Provident Financial Services, Inc. Announces Fourth Quarter and Full Year Earnings, Declaration of Quarterly Cash Dividend and Annual Meeting Date
- The company's total loan portfolio increased by 7.7% annually.
- The net interest margin decreased to 2.92% for the quarter ended December 31, 2023.
- The average yield on total loans increased to 5.50% for the quarter ended December 31, 2023.
- The net income for the year ended December 31, 2023, decreased to $128.4 million from $175.6 million for the year ended December 31, 2022.
- Transaction costs related to the pending merger with Lakeland Bancorp, Inc. totaled $2.5 million and $7.8 million for the three months and year ended December 31, 2023, respectively.
Insights
The reported net income of Provident Financial Services, Inc. for the fourth quarter of 2023 indicates a sequential and year-over-year decline. This is noteworthy as it suggests a contraction in profitability, which could be a red flag for investors and analysts monitoring the company's performance. The decrease in net interest income and the increased provisions for credit losses, attributed to a worsened economic forecast, reflect broader economic conditions that may be affecting the banking sector. The rise in the cost of deposits and borrowings, despite a growing loan portfolio, speaks to the challenges of managing interest rate risk in a volatile rate environment.
The decline in net interest margin by four basis points quarter-over-quarter and a more significant drop year-over-year, could signal pressure on the company's interest income relative to interest expenses, a critical metric for financial institutions. The reported increase in loan growth and stable fee income from wealth management and insurance agency businesses provide some counterbalance to the interest income pressures, suggesting diversification in revenue streams.
Regarding the pending merger with Lakeland Bancorp, Inc., the extension of the merger deadline may introduce uncertainties that could affect investor sentiment. Mergers and acquisitions are often closely watched for their strategic impact and potential to create shareholder value through synergies and expanded market presence.
The financial results of Provident Financial Services, Inc. indicate a shift in the funding mix and an environment of elevated short-term interest rates affecting the net interest margin. This is a critical observation for stakeholders, as it reflects the sensitivity of the banking industry to interest rate fluctuations. The stabilization in funding costs mentioned by the CEO could be a positive sign for future quarters, potentially easing margin pressures.
Furthermore, the company's loan pipeline and the composition of its loan portfolio, particularly the granular nature of the office loans and limited delinquencies, provide insight into the risk profile of its lending activities. The strong asset quality, as indicated by the CEO, is reassuring and suggests a robust credit assessment framework, which is essential for maintaining financial stability in the face of a challenging economic forecast.
The efficiency ratio and the provision for credit losses are also critical metrics for evaluating operational efficiency and credit risk management. The reported increase in the efficiency ratio year-over-year may raise questions about cost management and operational efficiency, whereas the decrease in provision for credit losses quarter-over-quarter may indicate an improving credit environment or adjustments in credit risk models.
Provident Financial Services, Inc.'s report sheds light on the broader economic trends impacting the banking sector, such as interest rate volatility and economic forecasts. The increase in provisions for credit losses due to a worsened economic outlook suggests anticipation of potential credit challenges ahead. This could be reflective of broader economic headwinds that may affect consumer and business loan repayment capabilities.
The company's performance highlights the importance of interest rate risk management within the banking sector, especially in a period of rising rates. The impact on net interest margins has implications for the sector's profitability and the need for financial institutions to adapt to changing economic conditions. The mention of elevated short-term interest rates points to the influence of monetary policy on banking operations, potentially indicating a response to inflationary pressures.
The extended merger timeline with Lakeland Bancorp, Inc. also has broader economic implications, as regulatory scrutiny may reflect a cautious approach in ensuring financial stability and compliance with banking regulations. The outcome of this merger could have implications for competition and service provision within the regional banking landscape.
