Provident Financial Services, Inc. Reports Second Quarter Earnings

ISELIN, N.J., July 24, 2025 (GLOBE NEWSWIRE) -- Provident Financial Services, Inc. (NYSE:PFS) (the “Company”) reported net income of $72.0 million, or $0.55 per basic and diluted share for the three months ended June 30, 2025, compared to $64.0 million, or $0.49 per basic and diluted share, for the three months ended March 31, 2025 and a net loss of $11.5 million, or $(0.11) per basic and diluted share, for the three months ended June 30, 2024. For the six months ended June 30, 2025, net income totaled $136.0 million, or $1.04 per basic and diluted share, compared to $20.6 million, or $0.23 per basic and diluted share, for the six months ended June 30, 2024. While there were no transaction costs related to our merger with Lakeland Bancorp, Inc. (“Lakeland”) for the 2025 period, these costs totaled $79.0 million and $81.2 million, including an initial Current Expected Credit Loss ("CECL") provision for credit losses recorded as part of the Lakeland merger, for the three and six months ended June 30, 2024, respectively. Anthony J. Labozzetta, President and Chief Executive Officer commented, “Provident's performance this quarter was impressive and I am very proud of the team's continued hard work and dedication to excellence. We achieved record revenues by growing earning assets and expanding margins, while improving operational efficiency and maintaining strong asset quality. We look forward to sustaining our positive momentum and continuing to grow our business.” Performance Highlights for the Second Quarter of 2025 Adjusted for a one-time write-down on a foreclosed property in the prior quarter, the Company's annualized adjusted returns on average assets, average equity and average tangible equity(1) were 1.19%, 10.76% and 16.79% for the quarter ended June 30, 2025, compared to 1.11%, 10.13% and 16.15% for the quarter ended March 31, 2025. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 12 of the earnings release.The Company's annualized adjusted pre-tax, pre-provision returns on average assets, average equity and average tangible equity(2) were 1.64%, 14.88% and 21.26% for the quarter ended June 30, 2025, compared to 1.61%, 14.63% and 21.18% for the quarter ended March 31, 2025. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 12 of the earnings release.The Company reported record revenue of $214.2 million for the quarter ended June 30, 2025, comprised of record net interest income of $187.1 million and non-interest income of $27.1 million.Average interest-earning assets increased $383.8 million, or an annualized 7.0%, for the quarter ended June 30, 2025, versus the trailing quarter.The Company’s commercial and industrial ("C&I") loan portfolio, excluding mortgage warehouse lines, increased $182.7 million, or 16.26% annualized, to $4.69 billion as of June 30, 2025, from $4.51 billion as of March 31, 2025. Additionally, the Company's total commercial loan portfolio, including mortgage warehouse lines, commercial mortgage, multi-family and construction loans, increased $319.3 million, or 7.98% annualized, to $16.51 billion as of June 30, 2025, from $16.19 billion as of March 31, 2025.As of June 30, 2025, the Company's loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $2.59 billion, with a weighted average interest rate of 6.30%, compared to $2.77 billion, with a weighted average interest rate of 6.31%, as of March 31, 2025.The net interest margin increased two basis points to 3.36% for the quarter ended June 30, 2025, from 3.34% for the trailing quarter, while the core net interest margin, which excludes the impact of purchase accounting accretion and amortization, decreased one basis point from the trailing quarter to 2.93%. The weighted average yield on interest-earning assets for the quarter ended June 30, 2025 increased five basis points to 5.68%, compared to the trailing quarter, while the weighted average cost of interest-bearing liabilities for the quarter ended June 30, 2025 increased four basis points to 2.94%, compared to the trailing quarter.The Company recorded a $2.7 million benefit to the provision for credit losses on loans for the quarter ended June 30, 2025, compared to a $325,000 provision for the trailing quarter. Non-performing assets to total assets improved to 0.44% as of June 30, 2025, and annualized net charge-offs were 0.03% of loans for the quarter. The allowance for credit losses as a percentage of loans decreased to 0.98% as of June 30, 2025, from 1.02% as of March 31, 2025.Tangible book value per share (3) increased 3.2% to $14.60 and our tangible common equity ratio increased 13 basis points to 8.03% as of June 30, 2025. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 13 of the earnings release. Results of Operations Three months ended June 30, 2025 compared to the three months ended March 31, 2025 For the three months ended June 30, 2025, the Company reported net income of $72.0 million, or $0.55 per basic and diluted share, compared to net income of $64.0 million, or $0.49 per basic and diluted share, for the three months ended March 31, 2025. Net Interest Income and Net Interest Margin Net interest income increased $5.4 million to $187.1 million for the three months ended June 30, 2025, from $181.7 million for the trailing quarter. The increase in net interest income was primarily due to originations of new loans at current market rates and the favorable repricing of adjustable rate loans, partially offset by a decrease in average lower-costing deposits and an increase in average borrowings. The Company’s net interest margin increased two basis points to 3.36% for the quarter ended June 30, 2025, from 3.34% for the trailing quarter. The weighted average yield on interest-earning assets for the quarter ended June 30, 2025 increased five basis points to 5.68%, compared to the trailing quarter. The weighted average cost of interest-bearing liabilities for the quarter ended June 30, 2025 increased four basis points from the trailing quarter, to 2.94%. The average cost of interest-bearing deposits for the quarter ended June 30, 2025 decreased two basis points to 2.62%, compared to 2.64% for the trailing quarter. The average cost of total deposits, including non-interest-bearing deposits, was 2.10% for the quarter ended June 30, 2025, compared to 2.11% for the trailing quarter. The average cost of borrowed funds for the quarter ended June 30, 2025 was 3.94%, compared to 3.76% for the quarter ended March 31, 2025. Provision for Credit Losses on Loans For the quarter ended June 30, 2025, the Company recorded a $2.7 million benefit to the provision for credit losses on loans, compared with a provision for credit losses on loans of $325,000 for the quarter ended March 31, 2025. The benefit to the provision for credit losses on loans in the quarter was primarily attributable to an improved economic forecast and an overall improvement in the Company's asset quality, partially offset by an increase in specific reserves required on individually analyzed loans. For the three months ended June 30, 2025, net charge-offs totaled $1.2 million, or an annualized three basis points of average loans, compared with net charge-offs of $2.0 million, or an annualized four basis points of average loans for the trailing