Provident Financial Services, Inc. (NYSE:PFS) (the “Company”)
reported net income of $32.1 million, or $0.43 per basic and
diluted share for the three months ended March 31, 2024, compared
to $27.3 million, or $0.36 per basic and diluted share, for the
three months ended December 31, 2023 and $40.5 million, or $0.54
per basic and diluted share, for the three months ended March 31,
2023. Net income for the trailing quarter ended December 31,
2023 was negatively impacted by a $3.0 million charge for
contingent litigation reserves and a $2.0 million write-down of a
foreclosed property. Transaction costs related to our pending
merger with Lakeland Bancorp, Inc. (“Lakeland”) totaled $2.2
million for the three months ended March 31, 2024, compared with
$2.5 million in the trailing quarter and $1.1 million for the
respective 2023 period. In addition, prior year earnings for the
three months ended March 31, 2023, included a $2.0 million gain
recognized from the sale of a foreclosed commercial property.
Performance Highlights for the
First Quarter of
2024
- The Company’s total
commercial and industrial ("C&I") loan portfolio increased
$72.1 million, or 11.5% annualized, to $2.51 billion as of
March 31, 2024, from $2.44 billion as of December 31,
2023.
- Net interest income
decreased $2.1 million to $93.7 million for the three months ended
March 31, 2024, from $95.8 million for the trailing quarter as a
result of one fewer day in the current quarter and higher funding
costs, which more than offset the benefits of favorable loan
repricing.
- The net interest
margin decreased five basis points to 2.87% for the quarter ended
March 31, 2024, from 2.92% for the trailing quarter.
- The weighted
average yield on interest-earning assets for the quarter ended
March 31, 2024 increased two basis points to 5.06%, compared
to the trailing quarter, while the weighted average cost of
interest-bearing liabilities for the quarter ended March 31,
2024 increased nine basis points to 2.80%, compared to the trailing
quarter. The increase in funding costs was attributable to a
decrease in lower-costing deposits, an increase in average
borrowings and unfavorable repricing of deposits, reflective of
current market conditions.
- As of
March 31, 2024, the Company's loan pipeline, consisting of
work-in-process and loans approved pending closing, totaled $1.08
billion, with a weighted average interest rate of 7.42%, compared
to $1.09 billion, with a weighted average interest rate of 7.08% as
of December 31, 2023.
- Asset quality
improved in the quarter, as non-performing loans as of
March 31, 2024 declined to $47.6 million, or 0.44% of total
loans, compared to $49.6 million, or 0.46% of total loans as of
December 31, 2023. Criticized and classified loans fell to
$226.3 million, or 2.09% of loans as of March 31, 2024, from
$241.3 million, or 2.22% of loans as of December 31,
2023.
- As of
March 31, 2024, CRE loans related to office properties totaled
$483.9 million, compared to $483.1 million as of December 31,
2023. This portfolio constitutes only 4.5% of total loans and has
an average loan size of $1.9 million, with just four relationships
greater than $10.0 million. Approximately 41.0% of the Company's
office loans are to medical offices and the portfolio does not have
significant central business district exposure. Delinquencies in
the office portfolio as of March 31, 2024 were limited to four
loans totaling $5.9 million.
- As of
March 31, 2024, Multi-family CRE loans on New York City
properties totaled $188.7 million, compared to $186.8 million as of
December 31, 2023. This portfolio constitutes only 1.7% of
total loans and has an average loan size of $2.8 million.
Approximately $117.4 million of these loans are collateralized by
rent stabilized apartments and all are performing.
- The Company
recorded a $200,000 provision for credit losses on loans for the
quarter ended March 31, 2024, compared to a $500,000 provision
for the trailing quarter. The decrease in the provision for credit
losses for the quarter was primarily attributable to an improved
economic forecast for the current quarter within our Current
Expected Credit Loss ("CECL") model, partially offset by an
increase in specific reserves on impaired credits. The allowance
for credit losses as a percentage of loans decreased to 0.98% as of
March 31, 2024, from 0.99% as of December 31, 2023.
- Wealth Management
and Insurance Agency income increased 8.3% and 16.9%, respectively,
versus the same period in 2023. Total non-interest income was 18.2%
of net revenue for the quarter ended March 31, 2024.
- The Company's
annualized adjusted pre-tax, pre-provision ("PTPP") return on
average assets(1) was 1.28% for the quarter ended March 31,
2024, compared to 1.25% for the quarter ended December 31,
2023.
- Annualized returns
on average assets, average equity and average tangible equity(1)
were 0.92%, 7.60% and 10.40%, respectively for the three months
ended March 31, 2024, compared with 0.77%, 6.60% and 9.15%,
respectively for the trailing quarter.
Anthony J. Labozzetta, President and Chief
Executive Officer commented, “Our first quarter results reflect
strong operating performance and returns despite continuing
pressure on funding costs and the net interest margin. Our team has
performed admirably to manage through these conditions and
continued to deliver exceptional customer service. Additionally,
our asset quality remains strong and our credit risk is well
managed, with limited exposure to the market segments of greatest
concern in the current operating environment.”
Regarding the Company's pending merger with
Lakeland, Mr. Labozzetta added, “We are delighted that all
regulatory approvals required for the merger have been obtained and
we are diligently moving forward with our subordinated debt
offering which is a required closing condition of the merger. We
are excited to complete the closing of the merger promptly to bring
together two prominent high performing banks with like-minded
cultures, unwavering commitment to employee and customer
experience, a dedication to serving our communities, and a keen
focus on financial performance and stockholder returns.”
Declaration of Quarterly
Dividend
The Company’s Board of Directors declared a
quarterly cash dividend of $0.24 per common share payable on May
31, 2024 to stockholders of record as of the close of business on
April 29, 2024.
Results of Operations
Three months ended March 31, 2024
compared to the three months ended December 31, 2023
For the three months ended March 31, 2024, net
income was $32.1 million, or $0.43 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.
Transaction costs related to our pending merger with Lakeland
totaled $2.2 million and $2.5 million for the three months ended
March 31, 2024 and December 31, 2023, respectively.
Net Interest Income and Net Interest
Margin
Net interest income decreased $2.1 million to
$93.7 million for the three months ended March 31, 2024, from $95.8
million for the trailing quarter. The decrease in net interest
income reflected one fewer calendar day in the first quarter and a
decrease in lower-costing deposits, combined with unfavorable
repricing of deposits, partially offset by the favorable repricing
of adjustable-rate loans.
The Company’s net interest margin decreased five
basis points to 2.87% for the quarter ended March 31, 2024,
from 2.92% for the trailing quarter. The weighted average yield on
interest-earning assets for the quarter ended March 31, 2024
increased two basis points to 5.06%, compared to the trailing
quarter. The weighted average cost of interest-bearing liabilities
for the quarter ended March 31, 2024 increased nine basis
points from the trailing quarter to 2.80%. The average cost of
interest-bearing deposits for the quarter ended March 31, 2024
increased 13 basis points to 2.60%, compared to 2.47% for the
trailing quarter. The average cost of total deposits, including
non-interest-bearing deposits, was 2.07% for the quarter ended
March 31, 2024, compared to 1.95% for the trailing quarter.
The average cost of borrowed funds for the quarter ended
March 31, 2024 was 3.60%, compared to 3.71% for the quarter
ended December 31, 2023.
Provision for Credit Losses
For the quarter ended March 31, 2024, the
Company recorded a $200,000 provision for credit losses on loans,
compared with a provision for credit losses of $500,000 for the
quarter ended December 31, 2023. The decrease in the provision
for credit losses for the quarter was primarily attributable to an
improved economic forecast for the current quarter within our CECL
model, partially offset by an increase in specific reserves on
impaired credits. For the three months ended March 31, 2024, net
charge-offs totaled $971,000, or an annualized 4 basis points of
average loans, compared with net charge-offs of $863,000, or an
annualized 3 basis points of average loans, for the trailing
quarter.
Non-Interest Income and
Expense
For the three months ended March 31, 2024,
non-interest income totaled $20.8 million, an increase of $1.8
million, compared to the trailing quarter. Insurance agency income
increased $2.0 million to $4.8 million for the three months ended
March 31, 2024, compared to the trailing quarter, mainly due to the
receipt of contingent commissions and additional business in the
current quarter. Wealth management income increased $645,000 to
$7.5 million for the three months ended March 31, 2024, compared to
the trailing quarter, mainly due to an increase in the average
market value of assets under management during the period.
Additionally, BOLI income increased $173,000 for the three months
ended March 31, 2024, compared to the trailing quarter, primarily
due to a benefit claim recognized in the current quarter. Partially
offsetting these increases to non-interest income, other income
decreased $829,000 to $798,000 for the three months ended March 31,
2024, compared to the trailing quarter, primarily due to a
reduction in gains on the sale of SBA loans, while fee income
decreased $190,000 to $5.9 million for the three months ended March
31, 2024, compared to the trailing quarter, primarily due to
decreases in loan related fees and debit card income.