ISELIN, N.J., Jan. 25, 2024 (GLOBE NEWSWIRE) -- Provident Financial Services, Inc. (NYSE:PFS) (the “Company”) reported net income of
Performance Highlights for the Fourth Quarter of 2023
- The Company’s total loan portfolio increased
$206.1 million , or7.7% annualized, to$10.87 billion at December 31, 2023, from$10.67 billion at September 30, 2023. - Net interest income before provision for credit losses remained relatively flat at
$95.8 million for the three months ended December 31, 2023, compared to the prior quarter. - The net interest margin decreased four basis points to
2.92% for the quarter ended December 31, 2023, from2.96% for the trailing quarter. - The average yield on total loans increased 13 basis points to
5.50% for the quarter ended December 31, 2023, compared to the trailing quarter, while the average cost of deposits, including non-interest-bearing deposits, increased 21 basis points to1.95% for the quarter ended December 31, 2023. - At December 31, 2023, the Company's loan pipeline, consisting of work-in-process and loans approved pending closing, totaled
$1.09 billion , with a weighted average interest rate of7.08% . - At December 31, 2023, CRE loans related to office properties totaled
$483.1 million , compared to$483.3 million at September 30, 2023. This portfolio constitutes4.5% of total loans. Approximately35% of our office loans are to medical offices and we do not have significant central business district exposure. Delinquencies in the office portfolio at December 31, 2023, were limited to one loan totaling$825,000. T he portfolio is granular, with an average outstanding loan balance of$1.8 million and just three relationships greater than$10.0 million . - The Company recorded a
$500,000 provision for credit losses for the quarter ended December 31, 2023, compared to an$11.0 million 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. - The Company's earnings for the quarter and year ended December 31, 2023 were negatively impacted by a
$3.0 million charge for contingent litigation reserves, a$2.0 million write-down of a foreclosed property and a$775,000 charge for the FDIC special assessment. - The Company's annualized adjusted pre-tax, pre-provision ("PTPP") return on average assets(1) was
1.25% for the quarter ended December 31, 2023, compared to1.48% for the quarter ended September 30, 2023. - Annualized returns on average assets, average equity and average tangible equity(1) were
0.77% ,6.60% and9.15% , respectively for the three months ended December 31, 2023, compared with0.81% ,6.84% and9.47% , respectively for the trailing quarter.
Anthony J. Labozzetta, President and Chief Executive Officer commented, “Provident produced respectable financial results for the fourth quarter and the full year 2023 despite challenging market conditions throughout the year. We had solid loan growth, including annualized growth in our total loan portfolio of
Regarding the previously announced pending merger with Lakeland Bancorp, Inc., Labozzetta added, “Provident is actively engaged in discussions with our regulators concerning the merger. Both Provident and Lakeland have agreed to extend the merger deadline to March 31, 2024, to allow additional time to obtain the necessary regulatory approvals. Provident looks forward to closing the transaction as soon as possible following receipt of the approvals.”
Declaration of Quarterly Dividend
The Company’s Board of Directors declared a quarterly cash dividend of
Annual Meeting Date Set
The Annual Meeting of Stockholders will be held on April 25, 2024 at 10:00 a.m. Eastern Time as a virtual meeting. March 1, 2024 has been established as the record date for the determination of stockholders entitled to vote at the Annual Meeting.
Results of Operations
Three months ended December 31, 2023 compared to the three months ended September 30, 2023
For the three months ended December 31, 2023, net income was
Net Interest Income and Net Interest Margin
Net interest income decreased
The Company’s net interest margin decreased four basis points to
Provision for Credit Losses
For the quarter ended December 31, 2023, the Company recorded a
Non-Interest Income and Expense
For the three months ended December 31, 2023, non-interest income totaled
Non-interest expense totaled
The Company’s annualized adjusted non-interest expense as a percentage of average assets(1) was
Income Tax Expense
For the three months ended December 31, 2023, the Company's income tax expense was
Three months ended December 31, 2023 compared to the three months ended December 31, 2022
For the three months ended December 31, 2023, net income was
Net Interest Income and Net Interest Margin
Net interest income decreased
The Company’s net interest margin decreased 70 basis points to
Provision for Credit Losses
For the quarter ended December 31, 2023, the Company recorded a
Non-Interest Income and Expense
Non-interest income totaled
Non-interest expense totaled
The Company’s annualized adjusted non-interest expense as a percentage of average assets(1) was
Income Tax Expense
For the three months ended December 31, 2023, the Company's income tax expense was
Year Ended December 31, 2023 compared to the Year ended December 31, 2022
For the year ended December 31, 2023, net income totaled
Net Interest Income and Net Interest Margin
Net interest income decreased
For the year ended December 31, 2023, the net interest margin decreased 21 basis points to
Provision for Credit Losses
For the year ended December 31, 2023, the Company recorded a
Non-Interest Income and Expense
For the year ended December 31, 2023, non-interest income totaled
Non-interest expense totaled
Income Tax Expense
For the year ended December 31, 2023, the Company's income tax expense was
Asset Quality
The Company’s total non-performing loans at December 31, 2023 were
At December 31, 2023, the Company’s allowance for credit losses related to the loan portfolio was
The following table sets forth accruing past due loans and non-accrual loans on the dates indicated, as well as certain asset quality ratios.