quarter. Non-Interest Income and Expense For the three months ended June 30, 2025, non-interest income totaled $27.1 million, an increase of $45,000, compared to the trailing quarter. Fee income increased $1.1 million to $10.7 million for the three months ended June 30, 2025, compared to the trailing quarter, primarily due to increases in deposit related and loan prepayment fee income, combined with an increase in non-deposit investment fee income. BOLI income increased $493,000 for the three months ended June 30, 2025, compared to the trailing quarter, primarily due to greater equity valuations and an increase in benefit claims recognized. Partially offsetting these increases in non-interest income, insurance agency income decreased $709,000 to $4.9 million for the three months ended June 30, 2025, compared to the trailing quarter, mainly due to the receipt of contingent commissions in the prior quarter, partially offset by additional business activity in the current quarter. Wealth management income decreased $380,000 to $6.9 million for the three months ended June 30, 2025, compared to the trailing quarter, mainly due to a decrease in the average market value of assets under management during the period. Additionally, other income decreased $353,000 to $1.9 million for the three months ended June 30, 2025, compared to the trailing quarter, primarily due to a decrease in profit on fixed asset sales. Non-interest expense totaled $114.6 million for the three months ended June 30, 2025, a decrease of $1.7 million, compared to $116.3 million for the trailing quarter. Other operating expenses decreased $1.9 million to $14.5 million for the three months ended June 30, 2025, compared to $16.4 million for the trailing quarter, primarily due to a prior quarter $2.7 million write-down on a foreclosed property, while net occupancy expense decreased $916,000 to $13.0 million for the three months ended June 30, 2025, compared to $13.9 million for the trailing quarter, primarily due to decreases in snow removal, utilities and other maintenance costs. Partially offsetting these decreases in non-interest expense, compensation and benefits expense increased $883,000 to $63.2 million for the three months ended June 30, 2025, compared to $62.4 million for the trailing quarter. The increase in compensation and benefits expense was primarily attributable to an increase in salary expense, primarily due to additional business days in the current quarter compared to the trailing quarter. The Company’s annualized adjusted non-interest expense as a percentage of average assets(5) totaled 1.89% for the quarter ended June 30, 2025, compared to 1.92% for the trailing quarter. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)(6) improved to 53.52% for the three months ended June 30, 2025, compared to 54.43% for the trailing quarter. Income Tax Expense For the three months ended June 30, 2025, the Company's income tax expense was $30.5 million with an effective tax rate of 29.7%, compared to income tax expense of $27.8 million with an effective tax rate of 30.3%, for the trailing quarter. The increase in tax expense for the three months ended June 30, 2025 compared with the trailing quarter was largely due to an increase in taxable income in the current quarter, while the decrease in tax rate was primarily due to a discrete item related to stock-based compensation in the prior quarter. Three months ended June 30, 2025 compared to the three months ended June 30, 2024 For the three months ended June 30, 2025, the Company reported net income of $72.0 million, or $0.55 per basic and diluted share, compared to a net loss of $11.5 million, or $(0.11) per basic and diluted share, for the three months ended June 30, 2024. While there were no transaction costs related to our merger with Lakeland for the 2025 period, these costs totaled $79.0 million, including an initial CECL provision for credit losses recorded as part of the Lakeland merger, for the three months ended June 30, 2024. Net Interest Income and Net Interest Margin Net interest income increased $45.6 million to $187.1 million for the three months ended June 30, 2025, from $141.5 million for same period in 2024. The increase in net interest income was largely driven by growth in average earning assets and net assets added in the May 16, 2024 acquisition of Lakeland and related accretion of purchase accounting adjustments. The Company’s net interest margin increased 15 basis points to 3.36% for the quarter ended June 30, 2025, from 3.21% for the same period last year. The weighted average yield on interest-earning assets for the quarter ended June 30, 2025 increased one basis point to 5.68%, compared to 5.67% for the quarter ended June 30, 2024. The weighted average cost of interest-bearing liabilities decreased 15 basis points for the quarter ended June 30, 2025 to 2.94%, compared to 3.09% for the second quarter of 2024. The average cost of interest-bearing deposits for the quarter ended June 30, 2025 was 2.62%, compared to 2.84% for the same period last year. Average non-interest-bearing demand deposits increased $833.2 million to $3.70 billion for the quarter ended June 30, 2025, compared to $2.87 billion for the quarter ended June 30, 2024. The average cost of total deposits, including non-interest-bearing deposits, was 2.10% for the quarter ended June 30, 2025, compared with 2.24% for the quarter ended June 30, 2024. The average cost of borrowed funds for the quarter ended June 30, 2025 was 3.94%, compared to 3.83% for the same period last year. Provision for Credit Losses on Loans For the quarter ended June 30, 2025, the Company recorded a $2.7 million benefit to the provision for credit losses on loans, compared with a $66.1 million provision for credit losses on loans for the quarter ended June 30, 2024. The benefit to the provision for credit losses on loans in the quarter was primarily attributable to an improved economic forecast and an overall improvement in the Company's asset quality, partially offset by an increase in specific reserves required on individually analyzed loans. The provision for credit losses on loans for the prior year quarter was primarily attributable to an initial CECL provision for credit losses of $60.1 million, recorded as part of the Lakeland merger. For the three months ended June 30, 2025, net charge-offs totaled $1.2 million, or an annualized three basis points of average loans, compared with net charge-offs of $2.7 million, or an annualized seven basis points of average loans, for the same period last year. Non-Interest Income and Expense Non-interest income totaled $27.1 million for the quarter ended June 30, 2025, an increase of $4.8 million, compared to the same period in 2024. Net gain on securities transactions increased $3.0 million for the three months ended June 30, 2025, compared to the same period in 2024, primarily due to a prior year $2.8 million loss on the sale of subordinated debt issued by Lakeland from the Provident investment portfolio prior to the merger. Fee income increased $2.0 million to $10.7 million for the three months ended June 30, 2025, compared to the prior year quarter, primarily due to increases in deposit fee income, debit card related fee income and loan related fee income, resulting from the Lakeland