Non-interest expense totaled $71.3 million for
the three months ended March 31, 2024, a decrease of $3.2 million,
compared to $74.5 million for the trailing quarter. Other operating
expense decreased $5.3 million to $10.3 million for the three
months ended March 31, 2024, compared to $15.6 million for the
trailing quarter, largely due to a prior quarter $3.0 million
charge for contingent litigation reserves, combined with a prior
quarter $2.0 million write-down of a foreclosed property. FDIC
insurance decreased $618,000 to $2.3 million for the three months
ended March 31, 2024, compared to the trailing quarter, primarily
due to the FDIC special assessment of $775,000 recorded in the
prior quarter, partially offset with a current quarter FDIC special
assessment of $195,000. Additionally, merger expenses related to
our pending merger with Lakeland decreased $275,000 to $2.2 million
for the three months ended March 31, 2024, compared to the trailing
quarter. Partially offsetting these decreases in non-interest
expense, compensation and benefits expense increased $1.3 million
to $40.0 million for the three months ended March 31, 2024,
compared to $38.8 million for the trailing quarter. The increase in
compensation and benefit expense was primarily due to increases in
payroll taxes, employee medical benefits, stock-based compensation
and salary expense, partially offset by a decrease in the accrual
for incentive compensation. For the three months ended March 31,
2024, the Company recorded a $506,000 provision benefit for credit
losses on off-balance sheet credit exposures, compared to a $1.4
million provision benefit for the trailing quarter. The provision
benefits for credit losses on off-balance sheet credit exposures
for both periods were primarily due to decreases in loans approved
and awaiting closing. Additionally, net occupancy expense increased
$723,000 to $8.5 million for the three months ended March 31, 2024,
compared to the trailing quarter, largely due to seasonal increases
in snow removal costs and Common Area Maintenance ("CAM")
expense.
The Company’s annualized adjusted non-interest
expense as a percentage of average assets(1) totaled 1.99% for both
the quarter ended March 31, 2024 and the trailing quarter. The
efficiency ratio (adjusted non-interest expense divided by the sum
of net interest income and non-interest income)(1) was 60.82% for
the three months ended March 31, 2024, compared to 61.32% for
the trailing quarter.
Income Tax Expense
For the three months ended March 31, 2024,
the Company's income tax expense was $10.9 million with an
effective tax rate of 25.3%, compared with income tax expense of
$12.5 million with an effective tax rate of 31.3% for the trailing
quarter. The decrease in tax expense for the three months ended
March 31, 2024, compared with the trailing quarter was largely
due to a decrease in taxable income, combined with a discrete item
related to deferred taxes on stock-based compensation recorded in
the prior quarter and the 2024 sunset of the 2.5% NJ Corporate
Business Tax surcharge. This prior quarter discrete item and the
sunset of the 2.5% NJ Corporate Business Tax surcharge were also
the primary reasons for the decrease in the effective tax rate for
the three months ended March 31, 2024, compared with the
trailing quarter.
Three months ended March 31, 2024
compared to the three months ended March 31, 2023
For the three months ended March 31, 2024, net
income was $32.1 million, or $0.43 per basic and diluted share,
compared to net income of $40.5 million, or $0.54 per basic and
diluted share, for the three months ended March 31, 2023.
Transaction costs related to our pending merger with Lakeland
totaled $2.2 million and $1.1 million for the three months ended
March 31, 2024 and March 31, 2023, respectively.
Net Interest Income and Net Interest
Margin
Net interest income decreased $14.7 million to
$93.7 million for the three months ended March 31, 2024, from
$108.3 million for same period in 2023. The decrease in net
interest income was primarily due to a decrease in lower-costing
deposits and an increase in borrowings, combined with unfavorable
repricing of both deposits and borrowings, partially offset by
originations of new loans and the favorable repricing of
adjustable-rate loans.
The Company’s net interest margin decreased 61
basis points to 2.87% for the quarter ended March 31, 2024,
from 3.48% for the same period last year. The weighted average
yield on interest-earning assets for the quarter ended
March 31, 2024 increased 43 basis points to 5.06%, compared to
4.63% for the quarter ended March 31, 2023. The weighted
average cost of interest-bearing liabilities increased 126 basis
points for the quarter ended March 31, 2024 to 2.80%, compared
to 1.54% for the first quarter of 2023. The average cost of
interest-bearing deposits for the quarter ended March 31, 2024
was 2.60%, compared to 1.39% for the same period last year. Average
non-interest-bearing demand deposits decreased $478.8 million to
$2.07 billion for the quarter ended March 31, 2024, compared
to $2.55 billion for the quarter ended March 31, 2023. The
average cost of total deposits, including non-interest-bearing
deposits, was 2.07% for the quarter ended March 31, 2024,
compared with 1.05% for the quarter ended March 31, 2023. The
average cost of borrowed funds for the quarter ended March 31,
2024 was 3.60%, compared to 2.48% for the same period last
year.
Provision for Credit Losses
For the quarter ended March 31, 2024, the
Company recorded a $200,000 provision for credit losses on loans,
compared with a $6.0 million provision for credit losses for the
quarter ended March 31, 2023. The decrease in the provision
for credit losses was largely a function of the period-over-period
improvement in the economic forecast. For the three months ended
March 31, 2024, net charge-offs totaled $971,000, or an annualized
4 basis points of average loans, compared with net charge-offs of
$671,000, or an annualized 3 basis points of average loans, for the
quarter ended March 31, 2023.
Non-Interest Income and
Expense
Non-interest income totaled $20.8 million for
the quarter ended March 31, 2024, a decrease of $1.3 million,
compared to the same period in 2023. Other income decreased $2.5
million to $798,000 for the three months ended March 31, 2024,
compared to the quarter ended March 31, 2023, primarily due to
a $2.0 million gain from the sale of a foreclosed commercial
property which was recorded in the prior year, combined with a
decrease in gains on sales of SBA loans. Fee income decreased
$475,000 to $5.9 million for the three months ended March 31, 2024,
compared to the prior year quarter, primarily due to decreases in
commercial loan prepayment fees and deposit fee income. Partially
offsetting these decreases in non-interest income, insurance agency
income increased $691,000 to $4.8 million for the three months
ended March 31, 2024, compared to the quarter ended March 31,
2023, largely due to an increase in business activity. Wealth
management income increased $573,000 to $7.5 million for the three
months ended March 31, 2024, compared to the quarter ended
March 31, 2023, mainly due to an increase in the average
market value of assets under management during the period, combined
with an increase in mutual fund fees. Additionally, BOLI income
increased $333,000 to $1.8 million three months ended March 31,
2024, compared to the prior year quarter, primarily due a benefit
claim recognized in the current quarter, combined with an increase
in equity valuations.
For the three months ended March 31, 2024,
non-interest expense totaled $71.3 million, an increase of $1.8
million, compared to the three months ended March 31, 2023.
Compensation and benefits expense increased $1.3 million to $40.0
million for three months ended March 31, 2024, compared to $38.7
million for the same period in 2023. The increase was primarily due
to an increase in salary expense associated with Company-wide
annual merit increases, combined with increases in the accrual for
incentive compensation, payroll taxes and employee insurance,
partially offset by a decrease in stock-based compensation. Data
processing expense increased $1.3 million to $6.8 million for three
months ended March 31, 2024, compared to $5.5 million for the same
period in 2023. The increase in data processing expense was
primarily due to increases in software service, telecommunication
and electronic business banking expenses. Merger-related expenses
related to our pending combination with Lakeland increased $1.1
million to $2.2 million for the three months ended March 31, 2024,
compared to the same period in 2023. Additionally, FDIC insurance
expense increased $335,000 to $2.3 million for the three months
ended March 31, 2024, compared to the same period in 2023,
primarily due to a current quarter FDIC special assessment of
$195,000, combined with an increase in the assessment rate.
Partially offsetting these increases in non-interest expense, other
operating expense decreased $729,000 to $10.3 million for the three
months ended March 31, 2024, compared to $11.1 million for the
three months ended March 31, 2023, largely due to a decrease in
professional fees, partially offset by additional expenses related
to foreclosed commercial real estate properties. For the three
months ended March 31, 2024, the Company recorded a $506,000
provision benefit for credit losses on off-balance sheet credit
exposures, compared to a $739,000 provision charge for the same
period in 2023. The $1.2 million decrease in the provision for
credit losses on off-balance sheet credit exposures for the current
quarter was primarily due to a decrease in loans approved and
awaiting closing.