| December 31, 2023 | September 30, 2023 | December 31, 2022 | ||||||||||||||||||
| Number of Loans | Principal Balance of Loans | Number of Loans | Principal Balance of Loans | Number of Loans | Principal Balance of Loans | |||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Accruing past due loans: | ||||||||||||||||||||
| 30 to 59 days past due: | ||||||||||||||||||||
| Commercial mortgage loans | 1 | $ | 825 | — | $ | — | 2 | $ | 2,300 | |||||||||||
| Multi-family mortgage loans | 1 | 3,815 | 2 | 5,473 | 1 | 790 | ||||||||||||||
| Construction loans | — | — | — | — | 1 | 905 | ||||||||||||||
| Residential mortgage loans | 13 | 3,429 | 9 | 1,588 | 10 | 1,411 | ||||||||||||||
| Total mortgage loans | 15 | 8,069 | 11 | 7,061 | 14 | 5,406 | ||||||||||||||
| Commercial loans | 6 | 998 | 6 | 1,959 | 5 | 964 | ||||||||||||||
| Consumer loans | 31 | 875 | 27 | 1,207 | 18 | 885 | ||||||||||||||
| Total 30 to 59 days past due | 52 | $ | 9,942 | 44 | $ | 10,227 | 37 | $ | 7,255 | |||||||||||
| 60 to 89 days past due: | ||||||||||||||||||||
| Commercial mortgage loans | — | $ | — | 2 | $ | 587 | 2 | $ | 412 | |||||||||||
| Multi-family mortgage loans | 1 | 1,635 | — | — | — | — | ||||||||||||||
| Construction loans | — | — | — | — | 1 | 1,097 | ||||||||||||||
| Residential mortgage loans | 8 | 1,208 | 7 | 936 | 9 | 1,114 | ||||||||||||||
| Total mortgage loans | 9 | 2,843 | 9 | 1,523 | 12 | 2,623 | ||||||||||||||
| Commercial loans | 3 | 198 | 4 | 228 | 5 | 1,014 | ||||||||||||||
| Consumer loans | 5 | 275 | 4 | 168 | 4 | 147 | ||||||||||||||
| Total 60 to 89 days past due | 17 | 3,316 | 17 | 1,919 | 21 | 3,784 | ||||||||||||||
| Total accruing past due loans | 69 | $ | 13,258 | 61 | $ | 12,146 | 58 | $ | 11,039 | |||||||||||
| Non-accrual: | ||||||||||||||||||||
| Commercial mortgage loans | 7 | $ | 5,151 | 9 | $ | 11,667 | 10 | $ | 28,212 | |||||||||||
| Multi-family mortgage loans | 1 | 744 | 2 | 2,258 | 1 | 1,565 | ||||||||||||||
| Construction loans | 1 | 771 | 2 | 1,868 | 2 | 1,878 | ||||||||||||||
| Residential mortgage loans | 7 | 853 | 11 | 1,329 | 14 | 1,928 | ||||||||||||||
| Total mortgage loans | 16 | 7,519 | 24 | 17,122 | 27 | 33,583 | ||||||||||||||
| Commercial loans | 26 | 41,487 | 27 | 21,912 | 34 | 24,188 | ||||||||||||||
| Consumer loans | 10 | 633 | 7 | 495 | 10 | 738 | ||||||||||||||
| Total non-accrual loans | 52 | $ | 49,639 | 58 | $ | 39,529 | 71 | $ | 58,509 | |||||||||||
| Non-performing loans to total loans | 0.46 | % | 0.37 | % | 0.57 | % | ||||||||||||||
| Allowance for loan losses to total non-performing loans | 215.96 | % | 272.11 | % | 150.44 | % | ||||||||||||||
| Allowance for loan losses to total loans | 0.99 | % | 1.01 | % | 0.86 | % | ||||||||||||||
At December 31, 2023 and December 31, 2022, the Company held foreclosed assets of
Balance Sheet Summary
Total assets at December 31, 2023 were
The Company’s loan portfolio totaled
| December 31, 2023 | September 30, 2023 | December 31, 2022 | |||||||||
| (Dollars in thousands) | |||||||||||
| Mortgage loans: | |||||||||||
| Commercial | $ | 4,512,411 | $ | 4,411,099 | $ | 4,316,185 | |||||
| Multi-family | 1,812,500 | 1,790,039 | 1,513,818 | ||||||||
| Construction | 653,246 | 667,462 | 715,494 | ||||||||
| Residential | 1,164,956 | 1,167,570 | 1,177,698 | ||||||||
| Total mortgage loans | 8,143,113 | 8,036,170 | 7,723,195 | ||||||||
| Commercial loans | 2,442,406 | 2,340,080 | 2,233,670 | ||||||||
| Consumer loans | 299,164 | 302,769 | 304,780 | ||||||||
| Total gross loans | 10,884,683 | 10,679,019 | 10,261,645 | ||||||||
| Premiums on purchased loans | 1,474 | 1,413 | 1,380 | ||||||||
| Net deferred fees and unearned discounts | (12,456 | ) | (12,820 | ) | (14,142 | ) | |||||
| Total loans | $ | 10,873,701 | $ | 10,667,612 | $ | 10,248,883 | |||||