merger. Additionally, other income increased $895,000 to $1.9 million for the three months ended June 30, 2025, compared to the quarter ended June 30, 2024, primarily due to increases in gains on the sale of SBA loans, while insurance agency income increased $454,000 to $4.9 million for the three months ended June 30, 2025, compared to the quarter ended June 30, 2024, largely due to an increase in business activity. Partially offsetting these increases to non-interest income, wealth management fees decreased $821,000 to $6.9 million for the three months ended June 30, 2025, compared to the quarter ended June 30, 2024, mainly due to a decrease in the average market value of assets under management during the period, while BOLI income decreased $738,000 to $2.6 million for the three months ended June 30, 2025, compared to the prior year quarter, primarily due to a decrease in benefit claims recognized. For the three months ended June 30, 2025, non-interest expense totaled $114.6 million, a decrease of $780,000, compared to the three months ended June 30, 2024. Merger-related expenses decreased $18.9 million for the three months ended June 30, 2025, compared to the same period in 2024. Partially offsetting the decrease in merger-related expenses, compensation and benefits expense increased $8.4 million to $63.2 million for the three months ended June 30, 2025, compared to $54.9 million for the same period in 2024, primarily attributable to the addition of Lakeland personnel. Other operating expenses increased $3.2 million to $14.5 million for the three months ended June 30, 2025, compared to $11.3 million for the same period in 2024, primarily due to the addition of Lakeland. Amortization of intangibles increased $3.0 million to $9.5 million for the three months ended June 30, 2025, compared to $6.5 million for the same period in 2024, largely due to core deposit intangible amortization related to Lakeland. Net occupancy expense increased $1.9 million to $13.0 million for three months ended June 30, 2025, compared to $11.1 million for the same period in 2024, primarily due to an increase in depreciation and maintenance expenses due to the addition of Lakeland. Data processing expenses increased $1.2 million to $9.6 million for three months ended June 30, 2025, compared to $8.4 million for the same period in 2024, primarily due to the addition of Lakeland. The Company’s annualized adjusted non-interest expense as a percentage of average assets(5) was 1.89% for the quarter ended June 30, 2025, compared to 2.02% for the same period in 2024. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)(6) was 53.52% for the three months ended June 30, 2025 compared to 57.86% for the same respective period in 2024. Income Tax Expense For the three months ended June 30, 2025, the Company's income tax expense was $30.5 million with an effective tax rate of 29.7%, compared with an income tax benefit of $9.8 million for the three months ended June 30, 2024. The increase in tax expense for the three months ended June 30, 2025, compared with the same period last year was largely due to an increase in taxable income in the quarter. The prior year income tax benefit was largely due to a $5.3 million tax benefit related to the revaluation of deferred tax assets to reflect the imposition by the state of New Jersey of a 2.5% Corporate Transit Fee in the quarter, effective January 1, 2024, combined with a decrease in taxable income in the prior year quarter as a result of additional expenses from the Lakeland merger. Six months ended June 30, 2025 compared to the six months ended June 30, 2024 For the six months ended June 30, 2025, net income totaled $136.0 million, or $1.04 per basic and diluted share, compared to net income of $20.6 million, or $0.23 per basic and diluted share, for the six months ended June 30, 2024. While there were no transaction costs related to our merger with Lakeland for the 2025 period, those costs totaled $81.2 million, including an initial CECL provision for credit losses recorded as part of the Lakeland merger, for the six months ended June 30, 2024. Net Interest Income and Net Interest Margin Net interest income increased $133.6 million to $368.8 million for the six months ended June 30, 2025, from $235.2 million for same period in 2024. Net interest income for the six months ended June 30, 2025 was largely driven by growth in average earning assets and net assets added in the May 16, 2024 acquisition of Lakeland and related accretion of purchase accounting adjustments. For the six months ended June 30, 2025, the net interest margin increased 27 basis points to 3.35%, compared to 3.08% for the six months ended June 30, 2024. The weighted average yield on interest earning assets increased 22 basis points to 5.65% for the six months ended June 30, 2025, compared to 5.43% for the six months ended June 30, 2024, while the weighted average cost of interest-bearing liabilities decreased five basis points to 2.92% for the six months ended June 30, 2025, compared to 2.97% for the same period last year. The average cost of interest-bearing deposits decreased 11 basis points to 2.63% for the six months ended June 30, 2025, compared to 2.74% for the same period last year. Average non-interest-bearing demand deposits increased $1.24 billion to $3.71 billion for the six months ended June 30, 2025, compared with $2.47 billion for the six months ended June 30, 2024. The average cost of total deposits, including non-interest-bearing deposits, was 2.10% for the six months ended June 30, 2025, compared with 2.19% for the six months ended June 30, 2024. The average cost of borrowings for the six months ended June 30, 2025 was 3.86%, compared to 3.75% for the same period last year. Provision for Credit Losses on Loans For the six months ended June 30, 2025, the Company recorded a $2.3 million benefit to the provision for credit losses on loans, compared with a provision for credit losses on loans of $66.3 million for the six months ended June 30, 2024. The benefit to the provision for credit losses on loans for the six months ended June 30, 2025 was primarily attributable to an improved economic forecast and an overall improvement in the Company's asset quality, partially offset by an increase in specific reserves required on individually analyzed loans. The provision for credit losses on loans for the prior year period was primarily attributable to an initial CECL provision for credit losses of $60.1 million, recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. For the six months ended June 30, 2025, net charge-offs totaled $3.2 million or an annualized three basis points of average loans, compared with net charge-offs of $4.6 million, or an annualized four basis points of average loans, for the six months ended June 30, 2024. Non-Interest Income and Expense For the six months ended June 30, 2025, non-interest income totaled $54.1 million, an increase of $11.0 million compared to the same period in 2024. Fee income increased $5.8 million to $20.4 million for the six months ended June 30, 2025, compared to the same period in 2024, primarily due to increases in deposit fee income, debit and credit card related fee income and loan related fee income resulting from the Lakeland merger. Net gains on securities transactions increased $3.1 