 million for the three months ended March 31, 2025, compared to the quarter ended March 31, 2024, largely due to an increase in contingency income and business activity, while BOLI income increased $275,000 to $2.1 million for the three months ended March 31, 2025, compared to the prior year quarter, related to the addition of Lakeland's BOLI, partially offset by a decrease in equity valuations. For the three months ended March 31, 2025, non-interest expense totaled $116.3 million, an increase of $44.4 million, compared to the three months ended March 31, 2024. Compensation and benefits expense increased $22.3 million to $62.4 million for three months ended March 31, 2025, compared to $40.0 million for the same period in 2024. The increase was primarily due to the addition of Lakeland, combined with an increase in salary expense associated with Company-wide annual merit increases. Amortization of intangibles increased $8.8 million to $9.5 million for the three months ended March 31, 2024, compared to $705,000 for 2024, largely due to core deposit intangible amortization related to the addition of Lakeland. Other operating expense increased $6.1 million to $16.4 million for the three months ended March 31, 2025, compared to $10.3 million for the three months ended March 31, 2024, largely due to the addition of Lakeland and a $2.7 million write-down on a foreclosed property in the current quarter. Net occupancy expense increased $5.4 million to $13.9 million for the three months ended March 31, 2024, compared to the same period in 2024, primarily due to increased depreciation and maintenance expenses because of the addition of Lakeland. Data processing expense increased $2.8 million to $9.6 million for three months ended March 31, 2025, compared to $6.8 million for the same period in 2024. The increase in data processing expense was primarily due to increases in software service, telecommunication and core service expenses, due to the addition of Lakeland. Additionally, FDIC insurance expense increased $1.1 million to $3.4 million for the three months ended March 31, 2025, compared to the same period in 2024, primarily due to increases in the assessment rate and average assets, as a result of the addition of Lakeland. Partially offsetting these increases in non-interest expense, merger-related expenses, which completed at the end of 2024 decreased $2.2 million for the three months ended March 31, 2025, compared to the same period in 2024. The Company’s annualized adjusted non-interest expense as a percentage of average assets(1) was 1.92% for the quarter ended March 31, 2025, compared to 1.99% for the same period in 2024. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)(1) was 54.43% for the three months ended March 31, 2025 compared to 60.82% for the same respective period in 2024. Income Tax Expense For the three months ended March 31, 2025, the Company's income tax expense was $27.8 million with an effective tax rate of 30.3%, compared with $10.9 million with an effective tax rate of 25.3% for the three months ended March 31, 2024. The increase in tax expense for the three months ended March 31, 2025, compared with the same period last year, was largely the result of an increase in taxable income and an increase in state tax rates as a result of the May 2024 Lakeland merger, as well as a discrete item related to stock-based compensation. The increase in state tax rates is a result of the Company no longer receiving benefit of a reduced New Jersey state rate available for the Company's REIT and New Jersey investment company subsidiaries. The state of New Jersey allows certain bank subsidiaries with assets under $15 billion to benefit from the lower rate, however due to the Lakeland merger in May of 2024, the $15 billion asset threshold was crossed and the increased New Jersey rate was applicable. Asset Quality The