For the year ended December 31, 2023, the Company experienced net increases of
For the year ended December 31, 2023, loan funding, including advances on lines of credit, totaled
At December 31, 2023, the Company’s unfunded loan commitments totaled
The loan pipeline, consisting of work-in-process and loans approved pending closing, totaled
Total investment securities were
Total deposits decreased
Borrowed funds increased
Stockholders’ equity increased
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, January 26, 2024 at 10:00 a.m. Eastern Time to discuss the Company’s financial results for the quarter and year ended December 31, 2023. 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 (including the closing of three financial institutions), changes in accounting policies and practices that may be adopted by the regulatory agencies and the accounting standards setters, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, potential goodwill impairment, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets, the availability of and costs associated with sources of liquidity, the ability to complete, or any delays in completing, the pending merger between the Company and Lakeland; any failure to realize the anticipated benefits of the transaction when expected or at all; 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 transaction may be more expensive to complete than anticipated, including as a result of unexpected 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) | |||||||||||||||||||
| At or for the Three Months Ended | At or for the Year Ended | ||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||
| 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||
| Statement of Income | |||||||||||||||||||
| Net interest income | $ | 95,788 | $ | 96,236 | $ | 114,060 | $ | 399,454 | $ | 417,552 | |||||||||
| Provision for credit losses | 497 | 11,009 | 3,384 | 27,904 | 8,388 | ||||||||||||||
| Non-interest income | 18,968 | 19,320 | 18,266 | 79,829 | 87,789 | ||||||||||||||
| Non-interest expense | 74,491 | 67,157 | 61,674 | 275,600 | 256,847 | ||||||||||||||
| Income before income tax expense | 39,768 | 37,390 | 67,268 | 175,779 | 240,106 | ||||||||||||||
| Net income | 27,312 | 28,547 | 49,034 | 128,398 | 175,648 | ||||||||||||||
| Diluted earnings per share | $ | 0.36 | $ | 0.38 | $ | 0.66 | $ | 1.71 | $ | 2.35 | |||||||||
| Interest rate spread | 2.33 | % | 2.39 | % | 3.36 | % | 2.63 | % | 3.22 | % | |||||||||
| Net interest margin | 2.92 | % | 2.96 | % | 3.62 | % | 3.16 | % | 3.37 | % | |||||||||
| Profitability | |||||||||||||||||||
| Annualized return on average assets | 0.77 | % | 0.81 | % | 1.42 | % | 0.92 | % | 1.29 | % | |||||||||
| Annualized return on average equity | 6.60 | % | 6.84 | % | 12.37 | % | 7.81 | % | 10.86 | % | |||||||||
| Annualized return on average tangible equity(2) | 9.15 | % | 9.47 | % | 17.51 | % | 10.84 | % | 15.20 | % | |||||||||
| Annualized adjusted non-interest expense to average assets(3) | 1.98 | % | 1.80 | % | 1.79 | % | 1.90 | % | 1.88 | % | |||||||||
| Efficiency ratio(4) | 61.32 | % | 54.81 | % | 46.88 | % | 55.19 | % | 50.68 | % | |||||||||
| Asset Quality | |||||||||||||||||||
| Non-accrual loans | $ | 39,529 | $ | 49,639 | $ | 58,509 | |||||||||||||
| 90+ and still accruing | — | — | — | ||||||||||||||||
| Non-performing loans | 39,529 | 49,639 | 58,509 | ||||||||||||||||
| Foreclosed assets | 16,487 | 11,651 | 2,124 | ||||||||||||||||
| Non-performing assets | 56,016 | 61,290 | 60,633 | ||||||||||||||||
| Non-performing loans to total loans | 0.37 | % | 0.46 | % | 0.57 | % | |||||||||||||
| Non-performing assets to total assets | 0.40 | % | 0.43 | % | 0.44 | % | |||||||||||||
| Allowance for loan losses | $ | 107,563 | $ | 107,200 | $ | 88,023 | |||||||||||||