The Company’s annualized adjusted non-interest
expense as a percentage of average assets(1) was 1.99% for the
quarter ended March 31, 2024, compared to 2.00% 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)(1) was 60.82% for the three months ended March 31, 2024
compared to 51.85% for the same respective period in 2023.
Income Tax Expense
For the three months ended March 31, 2024, the
Company's income tax expense was $10.9 million with an effective
tax rate of 25.3%, compared with $14.5 million with an effective
tax rate of 26.3% for the three months ended March 31, 2023. The
decrease in tax expense for the three months ended March 31, 2024,
compared with the same period last year was largely the result of a
decrease in taxable income and the 2024 sunset of the 2.5% NJ
Corporate Business Tax surcharge, while the decrease in the
effective tax rate for the three months ended March 31, 2024,
compared with the three months ended March 31, 2023, was largely
due to the 2024 sunset of the 2.5% NJ Corporate Business Tax
surcharge and a decrease in the proportion of income derived from
taxable sources.
Asset Quality
The Company’s total non-performing loans as of
March 31, 2024 were $47.6 million, or 0.44% of total loans,
compared $49.6 million, or 0.46% of total loans as of
December 31, 2023 and $35.5 million, or 0.35% of total loans
as of March 31, 2023. The $2.0 million decrease in
non-performing loans as of March 31, 2024, compared to the
trailing quarter, consisted of a $4.6 million decrease in
non-performing commercial loans and a $771,000 decrease in
non-performing construction loans, partially offset by a $1.6
million increase in non-performing multi-family loans, a $794,000
increase in non-performing residential mortgage loans, a $787,000
increase in non-performing commercial mortgage loans and a $127,000
increase in non-performing consumer loans. As of March 31,
2024, impaired loans totaled $40.1 million with related specific
reserves of $8.2 million, compared with impaired loans totaling
$42.3 million with related specific reserves of $2.9 million as of
December 31, 2023. As of March 31, 2023, impaired loans
totaled $27.5 million with related specific reserves of $1.4
million.
As of March 31, 2024, the Company’s
allowance for credit losses related to the loan portfolio was 0.98%
of total loans, compared to 0.99% and 0.91% as of December 31,
2023 and March 31, 2023, respectively. The allowance for
credit losses decreased $771,000 to $106.4 million as of
March 31, 2024, from $107.2 million as of December 31,
2023. The decrease in the allowance for credit losses on loans at
March 31, 2024 compared to December 31, 2023 was due to
net charge-offs of $971,000, partially offset by a $200,000
provision for credit losses.
The following table shows accruing past due
loans and non-accrual loans on the dates indicated, as well as
certain asset quality ratios.
|
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
|
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 |
3 |
|
|
$ |
5,052 |
|
|
|
1 |
|
|
$ |
825 |
|
|
|
1 |
|
|
$ |
3,000 |
|
|
Multi-family mortgage loans |
4 |
|
|
|
12,069 |
|
|
|
1 |
|
|
|
3,815 |
|
|
|
1 |
|
|
|
3,875 |
|
|
Construction loans |
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Residential mortgage loans |
11 |
|
|
|
3,568 |
|
|
|
13 |
|
|
|
3,429 |
|
|
|
9 |
|
|
|
2,064 |
|
|
Total mortgage loans |
18 |
|
|
|
20,689 |
|
|
|
15 |
|
|
|
8,069 |
|
|
|
11 |
|
|
|
8,939 |
|
|
Commercial loans |
11 |
|
|
|
4,493 |
|
|
|
6 |
|
|
|
998 |
|
|
|
4 |
|
|
|
1,070 |
|
|
Consumer loans |
22 |
|
|
|
803 |
|
|
|
31 |
|
|
|
875 |
|
|
|
22 |
|
|
|
2,106 |
|
|
Total 30 to 59 days past due |
51 |
|
|
$ |
25,985 |
|
|
|
52 |
|
|
$ |
9,942 |
|
|
|
37 |
|
|
$ |
12,115 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
60 to 89 days past due: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial mortgage loans |
3 |
|
|
$ |
1,148 |
|
|
|
— |
|
|
$ |
— |
|
|
|
4 |
|
|
$ |
1,528 |
|
|
Multi-family mortgage loans |
— |
|
|
|
— |
|
|
|
1 |
|
|
|
1,635 |
|
|
|
1 |
|
|
|
785 |
|
|
Construction loans |
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Residential mortgage loans |
6 |
|
|
|
804 |
|
|
|
8 |
|
|
|
1,208 |
|
|
|
6 |
|
|
|
639 |
|
|
Total mortgage loans |
9 |
|
|
|
1,952 |
|
|
|
9 |
|
|
|
2,843 |
|
|
|
11 |
|
|
|
2,952 |
|
|
Commercial loans |
3 |
|
|
|
332 |
|
|
|
3 |
|
|
|
198 |
|
|
|
2 |
|
|
|
3,028 |
|
|
Consumer loans |
8 |
|
|
|
755 |
|
|
|
5 |
|
|
|
275 |
|
|
|
1 |
|
|
|
150 |
|
|
Total 60 to 89 days past due |
20 |
|
|
|
3,039 |
|
|
|
17 |
|
|
|
3,316 |
|
|
|
14 |
|
|
|
6,130 |
|
|
Total accruing past due loans |
71 |
|
|
$ |
29,024 |
|
|
|
69 |
|
|
$ |
13,258 |
|
|
|
51 |
|
|
$ |
18,245 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial mortgage loans |
8 |
|
|
$ |
5,938 |
|
|
|
7 |
|
|
$ |
5,151 |
|
|
|
5 |
|
|
$ |
6,815 |
|
|
Multi-family mortgage loans |
2 |
|
|
|
2,355 |
|
|
|
1 |
|
|
|
744 |
|
|
|
1 |
|
|
|
1,548 |
|
|
Construction loans |
— |
|
|
|
— |
|
|
|
1 |
|
|
|
771 |
|
|
|
2 |
|
|
|
1,874 |
|
|
Residential mortgage loans |
10 |
|
|
|
1,647 |
|
|
|
7 |
|
|
|
853 |
|
|
|
12 |
|
|
|
1,744 |
|
|
Total mortgage loans |
20 |
|
|
|
9,940 |
|
|
|
16 |
|
|
|
7,519 |
|
|
|
20 |
|
|
|
11,981 |
|
|
Commercial loans |
21 |
|
|
|
36,892 |
|
|
|
26 |
|
|
|
41,487 |
|
|
|
30 |
|
|
|
23,129 |
|
|
Consumer loans |
11 |
|
|
|
760 |
|
|
|
10 |
|
|
|
633 |
|
|
|
10 |
|
|
|
346 |
|
|
Total non-accrual loans |
52 |
|
|
$ |
47,592 |
|
|
|
52 |
|
|
$ |
49,639 |
|
|
|
60 |
|
|
$ |
35,456 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans to total
loans |
|
|
|
|
0.44 |
|
% |
|
|
|
|
|
0.46 |
|
% |
|
|
|
|
|
0.35 |
|
% |
Allowance for loan losses to
total non-performing loans |
|
|
|
|
223.63 |
|
% |
|
|
|
|
|
215.96 |
|
% |
|
|
|
|
|
261.61 |
|
% |
Allowance for loan losses to
total loans |
|
|
|
|
0.98 |
|
% |
|
|
|
|
|
0.99 |
|
% |
|
|
|
|
|
0.91 |
|
% |
As of March 31, 2024 and December 31,
2023, the Company held foreclosed assets of $11.3 million and $11.7
million, respectively. During the three months ended March 31,
2024, there were two properties sold with an aggregate carrying
value of $327,000. Foreclosed assets as of March 31, 2024
consisted primarily of commercial real estate. Total non-performing
assets as of March 31, 2024 decreased $2.4 million to $58.9
million, or 0.42% of total assets, from $61.3 million, or 0.43% of
total assets as of December 31, 2023.
Balance Sheet Summary
Total assets as of March 31, 2024 were
$14.13 billion, a $79.9 million decrease from December 31,
2023. The decrease in total assets was primarily due to a
$33.6 million decrease in total investments and a $31.0
million decrease in total loans.