Company’s total non-performing loans as of March 31, 2025 were $103.2 million, or 0.54% of total loans, compared $72.1 million, or 0.39% of total loans as of December 31, 2024 and $35.5 million, or 0.35% of total loans as of March 31, 2024. The $31.2 million increase in non-performing loans as of March 31, 2025, compared to the trailing quarter, was primarily attributable to two loans: a $20.3 million commercial real estate loan secured by a mixed use property with a current loan-to value of 53% and an $11.5 million construction loan secured by a nearly complete warehouse facility with a current loan-to-value of 62%. These loans have no prior charge-off history and carry no specific reserve allocations. As of March 31, 2025, impaired loans totaled $86.1 million with related specific reserves of $7.9 million, compared with impaired loans totaling $55.4 million with related specific reserves of $7.5 million as of December 31, 2024. As of March 31, 2024, impaired loans totaled $40.1 million with related specific reserves of $8.2 million. As of March 31, 2025, the Company’s allowance for credit losses related to the loan held for investment portfolio was 1.02% of total loans, compared to 1.04% and 0.98% as of December 31, 2024 and March 31, 2024, respectively. The allowance for credit losses decreased $1.7 million to $191.8 million as of March 31, 2025, from $193.4 million as of December 31, 2024. The decrease in the allowance for credit losses on loans at March 31, 2025 compared to December 31, 2024 was due to net charge-offs of $2.0 million, partially offset by a $325,000 provision for credit losses. The following table shows accruing past due loans and non-accrual loans on the dates indicated, as well as certain asset quality ratios. March 31, 2025 December 31, 2024 March 31, 2024 Number of Loans PrincipalBalanceof Loans Number of Loans PrincipalBalanceof Loans Number of Loans PrincipalBalanceof Loans (Dollars in thousands)Accruing past due loans: 30 to 59 days past due: Commercial mortgage loans 8 $13,696 7 $8,538 3 $5,052 Multi-family mortgage loans 1 7,433 — — 4 12,069 Construction loans — — — — — — Residential mortgage loans 27 6,905 22 6,388 11 3,568 Total mortgage loans 36 28,034 29 14,926 18 20,689 Commercial loans 37 13,472 23 4,248 11 4,493 Consumer loans 22 1,604 47 3,152 22 803 Total 30 to 59 days past due 95 $43,110 99 $22,326 51 $25,985 60 to 89 days past due: Commercial mortgage loans 2 $196 4 $3,954 3 $1,148 Multi-family mortgage loans — — — — — — Construction loans — — — — — — Residential mortgage loans 18 5,009 17 5,049 6 804 Total mortgage loans 20 5,205 21 9,003 9 1,952 Commercial loans 15 3,743 9 2,377 3 332 Consumer loans 12 854 15 856 8 755 Total 60 to 89 days past due 47 9,802 45 12,236 20 3,039 Total accruing past due loans 142 $52,912 144 $34,562 71 $29,024 Non-accrual: Commercial mortgage loans 18 $42,931 17 $20,883 8 $5,938 Multi-family mortgage loans 5 7,294 6 7,498 2 2,355 Construction loans 3 18,929 2 13,246 — — Residential mortgage loans 22 5,246 23 4,535 10 1,647 Total mortgage loans 48 74,400 48 46,162 20 9,940 Commercial loans 83 27,471 65 24,243 21 36,892 Consumer loans 19 1,352 23 1,656 11 760 Total non-accrual loans 150 $103,223 136 $72,061 52 $47,592 Non-performing loans to total loans 0.54% 0.39% 0.44% Allowance for loan losses to total non-performing loans 185.78% 268.43% 223.63% Allowance for loan losses to total loans 1.02% 1.04% 0.98% The increase in accruing past due loans versus the trailing quarter was primarily attributable to two loans: a $10.5 million commercial real estate loan which is expected to be fully resolved in the second quarter through the completion of a pending note sale and a $7.4 million commercial real estate loan that is in the process of refinancing with the Company. As of March 31, 2025 and December 31, 2024, the Company held foreclosed assets of $6.8 million