| Allowance for loan losses to total non-performing loans | 272.11 | % | 215.96 | % | 150.44 | % | |||||||||||||
| Allowance for loan losses to total loans | 1.01 | % | 0.99 | % | 0.86 | % | |||||||||||||
| Net loan charge-offs | $ | 863 | 5,510 | $ | 4,010 | $ | 8,129 | $ | 1,117 | ||||||||||
| Annualized net loan charge offs to average total loans | 0.03 | % | 0.21 | % | 0.16 | % | 0.08 | % | 0.01 | % | |||||||||
| Average Balance Sheet Data | |||||||||||||||||||
| Assets | $ | 14,114,626 | $ | 13,976,610 | $ | 13,714,201 | $ | 13,915,467 | $ | 13,642,849 | |||||||||
| Loans, net | 10,660,201 | 10,470,843 | 10,107,451 | 10,367,620 | 9,798,822 | ||||||||||||||
| Earning assets | 12,823,541 | 12,735,938 | 12,406,641 | 12,637,224 | 12,412,830 | ||||||||||||||
| Savings and demand deposits | 9,210,315 | 9,212,202 | 10,092,807 | 9,358,290 | 10,318,261 | ||||||||||||||
| Borrowings | 1,873,822 | 1,780,655 | 1,031,974 | 1,636,572 | 756,275 | ||||||||||||||
| Interest-bearing liabilities | 10,020,726 | 9,826,064 | 9,164,135 | 9,671,794 | 9,025,495 | ||||||||||||||
| Stockholders' equity | 1,642,854 | 1,654,920 | 1,572,572 | 1,644,529 | 1,618,090 | ||||||||||||||
| Average yield on interest-earning assets | 5.04 | % | 4.89 | % | 4.36 | % | 4.87 | % | 3.76 | % | |||||||||
| Average cost of interest-bearing liabilities | 2.71 | % | 2.50 | % | 1.00 | % | 2.24 | % | 0.54 | % | |||||||||
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) Annualized Adjusted Pre-Tax, Pre-Provision ("PTPP") Return on Average Assets | |||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||
| 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||
| Net income | $ | 27,312 | $ | 28,547 | $ | 49,034 | $ | 128,398 | $ | 175,648 | |||||||||
| Adjustments to net income: | |||||||||||||||||||
| Provision for credit losses | 497 | 11,009 | 3,384 | 27,904 | 8,388 | ||||||||||||||
| Credit (benefit) loss expense for off-balance sheet credit exposure | (1,360 | ) | 1,532 | (1,596 | ) | 264 | (3,384 | ) | |||||||||||
| Merger-related transaction costs | 2,477 | 2,289 | 1,242 | 7,826 | 4,128 | ||||||||||||||
| Contingent litigation reserves | 3,000 | — | — | 3,000 | — | ||||||||||||||
| Income tax expense | 12,456 | 8,843 | 18,234 | 47,381 | 64,458 | ||||||||||||||
| Adjusted PTPP income | $ | 44,382 | $ | 52,220 | $ | 70,298 | $ | 214,773 | $ | 249,238 | |||||||||
| Annualized Adjusted PTPP income | $ | 176,081 | $ | 207,177 | $ | 278,900 | $ | 214,773 | $ | 249,238 | |||||||||
| Average assets | $ | 14,114,626 | $ | 13,976,610 | $ | 13,714,201 | $ | 13,915,467 | $ | 13,642,849 | |||||||||
| Annualized Adjusted PTPP return on average assets | 1.25 | % | 1.48 | % | 2.03 | % | 1.54 | % | 1.83 | % | |||||||||
| (2) Annualized Return on Average Tangible Equity | |||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||
| 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||
| Total average stockholders' equity | $ | 1,642,854 | $ | 1,654,920 | $ | 1,572,572 | $ | 1,644,529 | $ | 1,618,090 | |||||||||
| Less: total average intangible assets | 458,410 | 459,133 | 461,402 | 459,503 | 462,620 | ||||||||||||||
| Total average tangible stockholders' equity | $ | 1,184,444 | $ | 1,195,787 | $ | 1,111,170 | $ | 1,185,026 | $ | 1,155,470 | |||||||||
| Net income | $ | 27,312 | $ | 28,547 | $ | 49,034 | $ | 128,398 | $ | 175,648 | |||||||||
| Annualized return on average tangible equity (net income/total average tangible stockholders' equity) | 9.15 | % | 9.47 | % | 17.51 | % | 10.84 | % | 15.20 | % | |||||||||
| (3) Annualized Adjusted Non-Interest Expense to Average Assets | |||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||
| 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||
| Reported non-interest expense | $ | 74,491 | $ | 67,157 | $ | 61,674 | $ | 275,600 | $ | 256,847 | |||||||||