million for the six months ended June 30, 2025, primarily due to a prior year $2.8 million loss on the sale of subordinated debt issued by Lakeland from the Provident investment portfolio prior to the merger. Other income increased $2.3 million to $4.1 million for the six months ended June 30, 2025, compared to $1.8 million for the same period in 2024, primarily due to an increase in gains on sales of SBA and mortgage loans. Additionally, insurance agency income increased $1.3 million to $10.6 million for the six months ended June 30, 2025, compared to $9.3 million for the same period in 2024, largely due to increases in contingent commissions, retention revenue and new business activity. Partially offsetting these increases in non-interest income, wealth management income decreased $982,000 to $14.3 million for the six months ended June 30, 2025, compared to the same period in 2024, mainly due to a decrease in the average market value of assets under management during the period, while BOLI income decreased $462,000 to $4.7 million for the six months ended June 30, 2025, compared to the same period in 2024, primarily due to a decrease in benefit claims recognized, combined with lower equity valuations. Non-interest expense totaled $230.9 million for the six months ended June 30, 2025, an increase of $43.7 million, compared to $187.2 million for the six months ended June 30, 2024. Compensation and benefits expense increased $30.7 million to $125.6 million for the six months ended June 30, 2025, compared to $94.9 million for the six months ended June 30, 2024, primarily attributable to the addition of Lakeland personnel. Amortization of intangibles increased $11.8 million to $19.0 million for the six months ended June 30, 2025, compared to $7.2 million for the six months ended June 30, 2024, largely due to core deposit intangible amortization related to Lakeland. Other operating expenses increased $9.3 million to $30.9 million for the three months ended June 30, 2025, compared to $21.6 million for the same period in 2024, primarily due to a $2.7 million write-down on a foreclosed property, combined with the addition of Lakeland. Net occupancy expense increased $7.3 million to $26.9 million for the six months ended June 30, 2025, compared to the same period in 2024, primarily due to increases in depreciation and maintenance expense related to the addition of Lakeland. Data processing expense increased $4.0 million to $19.2 million for the six months ended June 30, 2025, compared to $15.2 million for the six months ended June 30, 2024, primarily due to the addition of Lakeland, while FDIC insurance increased $1.4 million to $6.7 million for the six months ended June 30, 2025, primarily due to the addition of Lakeland. Partially offsetting these increases to non-interest expense, merger-related expenses decreased $21.1 million for the six months ended June 30, 2025. Income Tax Expense For the six months ended June 30, 2025, the Company's income tax expense was $58.3 million with an effective tax rate of 30.0%, compared with income tax expense of $1.1 million for the six months ended June 30, 2024. The increase in tax expense for the six months ended June 30, 2025 compared with the same period last year was largely due to an increase in taxable income, combined with a prior year $5.3 million tax benefit related to the revaluation of deferred tax assets to reflect the imposition by the State of New Jersey of a 2.5% Corporate Transit Fee, effective January 1, 2024. The prior year income tax expense was favorably impacted by the Lakeland merger. Asset Quality The Company’s total non-performing loans as of June 30, 2025 were $107.2 million, or 0.56% of total loans held for investment, compared to $103.2 million, or 0.54% of total loans as of March 31, 2025 and $72.1 million, or 0.37% of total loans as of December 31, 2024. The $3.9 million increase in non-performing loans as of June 30, 2025, compared to the trailing quarter, consisted of a $3.1 million increase in non-performing commercial loans, a $2.0 million increase in non-performing residential mortgage loans and a $195,000 increase in non-performing consumer loans, partially offset by a $1.2 million decrease in non-performing multi-family loans, a $103,000 decrease in non-performing commercial mortgage loans and a $28,000 decrease in non-performing construction loans. As of June 30, 2025, impaired loans totaled $92.7 million with related specific reserves of $11.4 million, compared with impaired loans totaling $86.1 million with related specific reserves of $7.9 million as of March 31, 2025. As of December 31, 2024, impaired loans totaled $55.4 million with related specific reserves of $7.5 million. As of June 30, 2025, the Company’s allowance for credit losses related to the loan portfolio was 0.98% of total loans, compared to 1.02% and 1.04% as of March 31, 2025 and December 31, 2024, respectively. The allowance for credit losses decreased $5.6 million to $187.9 million as of June 30, 2025, from $193.4 million as of December 31, 2024. The decrease in the allowance for credit losses on loans as of June 30, 2025 compared to December 31, 2024 was due to a $2.3 million benefit to the provision for credit losses on loans, combined with net charge-offs of $3.2 million. The following table sets forth accruing past due loans and non-accrual loans held for investment on the dates indicated, as well as delinquency statistics and certain asset quality ratios. June 30, 2025 March 31, 2025 December 31, 2024 Number of Loans 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 1 $129 8 $13,696 7 $8,538 Multi-family mortgage loans — — 1 7,433 — — Construction loans — — — — — — Residential mortgage loans 20 5,541 27 6,905 22 6,388 Total mortgage loans 21 5,670 36 28,034 29 14,926 Commercial loans 4 997 23 11,372 9 3,026 Consumer loans 30 1,592 22 1,604 47 3,152 Total 30 to 59 days past due 55 $8,259 95 $42,060 85 $21,104 60 to 89 days past due: Commercial mortgage loans 1 $347 2 $196 4 $3,954 Multi-family mortgage loans 1 431 — — — — Construction loans — — — — — — Residential mortgage loans 16 3,816 18 5,009 17 5,049 Total mortgage loans 18 4,594 20 5,205 21 9,003 Commercial loans 13 4,389 8 1,955 3 1,117 Consumer loans 9 699 12 854 15 856 Total 60 to 89 days past due 40 9,682 47 8,908 39 10,976 Total accruing past due loans 95 $17,941 142 $50,968 124 $32,080 Non-accrual: Commercial mortgage loans 15 $42,828 18 $42,931 17 $20,883 Multi-family mortgage loans 3 6,143 5 7,294 6 7,498 Construction loans 3 18,901 3 18,929 2 13,246 Residential mortgage loans 25 7,209 22 5,246 23 4,535 Total mortgage loans 46 75,081 48 74,400 48 46,162 Commercial loans 34 30,531 32 23,580 32 21,892 Consumer loans 21 1,547 19 1,352 23 1,656 Total non-accrual loans 101 $107,159 99 $99,332 103 $69,710 Non-performing loans to total loans held for investment 0.56% 0.53% 0.37%Allowance for loan losses to total non-performing loans 175.32% 185.78% 268.43%Allowance for loan losses to total loans held for investment 0.98% 1.02% 1.04% There were no non-accrual or past due loans held for sale as of June 30. 