The Company’s loan portfolio totaled $10.84
billion as of March 31, 2024 and $10.87 billion as of
December 31, 2023. The loan portfolio consisted of the
following:
|
March 31, 2024 |
|
December 31, 2023 |
|
(Dollars in thousands) |
Mortgage loans: |
|
|
|
Commercial |
$ |
4,353,799 |
|
|
$ |
4,512,411 |
|
Multi-family |
|
1,825,888 |
|
|
|
1,812,500 |
|
Construction |
|
711,417 |
|
|
|
653,246 |
|
Residential |
|
1,152,185 |
|
|
|
1,164,956 |
|
Total mortgage loans |
|
8,043,289 |
|
|
|
8,143,113 |
|
Commercial loans |
|
2,514,550 |
|
|
|
2,442,406 |
|
Consumer loans |
|
295,125 |
|
|
|
299,164 |
|
Total gross loans |
|
10,852,964 |
|
|
|
10,884,683 |
|
Premiums on purchased
loans |
|
1,439 |
|
|
|
1,474 |
|
Net deferred fees and unearned
discounts |
|
(11,696 |
) |
|
|
(12,456 |
) |
Total loans |
$ |
10,842,707 |
|
|
$ |
10,873,701 |
|
During the three months ended March 31, 2024,
the loan portfolio had net decreases of $158.6 million of
commercial mortgage loans, $12.8 million of residential mortgage
loans, and $4.0 million of consumer loans, partially offset by net
increases of $72.1 million of commercial loans, $58.2 million of
construction loans, and $13.4 million of multi-family loans. All
commercial loans, which consist of commercial real estate,
multi-family, commercial and construction loans, represented 86.7%
of the loan portfolio as of March 31, 2024, compared to 86.5%
as of December 31, 2023.
For the three months ended March 31, 2024, loan
funding, including advances on lines of credit, totaled $622.7
million, compared with $809.2 million for the same period in
2023.
As of March 31, 2024, the Company’s
unfunded loan commitments totaled $1.97 billion, including
commitments of $1.14 billion in commercial loans, $486.9 million in
construction loans and $49.9 million in commercial mortgage loans.
Unfunded loan commitments as of December 31, 2023 and
March 31, 2023 were $2.09 billion and $2.05 billion,
respectively.
The loan pipeline, consisting of work-in-process
and loans approved pending closing, totaled $1.08 billion as of
March 31, 2024, compared to $1.09 billion and $1.54 billion as
of December 31, 2023 and March 31, 2023,
respectively.
Total investment securities were $2.10 billion
as of March 31, 2024, a $33.6 million decrease from
December 31, 2023. This decrease was primarily due to
repayments of mortgage-backed securities, an increase in unrealized
losses on available for sale debt securities and maturities and
calls of certain municipal and agency bonds, partially offset by
purchases of mortgage-backed and municipal securities.
Total deposits decreased $193.6 million during
the three months ended March 31, 2024, to $10.10 billion. The
decrease in total deposits was primarily due to a decrease in
brokered deposits of $98.0 million and a decrease in municipal
deposits of $57.0 million. Total savings and demand deposit
accounts decreased $129.7 million to $9.07 billion as of
March 31, 2024, while total time deposits decreased $64.0
million to $1.03 billion as of March 31, 2024. The decrease in
savings and demand deposits consisted of a $149.1 million decrease
in non-interest-bearing demand deposits and a $14.7 million
decrease in savings deposits, partially offset by a $28.6 million
increase in interest bearing demand deposits and a $5.5 million
increase in money market deposits. The decrease in time deposits
consisted of an $84.8 million decrease in brokered time deposits,
partially offset by a $20.9 million increase in retail time
deposits.
Borrowed funds increased $88.1 million during
the three months ended March 31, 2024, to $2.06 billion. The
increase in borrowings was largely due to asset funding
requirements. Borrowed funds represented 14.6% of total assets as
of March 31, 2024, an increase from 13.9% as of
December 31, 2023.
Stockholders’ equity increased $4.6 million
during the three months ended March 31, 2024, to $1.70 billion,
primarily due to net income earned for the period, partially offset
by an increase in unrealized losses on available for sale debt
securities and cash dividends paid to stockholders. For the three
months ended March 31, 2024, common stock repurchases totaled
86,325 shares at an average cost of $14.84 per share, all of which
were made in connection with withholding to cover income taxes on
the vesting of stock-based compensation. As of March 31, 2024,
approximately 1.0 million shares remained eligible for repurchase
under the current stock repurchase authorization. Book value per
share and tangible book value per share(1) as of March 31,
2024 were $22.33 and $16.30, respectively, compared with $22.38 and
$16.32, respectively, as of 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 northern and central New
Jersey, Bucks, Lehigh and Northampton counties in Pennsylvania, as
well as Queens and Nassau Counties in New York. The Bank also
provides fiduciary and wealth management services through its
wholly owned subsidiary, Beacon Trust Company and insurance
services through its wholly owned subsidiary, Provident Protection
Plus, Inc.
Post Earnings Conference
Call
Representatives of the Company will hold a
conference call for investors on Friday, April 19, 2024 at 10:00
a.m. Eastern Time to discuss the Company’s financial results for
the quarter ended March 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, competitive products and pricing, 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 pending merger transaction when expected or at all;
certain restrictions during the pendency of the transaction that
may impact the Company’s ability to pursue certain business
opportunities or strategic transactions; the possibility that the
pending merger transaction may be more expensive to complete than
anticipated, including as a result of conditions imposed by
regulators, unexpected conditions, factors or events, diversion of
management’s attention from ongoing business operations and
opportunities; potential adverse reactions or changes to business
or employee relationships, including those resulting from the
completion of the merger and integration of the companies; and the
impact of a potential shutdown of the federal government.
The Company cautions readers not to place undue
reliance on any such forward-looking statements which speak only as
of the date they are made. The Company advises readers that the
factors listed above could affect the Company's financial
performance and could cause the Company's actual results for future
periods to differ materially from any opinions or statements
expressed with respect to future periods in any current statements.