and $9.5 million, respectively. Foreclosed assets as of March 31, 2025 were comprised of commercial real estate. Total non-performing assets as of March 31, 2025 increased $28.4 million to $110.0 million, or 0.45% of total assets, from $81.5 million, or 0.34% of total assets as of December 31, 2024. During the three months ended March 31, 2025, there was a write-down of a foreclosed commercial property of $2.7 million based on a contracted sales price. The sale of this property is expected to close in the second quarter of 2025, reducing foreclosed assets by $5.8 million. Balance Sheet Summary Total assets as of March 31, 2025 were $24.22 billion, a $172.9 million increase from December 31, 2024. The increase in total assets was primarily due to a $132.0 million increase in total loans and a $110.5 million increase in total investments, partially offset by a decrease in intangible and other assets. The Company’s loans held for investment portfolio totaled $18.79 billion as of March 31, 2025 and $18.66 billion as of December 31, 2024. The portfolio consisted of the following: March 31, 2025 December 31, 2024 (Dollars in thousands)Mortgage loans: Commercial$7,295,651 $7,228,078 Multi-family 3,458,190 3,382,933 Construction 756,356 823,503 Residential 1,994,404 2,010,637 Total mortgage loans 13,504,601 13,445,151 Commercial loans 4,682,902 4,608,600 Consumer loans 613,453 613,819 Total gross loans 18,800,956 18,667,570 Premiums on purchased loans 1,337 1,338 Net deferred fees and unearned discounts (10,922) (9,538) Total loans$18,791,371 $18,659,370 During the three months ended March 31, 2025, the loans held for investment portfolio had net increases of $75.3 million of multi-family loans, $74.3 million of commercial loans and $67.6 million of commercial mortgage loans, partially offset by net decreases of $67.1 million of construction loans and $16.2 million of residential mortgage loans. Total commercial loans, consisting of commercial real estate, multi-family, commercial and construction loans, represented 86.1% of the loan portfolio as of March 31, 2025, compared to 85.9% as of December 31, 2024. For the three months ended March 31, 2025, loan funding, including advances on lines of credit, totaled $1.93 billion, compared with $622.7 million for the same period in 2024. As of March 31, 2025, the Company’s unfunded loan commitments totaled $2.88 billion, including commitments of $1.75 billion in commercial loans, $517.7 million in construction loans and $141.4 million in commercial mortgage loans. Unfunded loan commitments as of December 31, 2024 and March 31, 2024 were $2.73 billion and $1.97 billion, respectively. The loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $2.77 billion as of March 31, 2025, compared to $1.79 billion and $1.08 billion as of December 31, 2024 and March 31, 2024, respectively. Total investment securities were $3.34 billion as of March 31, 2025, a $110.5 million increase from December 31, 2024. This increase was primarily due to purchases of mortgage-backed and municipal securities and a decrease in unrealized losses on available for sale debt securities. Total deposits decreased $175.0 million during the three months ended March 31, 2025, to $18.45 billion. Total savings and demand deposit accounts decreased $172.5 million to $15.28 billion as of March 31, 2025, while total time deposits decreased $2.4 million to $3.17 billion as of March 31, 2025. The decrease in savings and demand deposits consisted of a $142.8 million decrease in interest bearing demand deposits, a $22.0 million decrease in money market deposits and a $8.7 million decrease in savings deposits, partially offset by a $1.1 million increase in non-interest-bearing demand deposits. Within total savings and demand deposits, total municipal deposits decreased $130.8 million to $3.38 billion as of March 31, 2025, mainly due to