2025. As of March 31, 2025 and December 31, 2024, total non-accrual loans held for sale, which are not in the tables above, totaled $3.9 million and $2.4 million, respectively. Additionally, as of March 31, 2025 and December 31, 2024, total past due loans held for sale, including non-accrual loans held for sale, totaled $5.8 million and $4.8 million, respectively. As of June 30, 2025 and December 31, 2024, the Company held foreclosed assets of $1.0 million and $9.5 million, respectively. During the six months ended June 30, 2025, there was a write-down of one foreclosed commercial property of $2.7 million based on a contracted sales price. The sale of this property closed in the second quarter of 2025, which reduced foreclosed assets by an additional $5.8 million. Foreclosed assets as of June 30, 2025 were comprised of one commercial property. Total non-performing assets as of June 30, 2025 increased $26.6 million to $108.1 million, or 0.44% of total assets, from $81.5 million, or 0.34% of total assets at December 31, 2024. Balance Sheet Summary Total assets as of June 30, 2025 were $24.55 billion, a $495.5 million increase from December 31, 2024. The increase in total assets was primarily due to a $445.5 million increase in loans held for investment and a $246.5 million increase in total investments, partially offset by a $155.5 million decrease in loans held for sale, and decreases in intangibles and other assets. The Company’s loans held for investment portfolio totaled $19.10 billion as of June 30, 2025 and $18.66 billion as of December 31, 2024. The loan portfolio consisted of the following: June 30, 2025 March 31, 2025 December 31, 2024 (Dollars in thousands)Mortgage loans: Commercial$7,313,904 $7,295,651 $7,228,078 Multi-family 3,517,509 3,458,190 3,382,933 Construction 751,914 756,356 823,503 Residential 1,985,355 1,994,404 2,010,637 Total mortgage loans 13,568,682 13,504,601 13,445,151 Commercial loans 4,688,888 4,506,215 4,447,672 Mortgage warehouse lines 240,134 176,687 160,928 Consumer loans 617,190 613,453 613,819 Total gross loans 19,114,894 18,800,956 18,667,570 Premiums on purchased loans 1,308 1,337 1,338 Net deferred fees and unearned discounts (11,372) (10,922) (9,538)Total loans$19,104,830 $18,791,371 $18,659,370 During the three months ended June 30, 2025, the loans held for investment portfolio had net increases of $182.7 million of commercial loans, $63.4 million of mortgage warehouse lines, $59.3 million of multi-family loans and $18.3 million of commercial mortgage loans, partially offset by net decreases of $9.0 million of residential mortgage loans, $4.4 million of construction loans and $3.7 million of consumer loans. Total commercial loans, including mortgage warehouse lines, commercial mortgage, multi-family and construction loans, represented 86.4% of the loan portfolio as of June 30, 2025, compared to 85.9% as of December 31, 2024. For the six months ended June 30, 2025, loan funding, including advances on lines of credit, totaled $4.30 billion, compared with $2.53 billion for the same period in 2024. As of June 30, 2025, the Company’s unfunded loan commitments totaled $3.74 billion, including commitments of $2.30 billion in commercial loans, $511.9 million in construction loans and $212.7 million in commercial mortgage loans. Unfunded loan commitments as of December 31, 2024 and June 30, 2024 were $2.73 billion and $3.01 billion, respectively. The loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $2.59 billion as of June 30, 2025, compared to $1.79 billion and $1.67 billion as of December 31, 2024 and June 30, 2024, respectively. Total investment securities were $3.47 billion as of June 30, 2025, a $246.5 million increase from December 31, 2024. This increase was primarily due to purchases of mortgage-backed securities and a decrease in unrealized losses on available for sale debt securities. Total deposits increased $84.7 million during the six months ended June 30, 2025, to $18.71 billion. Total time deposits increased $99.3 million to $3.27 billion as of June 30, 2025, while total savings and demand deposit accounts decreased $14.6 million to $15.44 billion as of June 30, 2025. The increase in time deposits consisted of a $108.1 million increase in brokered time deposits, partially offset by an $8.8 million decrease in retail time deposits. The decrease in savings and demand deposits was largely attributable to a $50.7 million decrease in savings deposits and a $36.8 million decrease in non-interest bearing demand deposits, partially offset by a $52.2 million increase in money market deposits and a $20.7 million increase in interest bearing demand deposits. Borrowed funds increased $354.2 million during the six months ended June 30, 2025, to $2.37 billion. Borrowed funds represented 9.7% of total assets as of June 30, 2025, an increase from 8.4% as of December 31, 2024. Stockholders’ equity increased $106.3 million during the six months ended June 30, 2025, to $2.71 billion, primarily due to net income earned for the period and a decrease in unrealized losses on available for sale debt securities, partially offset by cash dividends paid to stockholders. For the three and six months ended June 30, 2025, common stock repurchases totaled 55,826 shares at an average cost of $17.83 per share and 156,570 shares at an average cost of $18.07 per share, respectively, all of which were made in connection with withholding to cover income taxes on the vesting of stock-based compensation. As of June 30, 2025, approximately 816,000 shares remained eligible for repurchase under the current stock repurchase authorization. Book value per share and tangible book value per share(1) as of June 30, 2025 were $20.73 and $14.60, respectively, compared with $19.93 and $13.66, respectively, as of December 31, 2024. About the Company Provident Financial Services, Inc. is the holding company for Provident Bank, a community-oriented bank offering "Commitment you can count on" since 1839. Provident Bank provides a comprehensive array of financial products and services through its network of branches throughout New Jersey, Bucks, Lehigh and Northampton counties in Pennsylvania, as well as Orange, Queens and Nassau Counties in New York. The Bank also provides fiduciary and wealth management services through its wholly owned subsidiary, Beacon Trust Company and insurance services through its wholly owned subsidiary, Provident Protection Plus, Inc. Post Earnings Conference Call Representatives of the Company will hold a conference call for investors on Thursday, July 24, 2025 at 2:00 p.m. Eastern Time to discuss the Company’s financial results for the quarter ended June 30, 2025. The call may be accessed by dialing 1-888-412-4131 (United States Toll Free) and 1-646-960-0134 (United States Local). Speakers will need to enter conference ID code (3610756) before being met by a live operator. Internet access to the call is also available (listen only) at provident.bank by going to Investor Relations and clicking on "Webcast." A supplemental 2nd Quarter results investor presentation is also available on our investor relations website under “Presentations.” Forward Looking Statements Certain statements contained herein are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” "project," "intend," “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those set forth in Item 1A of the Company's Annual Report on Form 10-K, as supplemented by its Quarterly Reports on Form 10-Q, and those related to the economic