The Company does not assume any duty, and does not undertake, to
update any forward-looking statements to reflect events or
circumstances after the date of this statement.
Footnotes
(1) Annualized adjusted
pre-tax, pre-provision return on average assets, annualized return
on average tangible equity, tangible book value per share,
annualized adjusted non-interest expense as a percentage of average
assets and the efficiency ratio are non-GAAP financial measures.
Please refer to the Notes following the Consolidated Financial
Highlights which contain the reconciliation of GAAP to non-GAAP
financial measures and the associated calculations.
|
|
|
|
|
|
PROVIDENT FINANCIAL SERVICES, INC. AND
SUBSIDIARY |
Consolidated Financial Highlights |
(Dollars in Thousands, except share data) (Unaudited) |
|
|
|
As of or for the Three months
ended |
|
March 31, |
|
December 31, |
|
March 31, |
|
2024 |
|
2023 |
|
2023 |
Statement of
Income |
|
|
|
|
|
Net interest income |
$ |
93,670 |
|
|
|
$ |
95,788 |
|
|
|
$ |
108,324 |
|
|
Provision for credit losses |
|
186 |
|
|
|
|
497 |
|
|
|
|
6,001 |
|
|
Non-interest income |
|
20,807 |
|
|
|
|
18,968 |
|
|
|
|
22,152 |
|
|
Non-interest expense |
|
71,321 |
|
|
|
|
74,491 |
|
|
|
|
69,485 |
|
|
Income before income tax expense |
|
42,970 |
|
|
|
|
39,768 |
|
|
|
|
54,990 |
|
|
Net income |
|
32,082 |
|
|
|
|
27,312 |
|
|
|
|
40,536 |
|
|
Diluted earnings per share |
$ |
0.43 |
|
|
|
$ |
0.36 |
|
|
|
$ |
0.54 |
|
|
Interest rate spread |
|
2.26 |
|
% |
|
|
2.33 |
|
% |
|
|
3.09 |
|
% |
Net interest margin |
|
2.87 |
|
% |
|
|
2.92 |
|
% |
|
|
3.48 |
|
% |
|
|
|
|
|
|
Profitability |
|
|
|
|
|
Annualized return on average assets |
|
0.92 |
|
% |
|
|
0.77 |
|
% |
|
|
1.20 |
|
% |
Annualized return on average equity |
|
7.60 |
|
% |
|
|
6.60 |
|
% |
|
|
10.11 |
|
% |
Annualized return on average tangible equity (1) |
|
10.40 |
|
% |
|
|
9.15 |
|
% |
|
|
14.10 |
|
% |
Annualized adjusted non-interest expense to average assets (3) |
|
1.99 |
|
% |
|
|
1.98 |
|
% |
|
|
2.00 |
|
% |
Efficiency ratio (4) |
|
60.82 |
|
% |
|
|
61.32 |
|
% |
|
|
51.85 |
|
% |
|
|
|
|
|
|
Asset
Quality |
|
|
|
|
|
Non-accrual loans |
$ |
47,592 |
|
|
|
$ |
49,639 |
|
|
|
$ |
35,456 |
|
|
90+ and still accruing |
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
Non-performing loans |
|
47,592 |
|
|
|
|
49,639 |
|
|
|
|
35,456 |
|
|
Foreclosed assets |
|
11,324 |
|
|
|
|
11,651 |
|
|
|
|
13,743 |
|
|
Non-performing assets |
|
58,916 |
|
|
|
|
61,290 |
|
|
|
|
49,199 |
|
|
Non-performing loans to total loans |
|
0.44 |
|
% |
|
|
0.46 |
|
% |
|
|
0.35 |
|
% |
Non-performing assets to total assets |
|
0.42 |
|
% |
|
|
0.43 |
|
% |
|
|
0.36 |
|
% |
Allowance for loan losses |
$ |
106,429 |
|
|
|
$ |
107,200 |
|
|
|
$ |
92,758 |
|
|
Allowance for loan losses to total non-performing loans |
|
223.63 |
|
% |
|
|
215.96 |
|
% |
|
|
261.61 |
|
% |
Allowance for loan losses to total loans |
|
0.98 |
|
% |
|
|
0.99 |
|
% |
|
|
0.91 |
|
% |
Net loan charge-offs |
$ |
971 |
|
|
|
$ |
863 |
|
|
|
$ |
671 |
|
|
Annualized net loan charge-offs to average total loans |
|
0.04 |
|
% |
|
|
0.03 |
|
% |
|
|
0.03 |
|
% |
|
|
|
|
|
|
Average Balance Sheet
Data |
|
|
|
|
|
Assets |
$ |
14,093,767 |
|
|
|
$ |
14,114,626 |
|
|
|
$ |
13,732,708 |
|
|
Loans, net |
|
10,668,992 |
|
|
|
|
10,660,201 |
|
|
|
|
10,093,856 |
|
|
Earning assets |
|
12,862,910 |
|
|
|
|
12,823,541 |
|
|
|
|
12,418,530 |
|
|
Core deposits |
|
9,129,244 |
|
|
|
|
9,210,315 |
|
|
|
|
9,720,797 |
|
|
Borrowings |
|
1,940,981 |
|
|
|
|
1,873,822 |
|
|
|
|
1,224,279 |
|
|
Interest-bearing liabilities |
|
10,074,106 |
|
|
|
|
10,020,726 |
|
|
|
|
9,264,564 |
|
|
Stockholders' equity |
|
1,698,170 |
|
|
|
|
1,642,854 |
|
|
|
|
1,626,370 |
|
|
Average yield on interest-earning assets |
|
5.06 |
|
% |
|
|
5.04 |
|
% |
|
|
4.63 |
|
% |
Average cost of interest-bearing liabilities |
|
2.80 |
|
% |
|
|
2.71 |
|
% |
|
|
1.54 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
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) Book and Tangible
Book Value per Share |
Three Months Ended |
|
March 31, |
|
December 31, |
|
March 31, |
|
2024 |
|
2023 |
|
2023 |
Total stockholders' equity |
$ |
1,695,162 |
|
|
|
$ |
1,690,596 |
|
|
|
$ |
1,640,080 |
|
|
Less: total intangible assets |
|
457,239 |
|
|
|
|
457,942 |
|
|
|
|
460,132 |
|
|
Total tangible stockholders' equity |
$ |
1,237,923 |
|
|
|
$ |
1,232,654 |
|
|
|
$ |
1,179,948 |
|
|
|
|
|
|
|
|
Shares outstanding |
|
75,928,193 |
|
|
|
|
75,537,186 |
|
|
|
|
75,467,890 |
|
|
|
|
|
|
|
|
Book value per share (total stockholders' equity/shares
outstanding) |
$ |
22.33 |
|
|
|
$ |
22.38 |
|
|
|
$ |
21.73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per share (total tangible stockholders'
equity/shares outstanding) |
$ |
16.30 |
|
|
|
$ |
16.32 |
|
|
|
$ |
15.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Annualized Return
on Average Tangible Equity |
|
|
|
|
|
|
Three Months Ended |
|
March 31, |
|
December 31, |
|
March 31, |
|
2024 |
|
2023 |
|
2023 |
Total average stockholders' equity |
$ |
1,698,170 |
|
|
|
$ |
1,642,854 |
|
|
|
$ |
1,626,370 |
|
|
Less: total average intangible assets |
|
457,695 |
|
|
|
|
458,410 |
|
|
|
|
460,631 |
|
|
Total average tangible stockholders' equity |
$ |
1,240,475 |
|
|
|
$ |
1,184,444 |
|
|
|
$ |
1,165,739 |
|
|
|
|
|
|
|
|
Net income |
$ |
32,082 |
|
|
|
$ |
27,312 |
|
|
|
$ |
40,536 |
|
|
|
|
|
|
|
|
Annualized return on average tangible equity (net income/total
average tangible stockholders' equity) |
|
10.40 |
|
% |
|
|
9.15 |
|
% |
|
|
14.10 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
(3) Annualized
Pre-Tax, Pre-Provision ("PTPP") Return on Average
Assets |
|
|
|
|
|
|
Three Months Ended |
|
March 31, |
|
December 31, |
|
March 31, |
|
2024 |
|
2023 |
|
2023 |
Net income |
$ |
32,082 |
|
|
|
$ |
27,312 |
|
|
|
$ |
40,536 |
|
|
Adjustments to net income: |
|
|
|
|
|
Provision for credit losses |
|
186 |
|
|
|
|
497 |
|
|
|
|
6,001 |
|
|
Credit loss (benefit) expense for off-balance sheet credit
exposure |
|
(506 |
) |
|
|
|
(1,360 |
) |
|
|
|
739 |
|
|
Merger-related transaction costs |
|
2,202 |
|
|
|
|
2,477 |
|
|
|
|
1,100 |
|
|
Contingent litigation reserves |
|
— |
|
|
|
|
3,000 |
|
|
|
|
— |
|
|
Income tax expense |
|
10,888 |
|
|
|
|
12,456 |
|
|
|
|
14,454 |
|
|
PTPP income |
$ |
44,852 |
|
|
|
$ |
44,382 |
|
|
|
$ |
62,830 |
|
|
|
|
|
|
|
|
Annualized PTPP income |
$ |
180,394 |
|
|
|
$ |
176,081 |
|
|
|
$ |
254,811 |
|
|
Average assets |
$ |
14,093,767 |
|
|
|
$ |
14,114,626 |
|
|