seasonal outflows. The decrease in time deposits consisted of a $78.6 million decrease in retail time deposits, partially offset by a $76.2 million increase in brokered time deposits. Borrowed funds increased $315.8 million during the three months ended March 31, 2025, to $2.34 billion. The increase in borrowings was largely due to asset funding requirements. Borrowed funds represented 9.6% of total assets as of March 31, 2025, an increase from 8.4% as of December 31, 2024. Stockholders’ equity increased $57.6 million during the three months ended March 31, 2025, to $2.66 billion, primarily due to net income earned for the period and a decrease in unrealized losses on available for sale debt securities, partially offset by cash dividends paid to stockholders. For the three months ended March 31, 2025, common stock repurchases totaled 99,541 shares at an average cost of $18.19 per share, all of which were made in connection with withholding to cover income taxes on the vesting of stock-based compensation. As of March 31, 2025, approximately 873,000 shares remained eligible for repurchase under the current authorization. Book value per share and tangible book value per share(1) as of March 31, 2025 were $20.35 and $14.15, respectively, compared with $19.93 and $13.66, respectively, as of December 31, 2024. About the Company Provident Financial Services, Inc. is the holding company for Provident Bank, a community-oriented bank offering "Commitment you can count on" since 1839. Provident Bank provides a comprehensive array of financial products and services through its network of branches throughout New Jersey, Bucks, Lehigh and Northampton counties in Pennsylvania, as well as Orange, Queens and Nassau Counties in New York. The Bank also provides fiduciary and wealth management services through its wholly owned subsidiary, Beacon Trust Company and insurance services through its wholly owned subsidiary, Provident Protection Plus, Inc. Post Earnings Conference Call Representatives of the Company will hold a conference call for investors on Friday, April 25, 2025 at 10:00 a.m. Eastern Time to discuss the Company’s financial results for the quarter ended March 31, 2025. The call may be accessed by dialing 1-888-412-4131 (United States Toll Free) and 1-646-960-0134 (United States Local). Speakers will need to enter conference ID code (3610756) before being met by a live operator. Internet access to the call is also available (listen only) at provident.bank by going to Investor Relations and clicking on "Webcast." 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, 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 SUBSIDIARYConsolidated Financial Highlights(Dollars in Thousands, except share data) (Unaudited) As of or for the Three months ended March 31, December 31, March 31, 2025 2024 2024 Statement of Income Net interest income$181,728 $181,737 $93,670 Provision for credit losses 638 8,880 186 Non-interest income 27,030 24,175 20,807 Non-interest expense 116,267 134,323 71,321 Income before income tax expense 91,853 62,709 42,970 Net income 64,028 48,524 32,082 Diluted earnings per share$0.49 $0.37 $0.43 Interest rate spread 2.73% 2.63% 2.26% Net interest margin 3.34% 3.28% 2.87% Profitability Annualized return on average assets 1.08% 0.81% 0.92% Annualized adjusted return on average assets (1) 1.11% 1.05% 0.97% Annualized return on average equity 9.84% 7.36% 7.60% Annualized adjusted return on average equity (1) 10.13% 9.53% 8.04% Annualized return on average tangible equity (1) 15.73% 12.21% 10.40% Annualized adjusted return on average tangible equity (1) 16.15% 15.39% 11.16% Annualized adjusted non-interest expense to average assets (3) 1.92% 1.90% 1.99% Efficiency ratio (4) 54.43% 55.43% 60.82% Asset Quality Non-accrual loans$103,223 $72,061 $47,592 90+ and still accruing — — — Non-performing loans 103,223 72,061 47,592 