| Adjustments to non-interest expense: | |||||||||||||||||||
| Credit (benefit) loss expense for off-balance sheet credit exposure | (1,360 | ) | 1,532 | (1,596 | ) | 264 | (3,384 | ) | |||||||||||
| Merger-related transaction costs | 2,477 | 2,289 | 1,242 | 7,826 | 4,128 | ||||||||||||||
| Contingent litigation reserves | 3,000 | — | — | 3,000 | — | ||||||||||||||
| Adjusted non-interest expense | $ | 70,374 | $ | 63,336 | $ | 62,028 | $ | 264,510 | $ | 256,103 | |||||||||
| Annualized adjusted non-interest expense | $ | 279,201 | $ | 251,279 | $ | 246,089 | $ | 264,510 | $ | 256,103 | |||||||||
| Average assets | $ | 14,114,626 | $ | 13,976,610 | $ | 13,714,201 | $ | 13,915,467 | $ | 13,642,849 | |||||||||
| Annualized adjusted non-interest expense/average assets | 1.98 | % | 1.80 | % | 1.79 | % | 1.90 | % | 1.88 | % | |||||||||
| (4) Efficiency Ratio Calculation | |||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||
| 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||
| Net interest income | $ | 95,788 | $ | 96,236 | $ | 114,060 | $ | 399,454 | $ | 417,552 | |||||||||
| Non-interest income | 18,968 | 19,320 | 18,266 | 79,829 | 87,789 | ||||||||||||||
| Total income | $ | 114,756 | $ | 115,556 | $ | 132,326 | $ | 479,283 | $ | 505,341 | |||||||||
| Adjusted non-interest expense | $ | 70,374 | $ | 63,336 | $ | 62,028 | $ | 264,510 | $ | 256,103 | |||||||||
| Efficiency ratio (adjusted non-interest expense/income) | 61.32 | % | 54.81 | % | 46.88 | % | 55.19 | % | 50.68 | % | |||||||||
| (5) Book and Tangible Book Value per Share | |||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||
| Total stockholders' equity | $ | 1,690,596 | $ | 1,597,703 | |||||||||||||||
| Less: total intangible assets | 457,942 | 460,892 | |||||||||||||||||
| Total tangible stockholders' equity | $ | 1,232,654 | $ | 1,136,811 | |||||||||||||||
| Shares outstanding | 75,537,186 | 75,169,196 | |||||||||||||||||
| Book value per share (total stockholders' equity/shares outstanding) | $ | 22.38 | $ | 21.25 | |||||||||||||||
| Tangible book value per share (total tangible stockholders' equity/shares outstanding) | $ | 16.32 | $ | 15.12 | |||||||||||||||
| PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY | |||||||
| Consolidated Statements of Financial Condition | |||||||
| December 31, 2023 (Unaudited) and December 31, 2022 | |||||||
| (Dollars in Thousands) | |||||||
| Assets | December 31, 2023 | December 31, 2022 | |||||
| Cash and due from banks | $ | 180,241 | $ | 186,490 | |||
| Short-term investments | 14 | 18 | |||||
| Total cash and cash equivalents | 180,255 | 186,508 | |||||
| Available for sale debt securities, at fair value | 1,690,112 | 1,803,548 | |||||
| Held to maturity debt securities, net (fair value of | 363,080 | 387,923 | |||||
| Equity securities, at fair value | 1,270 | 1,147 | |||||
| Federal Home Loan Bank stock | 79,217 | 68,554 | |||||
| Loans | 10,873,701 | 10,248,883 | |||||
| Less allowance for credit losses | 107,200 | 88,023 | |||||
| Net loans | 10,766,501 | 10,160,860 | |||||
| Foreclosed assets, net | 11,651 | 2,124 | |||||
| Banking premises and equipment, net | 70,998 | 79,794 | |||||
| Accrued interest receivable | 58,966 | 51,903 | |||||
| Intangible assets | 457,942 | 460,892 | |||||
| Bank-owned life insurance | 243,050 | 239,040 | |||||
| Other assets | 287,768 | 341,143 | |||||
| Total assets | $ | 14,210,810 | $ | 13,783,436 | |||
| Liabilities and Stockholders' Equity | |||||||
| Deposits: | |||||||
| Demand deposits | $ | 8,020,889 | $ | 8,373,005 | |||
| Savings deposits | 1,175,683 | 1,438,583 | |||||
| Certificates of deposit of | 373,701 | 289,684 | |||||
| Other time deposits | 722,241 | 423,180 | |||||