environment, particularly in the market areas in which the Company operates, inflation and unemployment, competitive products and pricing, real estate values, fiscal and monetary policies of the U.S. Government, tariffs, the effects of the recent turmoil in the banking industry, changes in accounting policies and practices that may be adopted by the regulatory agencies and the accounting standards setters, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, potential goodwill impairment, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets, the availability of and costs associated with sources of liquidity, and the impact of a potential shutdown of the federal government. The Company cautions readers not to place undue reliance on any such forward-looking statements which speak only as of the date they are made. The Company advises readers that the factors listed above could affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not assume any duty, and does not undertake, to update any forward-looking statements to reflect events or circumstances after the date of this statement. Footnotes (1) Annualized adjusted pre-tax, pre-provision return on average assets, annualized return on average tangible equity, tangible common equity capital ratio, tangible book value per share, annualized adjusted non-interest expense as a percentage of average assets and the efficiency ratio are non-GAAP financial measures. Please refer to the Notes following the Consolidated Financial Highlights which contain the reconciliation of GAAP to non-GAAP financial measures and the associated calculations. PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARYConsolidated Financial Highlights(Dollars in Thousands, except share data) (Unaudited) At or for the Three Months Ended At or for the Six Months Ended June 30, March 31, June 30, June 30, June 30, 2025 2025 2024 2025 2024 Statement of Income Net interest income$187,094 $181,728 $141,506 $368,822 $235,176 Provision (benefit) charge for credit losses (2,888) 638 69,705 (2,250) 69,385 Non-interest income 27,075 27,030 22,275 54,105 43,081 Non-interest expense 114,614 116,267 115,394 230,881 187,221 Income (loss) before income tax expense 102,443 91,853 (21,318) 194,296 21,651 Net income (loss) 71,981 64,028 (11,485) 136,009 20,596 Diluted earnings per share$0.55 $0.49 $(0.11) $1.04 $0.23 Interest rate spread 2.74% 2.73% 2.58% 2.73% 2.46%Net interest margin 3.36% 3.34% 3.21% 3.35% 3.08% Profitability Annualized return on average assets 1.19% 1.08% (0.24)% 1.13% 0.25%Annualized adjusted return on average assets (1) 1.19% 1.11% 0.06% 1.15% 0.49%Annualized return on average equity 10.76% 9.84% (2.17)% 10.31% 2.17%Annualized adjusted return on average equity (1) 10.76% 10.13% 0.53% 10.45% 4.28%Annualized return on average tangible equity (4) 16.79% 15.73% (3.15)% 16.27% 3.06%Annualized adjusted return on average tangible equity (1) 16.79% 16.15% 0.001% 16.48% 6.27%Annualized adjusted non-interest expense to average assets (4) 1.89% 1.92% 2.02% 1.92% 2.01%Efficiency ratio (6) 53.52% 54.43% 57.86% 54.60% 59.06% Asset Quality Non-accrual loans $103,224 $107,159 $67,868 90+ and still accruing — — — Non-performing loans 103,224 107,159 67,868 Foreclosed assets 6,755 963 11,119 Non-performing assets 109,979 108,122 78,987 Non-performing loans to total loans held for investment 0.53% 0.56% 0.36%Non-performing assets to total assets 0.45% 0.44% 0.33%Allowance for loan losses $191,770 $187,871 $188,331 Allowance for loan losses to total non-performing loans 185.78% 175.32% 277.50%Allowance for loan losses to total loans held for investment 1.02% 0.98% 1.00%Net loan charge-offs$1,249 $1,987 $2,680 $3,236 $4,622 Annualized net loan charge-offs to average total loans 0.03% 0.04% 0.07% 0.03% 0.07% Average Balance Sheet Data Assets$24,349,808 $24,049,318 $19,197,041 $24,200,393 $16,645,404 Loans, net 18,827,305 18,590,877 14,649,413 18,709,743 12,659,202 Earning assets 22,329,230 21,946,053 17,385,819 22,138,700 15,093,217 Core deposits 15,222,027 15,497,343 12,257,244 15,358,925 10,693,244 Borrowings 2,490,379 1,918,069 2,158,193 2,205,805 2,049,587 Interest-bearing liabilities 17,612,934 17,297,892 13,856,039 17,456,284 11,965,072 Stockholders' equity 2,684,342 2,638,361 2,127,469 2,661,478 1,912,820 Average yield on interest-earning assets 5.68% 5.63% 5.67% 5.65% 5.43%Average cost of interest-bearing liabilities 2.94% 2.90% 3.09% 2.92% 2.97% Notes and Reconciliation of GAAP and Non-GAAP Financial Measures(Dollars in Thousands, except share data) The Company has presented the following non-GAAP (U.S. Generally Accepted Accounting Principles) financial measures because it believes that these measures provide useful and comparative information to assess trends in the Company’s results of operations and financial condition. Presentation of these non-GAAP financial measures is consistent with how the Company evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Company’s industry. Investors should recognize that the Company’s presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and the Company strongly encourages a review of its condensed consolidated financial statements in their entirety. (1) Annualized Adjusted Return on Average Assets, Equity and Tangible Equity Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2025 2025 2024 2025 2024 Net Income $71,981 $64,028 $(11,485) $136,009 $20,596 Write-down on ORE property — 2,690 — 2,690 — Merger-related transaction costs — — 18,915 — 21,117 Less: income tax expense — (809) (4,625) (809) (4,649)Annualized adjusted net income $71,981 65,909 $2,805 $137,890 $37,064 Less: Amortization of Intangibles (net of tax) 6,639 6,642 4,532 $13,281.5018 $5,025.1308 Annualized adjusted net income for annualized adjusted return on average tangible equity $78,620 $72,551 $7,337 $151,171 $42,089 Annualized Adjusted Return on Average Assets 1.19% 1.11% 0.06% 1.15% 0.45%Annualized Adjusted Return on Average Equity 10.76% 10.13% 0.53% 10.45% 3.90%Annualized Adjusted Return on Average Tangible Equity 16.79% 16.15% 2.01% 16.48% 6.25% (2) Annualized adjusted pre-tax, pre-provision ("PTPP") returns on average assets, average equity and average tangible equity Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2025 2025 2024 2025 2024 Net income (loss) $71,981 $64,028 $(11,485) $136,009 $20,596 Adjustments to net income (loss): Provision (benefit) charge for credit losses (2,888) 638 69,705 (2,250) 69,385 Write-down on ORE property 2,690 Net loss on Lakeland bond sale — — 2,839 — 2,839 Merger-related transaction costs — — 18,915 — 21,117 Income tax expense (benefit) 30,462 27,825 (9,833) 58,287 1,055 PTPP income $99,555 $95,181 $70,141 $194,736 $114,992 Annualized PTPP income $399,314 $386,012 $282,106 $392,700 $231,248 Average assets $24,349,808 $24,049,318 $19,197,041 $24,200,393 $16,645,404 Average equity $2,684,342 $2,638,361 $2,127,469 $2,661,478 $1,912,820 Average tangible equity $1,877,923 $1,822,407 $1,468,630 $1,850,318 $1,354,553 Annualized PTPP return on average assets 1.64% 1.61% 1.47% 1.62% 1.39%Annualized PTPP return on average equity 14.88% 14.63% 13.26% 14.75% 12.09%Annualized PTPP return on average tangible equity 21.26% 21.18% 19.21% 21.22% 17.07% (3) Tangible Common Equity Ratio, Book and Tangible Book Value per Share June 30, March 31, December 31, 2025 2025 