Foreclosed assets 6,755 9,473 11,324 Non-performing assets 109,978 81,534 58,916 Non-performing loans to total loans 0.54% 0.39% 0.44% Non-performing assets to total assets 0.45% 0.34% 0.42% Allowance for loan losses$191,770 $193,432 $106,429 Allowance for loan losses to total non-performing loans 185.78% 268.43% 223.63% Allowance for loan losses to total loans 1.02% 1.04% 0.98% Net loan charge-offs$1,987 $5,493 $971 Annualized net loan charge-offs to average total loans 0.04% 0.12% 0.04% Average Balance Sheet Data Assets$24,049,318 $23,908,514 $14,093,767 Loans, net 18,590,877 18,487,443 10,668,992 Earning assets 21,946,053 21,760,458 12,862,910 Core deposits 15,497,343 15,581,608 9,129,244 Borrowings 1,918,069 1,711,806 1,940,981 Interest-bearing liabilities 17,297,892 17,093,382 10,074,106 Stockholders' equity 2,638,361 2,624,019 1,698,170 Average yield on interest-earning assets 5.63% 5.66% 5.06% Average cost of interest-bearing liabilities 2.90% 3.03% 2.80% 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 March 31, December 31, March 31, 2025 2024 2024 Net Income $64,028 $48,524 $32,082 Write-down on ORE property 2,690 — — Merger-related transaction costs — 20,184 2,202 Less: income tax expense (809) (5,819) (342) Annualized adjusted net income $65,909 $62,889 $33,942 Less: Amortization of Intangibles (net of tax) $6,642 $6,649 $493 Annualized adjusted net income for annualized adjusted return on average tangible equity $72,551 $69,538 $34,434 Annualized Adjusted Return on Average Assets 1.11% 1.05% 0.97% Annualized Adjusted Return on Average Equity 10.13% 9.53% 8.04% Annualized Adjusted Return on Average Tangible Equity 16.15% 15.39% 11.16% (2) Annualized adjusted pre-tax, pre-provision ("PTPP") returns on average assets, average equity and average tangible equity Three Months Ended March 31, December 31, March 31, 2025 2024 2024 Net income $64,028 $48,524 $32,082 Adjustments to net income: Provision charge (benefit) for credit losses 638 8,880 (320) Write-down on ORE property 2,690 — — Merger-related transaction costs — 20,184 2,202 Income tax expense 27,825 14,185 10,888 PTPP income $95,181 $91,773 $44,852 Annualized adjusted PTPP income $386,012 $365,097 $180,394 Average assets $24,049,318 $23,908,514 $14,093,767 Average equity $2,638,361 $2,624,019 $1,698,170 Average tangible equity $1,822,407 $1,797,994 $1,240,475 Annualized adjusted PTPP return on average assets 1.61% 1.53% 1.28% Annualized adjusted PTPP return on average equity 14.63% 13.91% 10.62% Annualized adjusted PTPP return on average tangible equity 21.18% 20.31% 14.54% (3) Annualized Return on Average Tangible Equity Three Months Ended March 31, December 31, March 31, 2025 2024 2024 Total average stockholders' equity $2,638,361 $2,624,019 $1,698,170 Less: total average intangible assets 815,954 826,025 457,695 Total average tangible stockholders' equity $1,822,407 $1,797,994 $1,240,475 Net income 64,028 48,524 32,082 Less: Amortization of Intangibles, net of tax 6,642 6,649 493 Total net income $70,670 $55,173 $32,575 Annualized return on average tangible equity (net income/total average tangible stockholders' equity) 15.73% 12.21% 10.56% (4) Annualized Adjusted Non-Interest Expense to Average Assets Three Months Ended March 31, December 31, March 31, 2025 2024 2024 Reported non-interest expense $116,267 $134,323 $71,321 Adjustments to non-interest expense: Credit loss (benefit) expense for off-balance sheet credit exposures — — (506) Write-down on ORE property 2,690 — — Merger-related transaction costs — 20,184 2,202 Adjusted non-interest expense $113,577 $114,139 $69,625 Annualized adjusted non-interest expense $460,618 $454,075 $280,030 Average assets $24,049,318 $23,908,514 $14,093,767 Annualized adjusted non-interest expense/average assets 1.92% 1.90% 1.99% (5) Efficiency Ratio Calculation Three Months Ended March 31, December 31, March 31, 