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

ISELIN, N.J., Jan. 28, 2025 (GLOBE NEWSWIRE) -- 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 SUBSIDIARYConsolidated 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 2023Net 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 SUBSIDIARYConsolidated Statements of Financial ConditionDecember 31, 2024 (Unaudited) and December 31, 2023(Dollars in Thousands) AssetsDecember 31, 2024 December 31, 2023Cash 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 SUBSIDIARYConsolidated Statements of IncomeThree 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 SUBSIDIARYNet Interest Margin AnalysisQuarterly 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/CostInterest-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 liabilities1.27x 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: Securities3.78% 3.69% 3.40% 2.87% 2.79%Net loans5.99% 6.21% 6.05% 5.51% 5.50%Total interest-earning assets5.66% 5.84% 5.67% 5.06% 5.04% Interest-Bearing Liabilities: Total deposits2.81% 2.96% 2.84% 2.60% 2.47%Total borrowings3.64% 3.73% 3.83% 3.60% 3.71%Total interest-bearing liabilities3.03% 3.19% 3.09% 2.80% 2.71% Interest rate spread2.63% 2.65% 2.58% 2.26% 2.33%Net interest margin3.28% 3.31% 3.21% 2.87% 2.92% Ratio of interest-earning assets to interest-bearing liabilities1.27x 1.26x 1.25x 1.28x 1.28x PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARYNet Interest Margin AnalysisAverage 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/CostInterest-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 liabilities1.26x 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: Securities3.43% 2.62% 1.86% Net loans6.05% 5.37% 4.26% Total interest-earning assets5.68% 4.87% 3.76% Interest-Bearing Liabilities: Total deposits2.83% 1.99% 0.47% Total borrowings3.71% 3.41% 1.23% Total interest-bearing liabilities3.05% 2.24% 0.54% Interest rate spread2.63% 2.63% 3.22% Net interest margin3.26% 3.16% 3.37% Ratio of interest-earning assets to interest-bearing liabilities1.26x 1.31x 1.38x

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

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