|
$ |
13,732,708 |
|
|
|
|
|
|
|
|
Annualized PTPP return on average assets |
|
1.28 |
|
% |
|
|
1.25 |
|
% |
|
|
1.86 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
(4) Annualized
Adjusted Non-Interest Expense to Average Assets |
|
|
|
|
|
|
Three Months Ended |
|
March 31, |
|
December 31, |
|
March 31, |
|
2024 |
|
2023 |
|
2023 |
Reported non-interest expense |
$ |
71,321 |
|
|
|
$ |
74,491 |
|
|
|
$ |
69,485 |
|
|
Adjustments to non-interest expense: |
|
|
|
|
|
Credit loss (benefit) expense for off-balance sheet credit
exposures |
|
(506 |
) |
|
|
|
(1,360 |
) |
|
|
|
739 |
|
|
Merger-related transaction costs |
|
2,202 |
|
|
|
|
2,477 |
|
|
|
|
1,100 |
|
|
Contingent litigation reserves |
$ |
— |
|
|
|
$ |
3,000 |
|
|
|
$ |
— |
|
|
Adjusted non-interest expense |
$ |
69,625 |
|
|
|
$ |
70,374 |
|
|
|
$ |
67,646 |
|
|
|
|
|
|
|
|
Annualized adjusted non-interest expense |
$ |
280,030 |
|
|
|
$ |
279,201 |
|
|
|
$ |
274,342 |
|
|
|
|
|
|
|
|
Average assets |
$ |
14,093,767 |
|
|
|
$ |
14,114,626 |
|
|
|
$ |
13,732,708 |
|
|
|
|
|
|
|
|
Annualized adjusted non-interest expense/average assets |
|
1.99 |
|
% |
|
|
1.98 |
|
% |
|
|
2.00 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
(5) Efficiency Ratio
Calculation |
|
|
|
|
|
|
Three Months Ended |
|
March 31, |
|
December 31, |
|
March 31, |
|
2024 |
|
2023 |
|
2023 |
Net interest income |
$ |
93,670 |
|
|
|
$ |
95,788 |
|
|
|
$ |
108,324 |
|
|
Non-interest income |
|
20,807 |
|
|
|
|
18,968 |
|
|
|
|
22,152 |
|
|
Total income |
$ |
114,477 |
|
|
|
$ |
114,756 |
|
|
|
$ |
130,476 |
|
|
|
|
|
|
|
|
Adjusted non-interest expense |
$ |
69,625 |
|
|
|
$ |
70,374 |
|
|
|
$ |
67,646 |
|
|
|
|
|
|
|
|
Efficiency ratio (adjusted non-interest expense/income) |
|
60.82 |
|
% |
|
|
61.32 |
|
% |
|
|
51.85 |
|
% |
|
PROVIDENT FINANCIAL SERVICES, INC. AND
SUBSIDIARY |
Consolidated Statements of Financial Condition |
March 31, 2024 (Unaudited) and December 31, 2023 |
(Dollars in Thousands) |
|
|
|
|
Assets |
March 31, 2024 |
|
December 31, 2023 |
Cash and due from banks |
$ |
158,306 |
|
|
$ |
180,241 |
|
Short-term investments |
|
46 |
|
|
|
14 |
|
Total cash and cash equivalents |
|
158,352 |
|
|
|
180,255 |
|
Available for sale debt
securities, at fair value |
|
1,666,306 |
|
|
|
1,690,112 |
|
Held to maturity debt securities, net (fair value of $341,459 as of
March 31, 2024 (unaudited) and $352,601 as of December 31,
2023) |
|
354,671 |
|
|
|
363,080 |
|
Equity securities, at fair
value |
|
1,341 |
|
|
|
1,270 |
|
Federal Home Loan Bank
stock |
|
77,750 |
|
|
|
79,217 |
|
Loans |
|
10,842,707 |
|
|
|
10,873,701 |
|
Less allowance for credit losses |
|
106,429 |
|
|
|
107,200 |
|
Net loans |
|
10,736,278 |
|
|
|
10,766,501 |
|
Foreclosed assets, net |
|
11,324 |
|
|
|
11,651 |
|
Banking premises and
equipment, net |
|
69,487 |
|
|
|
70,998 |
|
Accrued interest
receivable |
|
58,677 |
|
|
|
58,966 |
|
Intangible assets |
|
457,239 |
|
|
|
457,942 |
|
Bank-owned life insurance |
|
243,513 |
|
|
|
243,050 |
|
Other assets |
|
295,980 |
|
|
|
287,768 |
|
Total assets |
$ |
14,130,918 |
|
|
$ |
14,210,810 |
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
Deposits: |
|
|
|
Demand deposits |
$ |
7,905,961 |
|
|
$ |
8,020,889 |
|
Savings deposits |
|
1,160,951 |
|
|
|
1,175,683 |
|
Certificates of deposit of $250,000 or more |
|
223,639 |
|
|
|
218,549 |
|
Other time deposits |
|
808,341 |
|
|
|
877,393 |
|
Total deposits |
|
10,098,892 |
|
|
|
10,292,514 |
|
Mortgage escrow deposits |
|
43,881 |
|
|
|
36,838 |
|
Borrowed funds |
|
2,058,098 |
|
|
|
1,970,033 |
|
Subordinated debentures |
|
10,744 |
|
|
|
10,695 |
|
Other liabilities |
|
224,141 |
|
|
|
210,134 |
|
Total liabilities |
|
12,435,756 |
|
|
|
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,
83,209,012 shares issued and 75,928,193 shares outstanding as of
March 31, 2024 and 75,537,186 outstanding as of December 31,
2023. |
|
832 |
|
|
|
832 |
|
Additional paid-in
capital |
|
990,582 |
|
|
|
989,058 |
|
Retained earnings |
|
988,480 |
|
|
|
974,542 |
|
Accumulated other
comprehensive loss |
|
(151,585 |
) |
|
|
(141,115 |
) |
Treasury stock |
|
(129,062 |
) |
|
|
(127,825 |
) |
Unallocated common stock held
by the Employee Stock Ownership Plan |
|
(4,085 |
) |
|
|
(4,896 |
) |
Common Stock acquired by the
Directors' Deferred Fee Plan |
|
(2,546 |
) |
|
|
(2,694 |
) |
Deferred Compensation -
Directors' Deferred Fee Plan |
|
2,546 |
|
|
|
2,694 |
|
Total stockholders' equity |
|
1,695,162 |
|
|
|
1,690,596 |
|
Total liabilities and stockholders' equity |
$ |
14,130,918 |
|
|
$ |
14,210,810 |
|
|
PROVIDENT FINANCIAL SERVICES, INC. AND
SUBSIDIARY |
Consolidated Statements of Income |
Three months ended March 31, 2024, December 31, 2023 and
March 31, 2023 |
(Dollars in Thousands, except per share data) (Unaudited) |
|
|
|
|
|
|
|
Three Months Ended |
|
March 31, |
|
December 31, |
|
March 31, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
Interest and dividend
income: |
|
|
|
|
|
Real estate secured loans |
$ |
107,456 |
|
|
$ |
109,112 |
|
|
$ |
95,988 |
|
Commercial loans |
|
36,100 |
|
|
|
34,939 |
|
|
|
28,683 |
|
Consumer loans |
|
4,523 |
|
|
|
5,020 |
|
|
|
4,242 |
|
Available for sale debt securities, equity securities and Federal
Home Loan Bank stock |
|
12,330 |
|
|
|
12,042 |
|
|
|
11,430 |
|
Held to maturity debt securities |
|
2,268 |
|
|
|
2,303 |
|
|
|
2,368 |
|
Deposits, federal funds sold and other short-term investments |
|
1,182 |
|
|
|
755 |
|
|
|
845 |
|
Total interest income |
|
163,859 |
|
|
|
164,171 |
|
|
|
143,556 |
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
Deposits |
|
52,534 |
|
|
|
50,579 |
|
|
|
27,510 |
|
Borrowed funds |
|
17,383 |
|
|
|
17,527 |
|
|
|
7,476 |
|
Subordinated debt |
|
272 |
|
|
|
277 |
|
|
|
246 |
|
Total interest expense |
|
70,189 |
|
|
|
68,383 |
|
|
|
35,232 |
|
Net interest income |
|
93,670 |
|
|
|
95,788 |
|
|
|
108,324 |
|
Provision charge for credit
losses |
|
186 |
|
|
|
497 |
|
|
|
6,001 |
|
Net interest income after provision for credit losses |
|
93,484 |
|
|
|
95,291 |
|
|
|
102,323 |
|
|
|
|
|
|
|
Non-interest income: |
|
|
|
|
|
Fees |
|
5,912 |
|
|
|
6,102 |
|
|
|
6,387 |
|
Wealth management income |
|
7,488 |
|
|
|
6,843 |
|
|
|
6,915 |
|
Insurance agency income |
|
4,793 |
|
|
|
2,759 |
|
|
|
4,102 |
|
Bank-owned life insurance |
|
1,817 |
|
|
|
1,644 |
|
|
|
1,484 |
|
Net gain on securities transactions |
|
(1 |
) |
|
|
(7 |
) |
|
|
(5 |
) |
Other income |
|
798 |
|
|
|
1,627 |
|
|
|
3,269 |
|
Total non-interest income |
|
20,807 |
|
|
|
18,968 |
|
|
|
22,152 |
|
|
|
|
|
|