2025 2024 2024 Net interest income $181,728 $181,737 $93,670 Non-interest income 27,030 24,175 20,807 Adjustments to non-interest income: Net (gain) loss on securities transactions (87) 14 1 Adjusted non-interest income $26,943 $24,189 $20,808 Total income $208,671 $205,926 $114,478 Adjusted non-interest expense $113,577 $114,139 $69,625 Efficiency ratio (adjusted non-interest expense/income) 54.43% 55.43% 60.82% (6) Book and Tangible Book Value per Share Three Months Ended March 31, December 31, March 31, 2025 2024 2024 Total stockholders' equity $2,658,794 $2,601,207 $1,695,162 Less: total intangible assets 809,725 819,230 457,239 Total tangible stockholders' equity $1,849,069 $1,781,977 $1,237,923 Shares outstanding 130,661,195 130,489,493 75,928,193 Book value per share (total stockholders' equity/shares outstanding) $20.35 $19.93 $22.33 Tangible book value per share (total tangible stockholders' equity/shares outstanding) $14.15 $13.66 $16.30 PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARYConsolidated Statements of Financial ConditionMarch 31, 2025 (Unaudited) and December 31, 2024(Dollars in Thousands) AssetsMarch 31, 2025 December 31, 2024Cash and cash equivalents$234,076 $205,939 Available for sale debt securities, at fair value 2,878,785 2,768,915 Held to maturity debt securities, (net of $17,000 allowance as of March 31, 2025 (unaudited) and $14,000 allowance as of December 31, 2024) 314,005 327,623 Equity securities, at fair value 19,871 19,110 Federal Home Loan Bank stock 126,271 112,767 Loans held for sale 149,961 162,453 Loans held for investment 18,791,371 18,659,370 Less allowance for credit losses 191,770 193,432 Net loans 18,749,562 18,628,391 Foreclosed assets, net 6,755 9,473 Banking premises and equipment, net 115,424 119,622 Accrued interest receivable 91,776 91,160 Intangible assets 809,725 819,230 Bank-owned life insurance 407,986 405,893 Other assets 470,523 543,702 Total assets$24,224,759 $24,051,825 Liabilities and Stockholders' Equity Deposits: Demand deposits$13,612,189 $13,775,991 Savings deposits 1,670,920 1,679,667 Certificates of deposit of $250,000 or more 767,626 789,342 Other time deposits 2,398,128 2,378,813 Total deposits 18,448,863 18,623,813 Mortgage escrow deposits 51,261 42,247 Borrowed funds 2,336,191 2,020,435 Subordinated debentures 402,853 401,608 Other liabilities 326,797 362,515 Total liabilities 21,565,965 21,450,618 Stockholders' equity: Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued — — Common stock, $0.01 par value, 200,000,000 shares authorized, 137,565,966 shares issued and 130,663,184 shares outstanding as of March 31, 2025 and 130,489,493 outstanding as of December 31, 2024. 1,376 1,376 Additional paid-in capital 1,836,665 1,834,495 Retained earnings 1,021,266 989,111 Accumulated other comprehensive loss (110,246) (135,355) Treasury stock (90,267) (88,420) Total stockholders' equity 2,658,794 2,601,207 Total liabilities and stockholders' equity$24,224,759 $24,051,825 PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARYConsolidated Statements of IncomeThree months ended March 31, 2025, December 31, 2024 and March 31, 2024(Dollars in Thousands, except per share data) (Unaudited) Three Months Ended March 31, December 31, March 31, 2025 2024 2024 Interest and dividend income: Real estate secured loans$187,054 $194,236 $107,456 Commercial loans 75,819 75,978 36,100 Consumer loans 10,158 10,815 4,523 Available for sale debt securities, equity securities and Federal Home Loan Bank stock 29,644 27,197 12,330 Held to maturity debt securities 1,996 2,125 2,268 Deposits, federal funds sold and other short-term investments 675 1,596 1,182 Total interest income 305,346 311,947 163,859 Interest expense: Deposits 97,420 105,922 52,534 Borrowed funds 17,778 15,652 17,383 Subordinated debt 8,420 8,636 272 Total interest expense 123,618 130,210 70,189 Net interest