| Total deposits | 10,292,514 | 10,563,024 | |||||
| Mortgage escrow deposits | 36,838 | 35,705 | |||||
| Borrowed funds | 1,970,033 | 1,337,370 | |||||
| Subordinated debentures | 10,695 | 10,493 | |||||
| Other liabilities | 210,134 | 239,141 | |||||
| Total liabilities | 12,520,214 | 12,185,733 | |||||
| Stockholders' equity: | |||||||
| Preferred stock, | — | — | |||||
| Common stock, | 832 | 832 | |||||
| Additional paid-in capital | 989,058 | 981,138 | |||||
| Retained earnings | 974,542 | 918,158 | |||||
| Accumulated other comprehensive (loss) income | (141,115 | ) | (165,045 | ) | |||
| Treasury stock | (127,825 | ) | (127,154 | ) | |||
| Unallocated common stock held by the Employee Stock Ownership Plan | (4,896 | ) | (10,226 | ) | |||
| Common Stock acquired by the Directors' Deferred Fee Plan | (2,694 | ) | (3,427 | ) | |||
| Deferred Compensation - Directors' Deferred Fee Plan | 2,694 | 3,427 | |||||
| Total stockholders' equity | 1,690,596 | 1,597,703 | |||||
| Total liabilities and stockholders' equity | $ | 14,210,810 | $ | 13,783,436 | |||
| PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY | |||||||||||||||||||
| Consolidated Statements of Income | |||||||||||||||||||
| Three months ended December 31, 2023, September 30, 2023 (Unaudited) and December, 2022, and year ended December 31, 2023 (Unaudited) and 2022 | |||||||||||||||||||
| (Dollars in Thousands, except per share data) | |||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||
| 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||
| Interest and dividend income: | |||||||||||||||||||
| Real estate secured loans | $ | 109,112 | $ | 104,540 | $ | 91,140 | $ | 408,942 | $ | 304,321 | |||||||||
| Commercial loans | 34,939 | 33,806 | 28,576 | 128,854 | 98,961 | ||||||||||||||
| Consumer loans | 5,020 | 4,746 | 4,100 | 18,439 | 14,368 | ||||||||||||||
| Available for sale debt securities, equity securities and Federal Home Loan Bank stock | 12,042 | 11,886 | 10,653 | 46,790 | 36,619 | ||||||||||||||
| Held to maturity debt securities | 2,303 | 2,334 | 2,393 | 9,362 | 9,894 | ||||||||||||||
| Deposits, federal funds sold and other short-term investments | 755 | 885 | 313 | 3,433 | 2,018 | ||||||||||||||
| Total interest income | 164,171 | 158,197 | 137,175 | 615,820 | 466,181 | ||||||||||||||
| Interest expense: | |||||||||||||||||||
| Deposits | 50,579 | 44,923 | 18,383 | 159,459 | 38,704 | ||||||||||||||
| Borrowed funds | 17,527 | 16,765 | 4,520 | 55,856 | 9,310 | ||||||||||||||
| Subordinated debt | 277 | 273 | 212 | 1,051 | 615 | ||||||||||||||
| Total interest expense | 68,383 | 61,961 | 23,115 | 216,366 | 48,629 | ||||||||||||||
| Net interest income | 95,788 | 96,236 | 114,060 | 399,454 | 417,552 | ||||||||||||||
| Provision charge for credit losses | 497 | 11,009 | 3,384 | 27,904 | 8,388 | ||||||||||||||
| Net interest income after provision for credit losses | 95,291 | 85,227 | 110,676 | 371,550 | 409,164 | ||||||||||||||
| Non-interest income: | |||||||||||||||||||
| Fees | 6,102 | 6,132 | 6,612 | 24,396 | 28,128 | ||||||||||||||
| Wealth management income | 6,843 | 6,992 | 6,596 | 27,669 | 27,870 | ||||||||||||||
| Insurance agency income | 2,759 | 3,224 | 2,305 | 13,934 | 11,440 | ||||||||||||||
| Bank-owned life insurance | 1,644 | 1,820 | 2,010 | 6,482 | 5,988 | ||||||||||||||
| Net gain on securities transactions | (7 | ) | 13 | 27 | 30 | 181 | |||||||||||||
| Other income | 1,627 | 1,139 | 716 | 7,318 | 14,182 | ||||||||||||||
| Total non-interest income | 18,968 | 19,320 | 18,266 | 79,829 | 87,789 | ||||||||||||||
| Non-interest expense: | |||||||||||||||||||
| Compensation and employee benefits | 38,773 | 35,702 | 34,621 | 148,497 | 147,203 | ||||||||||||||
| Net occupancy expense | 7,797 | 8,113 | 8,304 | 32,271 | 34,566 | ||||||||||||||