|
Non-interest expense: |
|
|
|
|
|
Compensation and employee benefits |
|
40,048 |
|
|
|
38,773 |
|
|
|
38,737 |
|
Net occupancy expense |
|
8,520 |
|
|
|
7,797 |
|
|
|
8,410 |
|
Data processing expense |
|
6,783 |
|
|
|
6,457 |
|
|
|
5,508 |
|
FDIC Insurance |
|
2,272 |
|
|
|
2,890 |
|
|
|
1,937 |
|
Amortization of intangibles |
|
705 |
|
|
|
721 |
|
|
|
762 |
|
Advertising and promotion expense |
|
966 |
|
|
|
1,100 |
|
|
|
1,232 |
|
Credit loss (benefit) expense for off-balance sheet exposures |
|
(506 |
) |
|
|
(1,360 |
) |
|
|
739 |
|
Merger-related expenses |
|
2,202 |
|
|
|
2,477 |
|
|
|
1,100 |
|
Other operating expenses |
|
10,331 |
|
|
|
15,636 |
|
|
|
11,060 |
|
Total non-interest expense |
|
71,321 |
|
|
|
74,491 |
|
|
|
69,485 |
|
Income before income tax expense |
|
42,970 |
|
|
|
39,768 |
|
|
|
54,990 |
|
Income tax expense |
|
10,888 |
|
|
|
12,456 |
|
|
|
14,454 |
|
Net income |
$ |
32,082 |
|
|
$ |
27,312 |
|
|
$ |
40,536 |
|
|
|
|
|
|
|
Basic earnings per share |
$ |
0.43 |
|
|
$ |
0.36 |
|
|
$ |
0.54 |
|
Average basic shares
outstanding |
|
75,260,029 |
|
|
|
74,995,705 |
|
|
|
74,645,336 |
|
|
|
|
|
|
|
Diluted earnings per
share |
$ |
0.43 |
|
|
$ |
0.36 |
|
|
$ |
0.54 |
|
Average diluted shares
outstanding |
|
75,275,660 |
|
|
|
75,041,545 |
|
|
|
74,702,527 |
|
|
PROVIDENT FINANCIAL SERVICES, INC. AND
SUBSIDIARY |
Net Interest Margin Analysis |
Quarterly Average Balances |
(Dollars in Thousands) (Unaudited) |
|
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
|
Average Balance |
|
Interest |
|
Average Yield/Cost |
|
Average Balance |
|
Interest |
|
Average Yield/Cost |
|
Average Balance |
|
Interest |
|
Average Yield/Cost |
Interest-Earning
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
$ |
87,848 |
|
|
$ |
1,182 |
|
|
5.41 |
|
% |
|
$ |
54,998 |
|
|
$ |
745 |
|
|
5.37 |
|
% |
|
$ |
72,022 |
|
|
$ |
845 |
|
|
4.76 |
|
% |
Federal funds sold and other short-term investments |
|
21 |
|
|
|
— |
|
|
— |
|
% |
|
|
838 |
|
|
|
10 |
|
|
4.39 |
|
% |
|
|
29 |
|
|
|
— |
|
|
3.70 |
|
% |
Available for sale debt securities |
|
1,673,950 |
|
|
|
10,022 |
|
|
2.39 |
|
% |
|
|
1,647,906 |
|
|
|
9,858 |
|
|
2.39 |
|
% |
|
|
1,808,619 |
|
|
|
10,402 |
|
|
2.30 |
|
% |
Held to maturity debt securities, net (1) |
|
357,246 |
|
|
|
2,268 |
|
|
2.54 |
|
% |
|
|
364,433 |
|
|
|
2,303 |
|
|
2.53 |
|
% |
|
|
383,907 |
|
|
|
2,368 |
|
|
2.47 |
|
% |
Equity securities, at fair value |
|
1,099 |
|
|
|
— |
|
|
— |
|
% |
|
|
1,016 |
|
|
|
— |
|
|
— |
|
% |
|
|
991 |
|
|
|
— |
|
|
— |
|
% |
Federal Home Loan Bank stock |
|
73,754 |
|
|
|
2,308 |
|
|
12.52 |
|
% |
|
|
94,149 |
|
|
|
2,184 |
|
|
9.28 |
|
% |
|
|
59,106 |
|
|
|
1,028 |
|
|
6.96 |
|
% |
Net loans: (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total mortgage loans |
|
7,990,218 |
|
|
|
107,456 |
|
|
5.33 |
|
% |
|
|
8,028,300 |
|
|
|
109,112 |
|
|
5.34 |
|
% |
|
|
7,643,140 |
|
|
|
95,988 |
|
|
5.02 |
|
% |
Total commercial loans |
|
2,381,965 |
|
|
|
36,100 |
|
|
6.03 |
|
% |
|
|
2,329,430 |
|
|
|
34,939 |
|
|
5.90 |
|
% |
|
|
2,146,658 |
|
|
|
28,683 |
|
|
5.37 |
|
% |
Total consumer loans |
|
296,809 |
|
|
|
4,523 |
|
|
6.13 |
|
% |
|
|
302,471 |
|
|
|
5,020 |
|
|
6.58 |
|
% |
|
|
304,058 |
|
|
|
4,242 |
|
|
5.66 |
|
% |
Total net loans |
|
10,668,992 |
|
|
|
148,079 |
|
|
5.51 |
|
% |
|
|
10,660,201 |
|
|
|
149,071 |
|
|
5.50 |
|
% |
|
|
10,093,856 |
|
|
|
128,913 |
|
|
5.12 |
|
% |
Total interest-earning assets |
$ |
12,862,910 |
|
|
$ |
163,859 |
|
|
5.06 |
|
% |
|
$ |
12,823,541 |
|
|
$ |
164,171 |
|
|
5.04 |
|
% |
|
$ |
12,418,530 |
|
|
$ |
143,556 |
|
|
4.63 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Earning
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
116,563 |
|
|
|
|
|
|
|
111,610 |
|
|
|
|
|
|
|
142,953 |
|
|
|
|
|
Other assets |
|
1,114,294 |
|
|
|
|
|
|
|
1,179,475 |
|
|
|
|
|
|
|
1,171,225 |
|
|
|
|
|
Total assets |
$ |
14,093,767 |
|
|
|
|
|
|
$ |
14,114,626 |
|
|
|
|
|
|
$ |
13,732,708 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
$ |
5,894,062 |
|
|
$ |
41,566 |
|
|
2.84 |
|
% |
|
$ |
5,856,916 |
|
|
$ |
39,648 |
|
|
2.69 |
|
% |
|
$ |
5,771,582 |
|
|
$ |
21,920 |
|
|
1.54 |
|
% |
Savings deposits |
|
1,163,181 |
|
|
|
637 |
|
|
0.22 |
|
% |
|
|
1,183,857 |
|
|
|
602 |
|
|
0.20 |
|
% |
|
|
1,398,419 |
|
|
|
453 |
|
|
0.13 |
|
% |
Time deposits |
|
1,065,170 |
|
|
|
10,331 |
|
|
3.90 |
|
% |
|
|
1,095,468 |
|
|
|
10,329 |
|
|
3.74 |
|
% |
|
|
859,773 |
|
|
|
5,137 |
|
|
2.42 |
|
% |
Total Deposits |
|
8,122,413 |
|
|
|
52,534 |
|
|
2.60 |
|
% |
|
|
8,136,241 |
|
|
|
50,579 |
|
|
2.47 |
|
% |
|
|
8,029,774 |
|
|
|
27,510 |
|
|
1.39 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowed funds |
|
1,940,981 |
|
|
|
17,383 |
|
|
3.60 |
|
% |
|
|
1,873,822 |
|
|
|
17,527 |
|
|
3.71 |
|
% |
|
|
1,224,279 |
|
|
|
7,476 |
|
|
2.48 |
|
% |
Subordinated debentures |
|
10,712 |
|
|
|
272 |
|
|
10.23 |
|
% |
|
|
10,663 |
|
|
|
277 |
|
|
10.27 |
|
% |
|
|
10,511 |
|
|
|
246 |
|
|
9.51 |
|
% |
Total interest-bearing liabilities |
|
10,074,106 |
|
|
|
70,189 |
|
|
2.80 |
|
% |
|
|
10,020,726 |
|
|
|
68,383 |
|
|
2.71 |
|
% |
|
|
9,264,564 |
|
|
|
35,232 |
|
|
1.54 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Bearing
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits |
|
2,072,001 |
|
|
|
|
|
|
|
2,169,542 |
|
|
|
|
|
|
|
2,550,796 |
|
|
|
|
|
Other non-interest bearing liabilities |
|
249,490 |
|
|
|
|
|
|
|
281,504 |
|
|
|
|
|
|
|
290,978 |
|
|
|
|
|
Total non-interest bearing liabilities |
|
2,321,491 |
|
|
|
|
|
|
|
2,451,046 |
|
|
|
|
|
|
|
2,841,774 |
|
|
|
|
|
Total liabilities |
|
12,395,597 |
|
|
|
|
|
|
|
12,471,772 |
|
|
|
|
|
|
|
12,106,338 |
|
|
|
|
|
Stockholders' equity |
|
1,698,170 |
|
|
|
|
|
|
|
1,642,854 |
|
|
|
|
|
|
|
1,626,370 |
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
14,093,767 |
|
|
|
|
|
|
$ |
14,114,626 |
|
|
|
|
|
|
$ |
13,732,708 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$ |
93,670 |
|
|
|
|
|
|
$ |
95,788 |
|
|
|
|
|
|
$ |
108,324 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate spread |
|
|
|
|
2.26 |
|
% |
|
|
|
|
|
2.33 |
|
% |
|
|
|
|
|
3.09 |
|
% |
Net interest-earning
assets |
$ |
2,788,804 |
|
|
|
|
|
|
$ |
2,802,815 |
|
|
|
|
|
|
$ |
3,153,966 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (3) |
|
|
|
|
2.87 |
|
% |
|
|
|
|
|
2.92 |
|
% |
|
|
|
|
|
3.48 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of interest-earning
assets to total interest-bearing liabilities |
1.28x |
|
|
|
|
|
1.28x |
|
|
|
|
|
1.34x |
|
|
|
|
(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.