income 181,728 181,737 93,670 Provision charge for credit losses 638 8,880 (320) Net interest income after provision for credit losses 181,090 172,857 93,990 Non-interest income: Fees 9,655 9,687 5,912 Wealth management income 7,328 7,655 7,488 Insurance agency income 5,651 3,289 4,793 Bank-owned life insurance 2,092 2,261 1,817 Net gain (loss) on securities transactions 87 (14) (1) Other income 2,217 1,297 798 Total non-interest income 27,030 24,175 20,807 Non-interest expense: Compensation and employee benefits 62,366 59,937 40,048 Net occupancy expense 13,927 12,562 8,520 Data processing expense 9,605 9,881 6,783 FDIC Insurance 3,385 3,411 2,272 Amortization of intangibles 9,501 9,511 705 Advertising and promotion expense 1,060 1,485 966 Merger-related expenses — 20,184 2,202 Other operating expenses 16,423 17,352 10,331 Total non-interest expense 116,267 134,323 71,827 Income before income tax expense 91,853 62,709 42,970 Income tax expense 27,825 14,185 10,888 Net income$64,028 $48,524 $32,082 Basic earnings per share$0.49 $0.37 $0.43 Average basic shares outstanding 130,325,393 130,067,244 75,260,029 Diluted earnings per share$0.49 $0.37 $0.43 Average diluted shares outstanding 130,380,475 130,163,872 75,275,660 PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARYNet Interest Margin AnalysisQuarterly Average Balances(Dollars in Thousands) (Unaudited) March 31, 2025 December 31, 2024 March 31, 2024 Average Balance Interest Average Yield/Cost Average Balance Interest Average Yield/Cost Average Balance Interest Average Yield/CostInterest-Earning Assets: Deposits$80,074 $675 4.21% $117,998 $1,596 5.38% $87,869 $1,182 5.41% Available for sale debt securities 2,827,699 27,621 3.89% 2,720,066 25,064 3.69% 1,673,950 10,022 2.39% Held to maturity debt securities, net (1) 320,036 1,996 2.50% 328,147 2,125 2.59% 357,246 2,268 2.54% Equity securities, at fair value 19,840 — —% 19,920 — —% 1,099 — —%Federal Home Loan Bank stock 107,527 2,023 7.53% 86,885 2,134 9.82% 73,754 2,308 12.52% Net loans: (2) Total mortgage loans 13,297,168 187,054 5.70% 13,287,942 194,236 5.75% 7,990,218 107,456 5.33% Total commercial loans 4,684,572 75,819 6.56% 4,587,048 75,978 6.54% 2,381,965 36,100 6.03% Total consumer loans 609,137 10,158 6.76% 612,453 10,815 7.02% 296,809 4,523 6.13% Total net loans 18,590,877 273,031 5.95% 18,487,443 281,029 5.99% 10,668,992 148,079 5.51% Total interest-earning assets$21,946,053 $305,346 5.63% $21,760,458 $311,947 5.66% $12,862,910 $163,859 5.06% Non-Interest Earning Assets: Cash and due from banks 134,205 159,151 116,563 Other assets 1,969,060 1,988,905 1,114,294 Total assets$24,049,318 $23,908,514 $14,093,767 Interest-Bearing Liabilities: Demand deposits$10,095,570 $65,433 2.63% $10,115,827 $71,265 2.80% $5,894,062 $41,566 2.84% Savings deposits 1,682,596 924 0.22% 1,677,725 968 0.23% 1,163,181 637 0.22% Time deposits 3,199,620 31,063 3.94% 3,187,172 33,689 4.21% 1,065,170 10,331 3.90% Total Deposits 14,977,786 97,420 2.64% 14,980,724 105,922 2.81% 8,122,413 52,534 2.60% Borrowed funds 1,918,069 17,778 3.76% 1,711,806 15,652 3.64% 1,940,981 17,383 3.60% Subordinated debentures 402,037 8,420 8.49% 400,852 8,636 8.57% 10,712 272 10.23% Total interest-bearing liabilities 17,297,892 123,618 2.90% 17,093,382 130,210 3.03% 10,074,106 70,189 2.80% Non-Interest Bearing Liabilities: Non-interest bearing deposits 3,719,177 3,788,056 2,072,001 Other non-interest bearing liabilities 393,888 403,057 249,490 Total non-interest bearing liabilities 4,113,065 4,191,113 2,321,491 Total liabilities 21,410,957 21,284,495 12,395,597 Stockholders' equity 2,638,361 2,624,019 1,698,170 Total liabilities and stockholders' equity$24,049,318 $23,908,514 $14,093,767 Net interest income $181,728 $181,737 $93,670 Net interest rate spread 2.73% 2.63% 2.26% Net interest-earning assets$4,648,161 $4,667,076 $2,788,804 Net interest margin (3) 3.34% 3.28% 2.87% Ratio of interest-earning assets to total interest-bearing liabilities1.27x 1.27x 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 loans held for sale and 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. 