2024 Total assets $24,547,286 $24,224,759 $24,051,825 Less: total intangible assets 800,232 809,725 819,230 Total tangible assets $24,547,286 $24,224,759 $24,051,825 Total stockholders' equity $2,707,555 $2,658,794 $2,601,207 Less: total intangible assets 800,232 809,725 819,230 Total tangible stockholders' equity $1,907,323 $1,849,069 $1,781,977 Tangible common equity ratio 8.03% 7.90% 7.67%Shares outstanding 130,624,243 130,661,195 130,489,493 Book value per share (total stockholders' equity/shares outstanding) $20.73 $20.35 $19.93 Tangible book value per share (total tangible stockholders' equity/shares outstanding) $14.60 $14.15 $13.66 (4) Annualized Return on Average Tangible Equity Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2025 2025 2024 2025 2024 Total average stockholders' equity $2,684,342 $2,638,361 $2,127,469 $2,661,478 $1,912,820 Less: total average intangible assets 806,419 815,954 658,839 811,160 558,267 Total average tangible stockholders' equity $1,877,923 $1,822,407 $1,468,630 $1,850,318 $1,354,553 Net income (loss) $71,981 $64,028 $(11,485) $136,009 $20,596 Less: Amortization of Intangibles, net of tax 6,639 6,642,149 4,532 13,282 5,025 Total net income (loss) $78,620 $70,670 $(6,953) $149,291 $25,621 Annualized return on average tangible equity (net income/total average tangible stockholders' equity) 16.79% 15.73% (1.90)% 16.27% 3.80% (5) Annualized Adjusted Non-Interest Expense to Average Assets Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2025 2025 2024 2025 2024 Reported non-interest expense $114,614 $116,267 $115,394 $230,881 $187,221 Adjustments to non-interest expense: Write-down on ORE property — 2,690 — — — Merger-related transaction costs — — 18,915 — 21,117 Adjusted non-interest expense $114,614 $113,577 $96,479 $230,881 $166,104 Annualized adjusted non-interest expense $459,715 $388,036 $388,036 $465,589 $334,033 Average assets $24,349,808 $24,049,318 $19,197,041 $24,200,393 $16,645,404 Annualized adjusted non-interest expense/average assets 1.89% 1.92% 2.02% 1.92% 2.01% (6) Efficiency Ratio Calculation Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2025 2025 2024 2025 2024 Net interest income $187,094 $181,728 $141,506 $368,822 $235,176 Reported non-interest income 27,075 27,030 22,275 54,105 43,081 Adjustments to non-interest income: Net (gain) loss on securities transactions — (87) (2,973) (87) 2,974 Adjusted non-interest income 27,075 26,943 25,248 54,018 46,055 Total income $214,169 $208,671 $166,754 $422,840 $281,231 Adjusted non-interest expense $114,614 $113,577 $96,479 $230,881 $166,104 Efficiency ratio (adjusted non-interest expense/income) 53.52% 54.43% 57.86% 54.60% 59.06% PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARYConsolidated Statements of Financial ConditionJune 30, 2025 (Unaudited) and December 31, 2024(Dollars in Thousands) AssetsJune 30, 2025 December 31, 2024Cash and cash equivalents$258,925 $205,939 Available for sale debt securities, at fair value 3,019,796 2,768,915 Held to maturity debt securities, net of allowance (fair value of $20,000 as of June 30, 2025 (unaudited) and $14,000 as of December 31, 2024) 308,704 327,623 Equity securities, at fair value 19,410 19,110 Federal Home Loan Bank stock 127,021 112,767 Loans held for sale 6,922 162,453 Loans held for investment 19,104,830 18,659,370 Less allowance for credit losses 187,871 193,432 Net loans 18,923,881 18,628,391 Foreclosed assets, net 963 9,473 Banking premises and equipment, net 115,709 119,622 Accrued interest receivable 92,714 91,160 Intangible assets 800,232 819,230 Bank-owned life insurance 409,949 405,893 Other assets 469,982 543,702 Total assets$24,547,286 $24,051,825 Liabilities and Stockholders' Equity Deposits: Demand deposits$13,812,120 $13,775,991 Savings deposits 1,628,971 1,679,667 Certificates of deposit of $250,000 or more 842,389 789,342 Other time deposits 2,425,044 2,378,813 Total deposits 18,708,524 18,623,813 Mortgage escrow deposits 50,291 42,247 Borrowed funds 2,374,660 2,020,435 Subordinated debentures 404,098 401,608 Other liabilities 302,158 362,515 Total liabilities 21,839,731 21,450,618 Stockholders' equity: Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued — — Common stock, $0.01 par value, 200,000,000 shares authorized, 137,565,966 shares issued and 130,624,243 shares outstanding as of June 30, 2025 and 130,489,493 outstanding as of December 31, 2024 1,376 1,376 Additional paid-in capital 1,839,314 1,834,495 Retained earnings 1,061,897 989,111 Accumulated other comprehensive loss (103,770) (135,355)Treasury stock (91,262) (88,420)Total stockholders' equity 2,707,555 2,601,207 Total liabilities and stockholders' equity$24,547,286 $24,051,825 PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARYConsolidated Statements of IncomeThree months ended June 30, 2025, March 31, 2025 and June 30, 2024, and six months ended June 30, 2025 and 2024 (Unaudited)(Dollars in Thousands, except per share data) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2025 2025 2024 2025 2024 Interest and dividend income: Real estate secured loans$192,792 $187,054 $156,318 $379,845 $263,774 Commercial loans 78,854 75,819 58,532 154,673 94,632 Consumer loans 10,464 10,158 8,351 20,623 12,874 Available for sale debt securities, equity securities and Federal Home Loan Bank stock 31,444 29,644 20,394 61,088 32,724 Held to maturity debt securities 1,966 1,996 2,357 3,962 4,625 Deposits, federal funds sold and other short-term investments 788 675 1,859 1,463 3,041 Total interest income 316,308 305,346 247,811 621,654 411,670 Interest expense: Deposits 96,257 97,420 81,058 193,678 133,592 Borrowed funds 24,470 17,778 20,566 42,247 37,949 Subordinated debt 8,487 8,420 4,681 16,907 4,953 Total interest expense 129,214 123,618 106,305 252,832 176,494 Net interest income 187,094 181,728 141,506 368,822 235,176 Provision (benefit) charge for credit losses (2,888) 638 69,705 (2,250) 69,385 Net interest income after provision for credit losses 189,982 181,090 71,801 371,072 165,791 Non-interest income: Fees 10,736 9,655 8,699 20,391 14,611 Wealth management income 6,948 7,328 7,769 14,275 15,257 Insurance agency income 4,942 5,651 4,488 10,593 9,281 Bank-owned life insurance 2,585 2,092 3,323 4,678 5,140 Net gain (loss) on securities transactions — 87 (2,973) 87 (2,974)Other income 1,864 2,217 969 4,081 1,766 Total non-interest income 27,075 27,030 22,275 54,105 43,081 Non-interest expense: Compensation and employee benefits 63,249 62,366 54,888 125,615 94,936 Net occupancy expense 13,011 13,927 11,142 26,938 19,662 Data processing expense 9,599 9,605 8,433 19,203 15,217 FDIC Insurance 3,341 3,385 3,100 6,727 5,372 Amortization of intangibles 9,497 9,501 6,483 18,998 7,188 Advertising and promotion expense 1,429 1,060 1,171 2,489 2,137 Merger-related expenses — — 18,915 — 21,117 Other operating expenses 14,488 16,423 11,262 30,911 21,592 Total non-interest expense 114,614 116,267 115,394 230,881 187,221 Income (loss) before income tax expense 102,443 91,853 (21,318) 194,296 21,651 Income tax expense (benefit) 30,462 27,825 (9,833) 58,287 1,055 Net income (loss)$71,981 $64,028 $(11,485) $136,009 $20,596 Basic earnings per share$0.55 $0.49 $(0.11) $1.04 $0.23 Average basic shares outstanding 130,484,287 130,325,393 102,957,521 130,405,490 89,108,775 Diluted earnings