|
3/31/24 |
|
12/31/23 |
|
9/30/23 |
|
6/30/23 |
|
3/31/23 |
|
1st Qtr. |
|
4th Qtr. |
|
3rd Qtr. |
|
2nd Qtr. |
|
1st Qtr. |
Interest-Earning
Assets: |
|
|
|
|
|
|
|
|
|
Securities |
2.87 |
|
% |
|
2.79 |
|
% |
|
2.67 |
|
% |
|
2.53 |
|
% |
|
2.52 |
|
% |
Net loans |
5.51 |
|
% |
|
5.50 |
|
% |
|
5.37 |
|
% |
|
5.24 |
|
% |
|
5.12 |
|
% |
Total interest-earning assets |
5.06 |
|
% |
|
5.04 |
|
% |
|
4.89 |
|
% |
|
4.73 |
|
% |
|
4.63 |
|
% |
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities: |
|
|
|
|
|
|
|
|
|
Total deposits |
2.60 |
|
% |
|
2.47 |
|
% |
|
2.22 |
|
% |
|
1.85 |
|
% |
|
1.39 |
|
% |
Total borrowings |
3.60 |
|
% |
|
3.71 |
|
% |
|
3.74 |
|
% |
|
3.41 |
|
% |
|
2.48 |
|
% |
Total interest-bearing liabilities |
2.80 |
|
% |
|
2.71 |
|
% |
|
2.50 |
|
% |
|
2.13 |
|
% |
|
1.54 |
|
% |
|
|
|
|
|
|
|
|
|
|
Interest rate spread |
2.26 |
|
% |
|
2.33 |
|
% |
|
2.39 |
|
% |
|
2.60 |
|
% |
|
3.09 |
|
% |
Net interest margin |
2.87 |
|
% |
|
2.92 |
|
% |
|
2.96 |
|
% |
|
3.11 |
|
% |
|
3.48 |
|
% |
|
|
|
|
|
|
|
|
|
|
Ratio of interest-earning
assets to interest-bearing liabilities |
1.28x |
|
1.28x |
|
1.30x |
|
1.31x |
|
1.34x |
|
PROVIDENT FINANCIAL SERVICES, INC. AND
SUBSIDIARY |
Net Interest Margin Analysis |
Average Year to Date Balances |
(Dollars in Thousands) (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2024 |
|
March 31, 2023 |
|
Average |
|
|
|
Average |
|
Average |
|
|
|
Average |
|
Balance |
|
Interest |
|
Yield/Cost |
|
Balance |
|
Interest |
|
Yield/Cost |
Interest-Earning
Assets: |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
$ |
87,848 |
|
|
$ |
1,182 |
|
|
5.41 |
|
% |
|
$ |
72,022 |
|
|
$ |
845 |
|
|
4.76 |
|
% |
Federal funds sold and other short term investments |
|
21 |
|
|
|
— |
|
|
— |
|
% |
|
|
29 |
|
|
|
— |
|
|
3.70 |
|
% |
Available for sale debt securities |
|
1,673,950 |
|
|
|
10,022 |
|
|
2.39 |
|
% |
|
|
1,808,619 |
|
|
|
10,402 |
|
|
2.30 |
|
% |
Held to maturity debt securities, net (1) |
|
357,246 |
|
|
|
2,268 |
|
|
2.54 |
|
% |
|
|
383,907 |
|
|
|
2,368 |
|
|
2.47 |
|
% |
Equity securities, at fair value |
|
1,099 |
|
|
|
— |
|
|
— |
|
% |
|
|
991 |
|
|
|
— |
|
|
— |
|
% |
Federal Home Loan Bank stock |
|
73,754 |
|
|
|
2,308 |
|
|
12.52 |
|
% |
|
|
59,106 |
|
|
|
1,028 |
|
|
6.96 |
|
% |
Net loans: (2) |
|
|
|
|
|
|
|
|
|
|
|
Total mortgage loans |
|
7,990,218 |
|
|
|
107,456 |
|
|
5.33 |
|
% |
|
|
7,643,140 |
|
|
|
95,988 |
|
|
5.02 |
|
% |
Total commercial loans |
|
2,381,965 |
|
|
|
36,100 |
|
|
6.03 |
|
% |
|
|
2,146,658 |
|
|
|
28,683 |
|
|
5.37 |
|
% |
Total consumer loans |
|
296,809 |
|
|
|
4,523 |
|
|
6.13 |
|
% |
|
|
304,058 |
|
|
|
4,242 |
|
|
5.66 |
|
% |
Total net loans |
|
10,668,992 |
|
|
|
148,079 |
|
|
5.51 |
|
% |
|
|
10,093,856 |
|
|
|
128,913 |
|
|
5.12 |
|
% |
Total interest-earning assets |
$ |
12,862,910 |
|
|
$ |
163,859 |
|
|
5.06 |
|
% |
|
$ |
12,418,530 |
|
|
$ |
143,556 |
|
|
4.63 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Earning
Assets: |
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
116,563 |
|
|
|
|
|
|
|
142,953 |
|
|
|
|
|
Other assets |
|
1,114,294 |
|
|
|
|
|
|
|
1,171,225 |
|
|
|
|
|
Total assets |
$ |
14,093,767 |
|
|
|
|
|
|
$ |
13,732,708 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
$ |
5,894,062 |
|
|
$ |
41,566 |
|
|
2.84 |
|
% |
|
$ |
5,771,582 |
|
|
$ |
21,920 |
|
|
1.54 |
|
% |
Savings deposits |
|
1,163,181 |
|
|
|
637 |
|
|
0.22 |
|
% |
|
|
1,398,419 |
|
|
|
453 |
|
|
0.13 |
|
% |
Time deposits |
|
1,065,170 |
|
|
|
10,331 |
|
|
3.90 |
|
% |
|
|
859,773 |
|
|
|
5,137 |
|
|
2.42 |
|
% |
Total deposits |
|
8,122,413 |
|
|
|
52,534 |
|
|
2.60 |
|
% |
|
|
8,029,774 |
|
|
|
27,510 |
|
|
1.39 |
|
% |
Borrowed funds |
|
1,940,981 |
|
|
|
17,383 |
|
|
3.60 |
|
% |
|
|
1,224,279 |
|
|
|
7,476 |
|
|
2.48 |
|
% |
Subordinated debentures |
|
10,712 |
|
|
|
272 |
|
|
10.23 |
|
% |
|
|
10,511 |
|
|
|
246 |
|
|
9.51 |
|
% |
Total interest-bearing liabilities |
$ |
10,074,106 |
|
|
$ |
70,189 |
|
|
2.80 |
|
% |
|
$ |
9,264,564 |
|
|
$ |
35,232 |
|
|
1.54 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Bearing
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits |
|
2,072,001 |
|
|
|
|
|
|
|
2,550,796 |
|
|
|
|
|
Other non-interest bearing liabilities |
|
249,490 |
|
|
|
|
|
|
|
290,978 |
|
|
|
|
|
Total non-interest bearing liabilities |
|
2,321,491 |
|
|
|
|
|
|
|
2,841,774 |
|
|
|
|
|
Total liabilities |
|
12,395,597 |
|
|
|
|
|
|
|
12,106,338 |
|
|
|
|
|
Stockholders' equity |
|
1,698,170 |
|
|
|
|
|
|
|
1,626,370 |
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
14,093,767 |
|
|
|
|
|
|
$ |
13,732,708 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
$ |
93,670 |
|
|
|
|
|
|
$ |
108,324 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate spread |
|
|
|
|
2.26 |
|
% |
|
|
|
|
|
3.09 |
|
% |
Net interest-earning
assets |
$ |
2,788,804 |
|
|
|
|
|
|
$ |
3,153,966 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (3) |
|
|
|
|
2.87 |
|
% |
|
|
|
|
|
3.48 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of interest-earning
assets to total interest-bearing liabilities |
1.28x |
|
|
|
|
|
1.34x |
|
|
|
|
(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.
|
Three Months Ended |
|
March 31, 2024 |
|
March 31, 2023 |
|
March 31, 2022 |
Interest-Earning
Assets: |
|
|
|
|
|
Securities |
2.87 |
|
% |
|
2.52 |
|
% |
|
1.47 |
|
% |
Net loans |
5.51 |
|
% |
|
5.12 |
|
% |
|
3.80 |
|
% |
Total interest-earning assets |
5.06 |
|
% |
|
4.63 |
|
% |
|
3.23 |
|
% |
|
|
|
|
|
|
Interest-Bearing
Liabilities: |
|
|
|
|
|
Total deposits |
2.60 |
|
% |
|
1.39 |
|
% |
|
0.25 |
|
% |
Total borrowings |
3.60 |
|
% |
|
2.48 |
|
% |
|
0.86 |
|
% |
Total interest-bearing liabilities |
2.80 |
|
% |
|
1.54 |
|
% |
|
0.29 |
|
% |
|
|
|
|
|
|
Interest rate spread |
2.26 |
|
% |
|
3.09 |
|
% |
|
2.94 |
|
% |
Net interest margin |
2.87 |
|
% |
|
3.48 |
|
% |
|
3.02 |
|
% |
|
|
|
|
|
|
Ratio of interest-earning
assets to interest-bearing liabilities |
1.28x |
|
1.34x |
|
1.39x |
SOURCE: Provident Financial Services,
Inc.CONTACT: Investor Relations,
1-732-590-9300Web
Site: http://www.Provident.Bank
Provident Financial Serv... (NYSE:PFS)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
Provident Financial Serv... (NYSE:PFS)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024