3/31/25 12/31/24 9/30/24 6/30/24 3/31/24 1st Qtr. 4th Qtr. 3rd Qtr. 2nd Qtr. 1st Qtr.Interest-Earning Assets: Securities3.86% 3.78% 3.69% 3.40% 2.87% Net loans5.95% 5.99% 6.21% 6.05% 5.51% Total interest-earning assets5.63% 5.66% 5.84% 5.67% 5.06% Interest-Bearing Liabilities: Total deposits2.64% 2.81% 2.96% 2.84% 2.60% Total borrowings3.76% 3.64% 3.73% 3.83% 3.60% Total interest-bearing liabilities2.90% 3.03% 3.19% 3.09% 2.80% Interest rate spread2.73% 2.63% 2.65% 2.58% 2.26% Net interest margin3.34% 3.28% 3.31% 3.21% 2.87% Ratio of interest-earning assets to interest-bearing liabilities1.27x 1.27x 1.26x 1.25x 1.28x PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARYNet Interest Margin AnalysisAverage Year to Date Balances(Dollars in Thousands) (Unaudited) March 31, 2025 March 31, 2024 Average Average Average Average Balance Interest Yield/Cost Balance Interest Yield/CostInterest-Earning Assets: Deposits$80,074 $675 4.21% $87,869 $1,182 5.41% Available for sale debt securities 2,827,699 27,621 3.89% 1,673,950 10,022 2.39% Held to maturity debt securities, net (1) 320,036 1,996 2.50% 357,246 2,268 2.54% Equity securities, at fair value 19,840 — —% 1,099 — —% Federal Home Loan Bank stock 107,527 2,023 7.53% 73,754 2,308 12.52% Net loans: (2) Total mortgage loans 13,297,168 187,054 5.70% 7,990,218 107,456 5.33% Total commercial loans 4,684,572 75,819 6.56% 2,381,965 36,100 6.03% Total consumer loans 609,137 10,158 6.76% 296,809 4,523 6.13% Total net loans 18,590,877 273,031 5.95% 10,668,992 148,079 5.51% Total interest-earning assets$21,946,053 $305,346 5.63% $12,862,910 $163,859 5.06% Non-Interest Earning Assets: Cash and due from banks 134,205 116,563 Other assets 1,969,060 1,114,294 Total assets$24,049,318 $14,093,767 Interest-Bearing Liabilities: Demand deposits$10,095,570 $65,433 2.63% $5,894,062 $41,566 2.84% Savings deposits 1,682,596 924 0.22% 1,163,181 637 0.22% Time deposits 3,199,620 31,063 3.94% 1,065,170 10,331 3.90% Total deposits 14,977,786 97,420 2.64% 8,122,413 52,534 2.60% Borrowed funds 1,918,069 17,778 3.76% 1,940,981 17,383 3.60% Subordinated debentures 402,037 8,420 8.49% 10,712 272 10.23% Total interest-bearing liabilities$17,297,892 $123,618 2.90% $10,074,106 $70,189 2.80% Non-Interest Bearing Liabilities: Non-interest bearing deposits 3,719,177 2,072,001 Other non-interest bearing liabilities 393,888 249,490 Total non-interest bearing liabilities 4,113,065 2,321,491 Total liabilities 21,410,957 12,395,597 Stockholders' equity 2,638,361 1,698,170 Total liabilities and stockholders' equity$24,049,318 $14,093,767 Net interest income $181,728 $93,670 Net interest rate spread 2.73% 2.26% Net interest-earning assets$4,648,161 $2,788,804 Net interest margin (3) 3.34% 2.87% Ratio of interest-earning assets to total interest-bearing liabilities1.27x 1.28x (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 loans held for sale and 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. Three Months Ended March 31, 2025 March 31, 2024 March 31, 2023 Interest-Earning Assets: Securities3.86% 2.87% 2.52% Net loans5.95% 5.51% 5.12% Total interest-earning assets5.63% 5.06% 4.63% Interest-Bearing Liabilities: Total deposits2.64% 2.60% 1.39% Total borrowings3.76% 3.60% 2.48% Total interest-bearing liabilities2.90% 2.80% 1.54% Interest rate spread2.73% 2.26% 3.09% Net interest margin3.34% 2.87% 3.48% Ratio of interest-earning assets to interest-bearing liabilities1.27x 1.28x 1.34x CONTACT: Investor Relations, 1-732-590-9300

Provident Financial Services, Inc. Announces First Quarter Earnings and Declares Quarterly Cash Dividend

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