per share$0.55 $0.49 $(0.11) $1.04 $0.23 Average diluted shares outstanding 130,500,143 130,380,475 102,957,521 130,440,958 89,116,590 PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARYNet Interest Margin AnalysisQuarterly Average Balances(Dollars in Thousands) (Unaudited) June 30, 2025 March 31, 2025 June 30, 2024 Average Balance Interest Average Yield/Cost Average Balance Interest Average Yield/Cost Average Balance Interest Average Yield/CostInterest-Earning Assets: Deposits$75,714 $788 4.21% $80,074 $675 4.21% $40,228 $1,859 5.38%Available for sale debt securities 2,958,325 29,306 3.96% 2,827,699 27,621 3.89% 2,244,725 17,646 3.14%Held to maturity debt securities, net (1) 315,204 1,966 2.49% 320,036 1,996 2.50% 352,216 2,357 2.68%Equity securities, at fair value 19,235 — —% 19,840 — —% 10,373 — —%Total securities 3,292,764 31,272 3.80% 3,167,575 29,617 3.73% 2,607,314 20,003 3.07%Federal Home Loan Bank stock 133,447 2,138 6.44% 107,527 2,023 7.53% 88,864 2,747 12.36%Net loans: (2) Total mortgage loans 13,398,650 192,792 5.77% 13,297,168 187,054 5.70% 10,674,109 156,318 5.81%Total commercial loans 4,816,237 78,854 6.57% 4,684,572 75,819 6.56% 3,514,602 58,532 6.62%Total consumer loans 612,418 10,464 6.85% 609,137 10,158 6.76% 460,702 8,351 7.29%Total net loans 18,827,305 282,110 6.01% 18,590,877 273,031 5.95% 14,649,413 223,201 6.05%Total interest-earning assets$22,329,230 $316,308 5.68% $21,946,053 $305,346 5.63% $17,385,819 $247,810 5.67% Non-Interest Earning Assets: Cash and due from banks 150,464 134,205 37,621 Other assets 1,870,114 1,969,060 1,773,601 Total assets$24,349,808 $24,049,318 $19,197,041 Interest-Bearing Liabilities: Demand deposits$9,874,149 $64,803 2.63% $10,095,570 $65,433 2.63% $7,935,543 $58,179 2.95%Savings deposits 1,647,746 900 0.22% 1,682,596 924 0.22% 1,454,784 832 0.23%Time deposits 3,197,374 30,555 3.83% 3,199,620 31,063 3.94% 2,086,433 22,047 4.25%Total deposits 14,719,269 96,258 2.62% 14,977,786 97,420 2.64% 11,476,760 81,058 2.84% Borrowed funds 2,490,379 24,470 3.94% 1,918,069 17,778 3.76% 2,158,193 20,565 3.83%Subordinated debentures 403,286 8,487 8.44% 402,037 8,420 8.49% 221,086 4,681 8.52%Total interest-bearing liabilities 17,612,934 129,215 2.94% 17,297,892 123,618 2.90% 13,856,039 106,304 3.09% Non-Interest Bearing Liabilities: Non-interest bearing deposits 3,700,132 3,719,177 2,866,917 Other non-interest bearing liabilities 352,400 393,888 346,616 Total non-interest bearing liabilities 4,052,532 4,113,065 3,213,533 Total liabilities 21,665,466 21,410,957 17,069,572 Stockholders' equity 2,684,342 2,638,361 2,127,469 Total liabilities and stockholders' equity$24,349,808 $24,049,318 $19,197,041 Net interest income $187,093 $181,728 $141,506 Net interest rate spread 2.74% 2.73% 2.58%Net interest-earning assets$4,716,296 $4,648,161 $3,529,780 Net interest margin (3) 3.36% 3.34% 3.21% Ratio of interest-earning assets to total interest-bearing liabilities1.27x 1.27x 1.25x (1)Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses.(2)Average outstanding balances are net of the allowance for loan losses, deferred loan fees and expenses, loan premiums and discounts and include non-accrual loans.(3)Annualized net interest income divided by average interest-earning assets. The following table summarizes the quarterly net interest margin for the previous five quarters. 6/30/25 3/31/25 12/31/24 9/30/24 6/30/24 2nd Qtr. 1st Qtr. 4th Qtr. 3rd Qtr. 2nd Qtr.Interest-Earning Assets: Securities3.80% 3.73% 3.55% 3.56% 3.07%Net loans6.01% 5.95% 5.99% 6.21% 6.05%Total interest-earning assets5.68% 5.63% 5.66% 5.84% 5.67% Interest-Bearing Liabilities: Deposits2.62% 2.64% 2.81% 2.96% 2.84%Borrowings3.94% 3.76% 3.64% 3.73% 3.83%Total interest-bearing liabilities2.94% 2.90% 3.03% 3.19% 3.09% Interest rate spread2.74% 2.73% 2.63% 2.65% 2.58%Net interest margin3.36% 3.34% 3.28% 3.31% 3.21% Ratio of interest-earning assets to interest-bearing liabilities1.27x 1.27x 1.27x 1.26x 1.25x PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARYNet Interest Margin AnalysisAverage Year to Date Balances(Dollars in Thousands) (Unaudited) June 30, 2025 June 30, 2024 Average Average Average Average Balance Interest Yield/Cost Balance Interest Yield/CostInterest-Earning Assets: Deposits$77,882 $1,463 4.21% $32,901 $3,041 5.38%Available for sale debt securities 2,893,373 56,927 3.91% 1,959,549 27,669 2.82%Held to maturity debt securities, net (1) 317,607 3,962 2.50% 354,731 4,625 2.61%Equity securities, at fair value 19,212 — —% 5,525 — —%Total securities 3,230,192 60,889 3.75% 2,319,805 32,294 2.78%Federal Home Loan Bank stock 120,883 4,161 6.92% 81,309 5,055 12.43%Net loans: (2) Total mortgage loans 13,351,451 379,845 5.73% 9,326,838 263,774 5.61%Total commercial loans 4,747,564 154,673 6.57% 2,953,842 94,632 6.39%Total consumer loans 610,728 20,623 6.81% 378,522 12,874 6.84%Total net loans 18,709,743 555,141 5.98% 12,659,202 371,280 5.83%Total interest-earning assets$22,138,700 $621,654 5.65% $15,093,217 $411,670 5.43% Non-Interest Earning Assets: Cash and due from banks 142,380 108,229 Other assets 1,919,313 1,443,958 Total assets$24,200,393 $16,645,404 Interest-Bearing Liabilities: Demand deposits$9,984,248 $130,235 2.63% $6,914,802 $99,745 2.90%Savings deposits 1,665,075 1,824 0.22% 1,308,983 1,469 0.23%Time deposits 3,198,491 61,618 3.88% 1,575,801 32,378 4.13%Total deposits 14,847,814 193,677 2.63% 9,799,586 133,592 2.74%Borrowed funds 2,205,805 42,247 3.86% 2,049,587 37,949 3.75%Subordinated debentures 402,665 16,907 8.47% 115,899 4,953 8.59%Total interest-bearing liabilities$17,456,284 $252,831 2.92% $11,965,072 $176,494 2.97% Non-Interest Bearing Liabilities: Non-interest bearing deposits 3,709,602 2,469,459 Other non-interest bearing liabilities 373,029 298,053 Total non-interest bearing liabilities 4,082,631 2,767,512 Total liabilities 21,538,915 14,732,584 Stockholders' equity 2,661,478 1,912,820 Total liabilities and stockholders' equity$24,200,393 $16,645,404 Net interest income $368,823 $235,176 Net interest rate spread 2.73% 2.46%Net interest-earning assets$4,682,416 $3,128,145 Net interest margin (3) 3.35% 3.08% Ratio of interest-earning assets to total interest-bearing liabilities1.27x 1.26x (1) Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses.(2) Average outstanding balance are net of the allowance for loan losses, deferred loan fees and expenses, loan premium and discounts and include non-accrual loans.(3) Annualized net interest income divided by average interest-earning assets. The following table summarizes the year-to-date net interest margin for the previous three years. Six Months Ended June 30, 2025 June 30, 2024 June 30, 2023Interest-Earning Assets: Securities3.75% 2.78% 2.32%Net loans5.98% 5.83% 5.18%Total interest-earning assets5.65% 5.43% 4.68% Interest-Bearing Liabilities: Deposits2.63% 2.74% 1.62%Borrowings3.86% 3.75% 3.01%Total interest-bearing liabilities2.92% 2.97% 1.84% Interest rate spread2.73% 2.46% 2.84%Net interest margin3.35% 3.08% 3.29% Ratio of interest-earning assets to interest-bearing liabilities1.27x 1.26x 1.33x SOURCE: Provident Financial Services, Inc.CONTACT: Investor Relations, 1-732-590-9300Web Site: http://www.Provident.Bank

Provident Financial Services, Inc. Reports Second Quarter Earnings

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