| Data processing expense | 6,457 | 5,312 | 5,178 | 22,993 | 21,729 | ||||||||||||||
| FDIC Insurance | 2,890 | 1,628 | 1,240 | 8,578 | 5,195 | ||||||||||||||
| Amortization of intangibles | 721 | 720 | 781 | 2,952 | 3,292 | ||||||||||||||
| Advertising and promotion expense | 1,100 | 1,133 | 1,499 | 4,822 | 5,191 | ||||||||||||||
| Credit loss (benefit) expense for off-balance sheet exposures | (1,360 | ) | 1,532 | (1,596 | ) | 264 | (3,384 | ) | |||||||||||
| Merger-related expenses | 2,477 | 2,289 | 1,242 | 7,826 | 4,128 | ||||||||||||||
| Other operating expenses | 15,636 | 10,728 | 10,405 | 47,397 | 38,927 | ||||||||||||||
| Total non-interest expense | 74,491 | 67,157 | 61,674 | 275,600 | 256,847 | ||||||||||||||
| Income before income tax expense | 39,768 | 37,390 | 67,268 | 175,779 | 240,106 | ||||||||||||||
| Income tax expense | 12,456 | 8,843 | 18,234 | 47,381 | 64,458 | ||||||||||||||
| Net income | $ | 27,312 | $ | 28,547 | $ | 49,034 | $ | 128,398 | $ | 175,648 | |||||||||
| Basic earnings per share | $ | 0.36 | $ | 0.38 | $ | 0.66 | $ | 1.72 | $ | 2.35 | |||||||||
| Average basic shares outstanding | 74,995,705 | 74,909,083 | 74,380,933 | 74,844,489 | 74,700,623 | ||||||||||||||
| Diluted earnings per share | $ | 0.36 | $ | 0.38 | $ | 0.66 | $ | 1.71 | $ | 2.35 | |||||||||
| Average diluted shares outstanding | 75,041,545 | 74,914,205 | 74,443,511 | 74,873,256 | 74,782,370 | ||||||||||||||
| PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY | |||||||||||||||||||||||||||||||||||
| Net Interest Margin Analysis | |||||||||||||||||||||||||||||||||||
| Quarterly Average Balances | |||||||||||||||||||||||||||||||||||
| (Dollars in Thousands) (Unaudited) | |||||||||||||||||||||||||||||||||||
| December 31, 2023 | September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||
| Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | |||||||||||||||||||||||||||
| Interest-Earning Assets: | |||||||||||||||||||||||||||||||||||
| Deposits | $ | 54,998 | $ | 745 | 5.37 | % | $ | 74,183 | $ | 884 | 4.73 | % | $ | 31,481 | $ | 310 | 3.90 | % | |||||||||||||||||
| Federal funds sold and other short-term investments | 838 | 10 | 4.39 | % | 57 | 1 | 4.00 | % | 314 | 3 | 3.57 | % | |||||||||||||||||||||||
| Available for sale debt securities | 1,647,906 | 9,858 | 2.39 | % | 1,724,833 | 10,127 | 2.35 | % | 1,818,356 | 9,825 | 2.16 | % | |||||||||||||||||||||||
| Held to maturity debt securities, net(1) | 364,433 | 2,303 | 2.53 | % | 373,681 | 2,334 | 2.50 | % | 389,729 | 2,393 | 2.46 | % | |||||||||||||||||||||||
| Equity securities, at fair value | 1,016 | — | — | % | 1,068 | — | — | % | 938 | — | — | % | |||||||||||||||||||||||
| Federal Home Loan Bank stock | 94,149 | 2,184 | 9.28 | % | 91,273 | 1,759 | 7.71 | % | 58,372 | 828 | 5.67 | % | |||||||||||||||||||||||
| Net loans:(2) | |||||||||||||||||||||||||||||||||||
| Total mortgage loans | 8,028,300 | 109,112 | 5.34 | % | 7,881,193 | 104,540 | 5.21 | % | 7,625,044 | 91,140 | 4.70 | % | |||||||||||||||||||||||
| Total commercial loans | 2,329,430 | 34,939 | 5.90 | % | 2,289,267 | 33,806 | 5.81 | % | 2,172,358 | 28,576 | 5.17 | % | |||||||||||||||||||||||
| Total consumer loans | 302,471 | 5,020 | 6.58 | % | 300,383 | 4,746 | 6.27 | % | 310,049 | 4,100 | 5.25 | % | |||||||||||||||||||||||
| Total net loans | 10,660,201 | 149,071 | 5.50 | % | 10,470,843 | 143,092 | 5.37 | % | 10,107,451 | 123,816 | 4.82 | % | |||||||||||||||||||||||
| Total interest-earning assets | $ | 12,823,541 | $ | 164,171 | 5.04 | % | $ | 12,735,938 | $ | 158,197 | 4.89 | % | $ | 12,406,641 | $ | 137,175 | 4.36 | % | |||||||||||||||||
| Non-Interest Earning Assets: | |||||||||||||||||||||||||||||||||||
| Cash and due from banks | 111,610 | 82,522 | 134,847 | ||||||||||||||||||||||||||||||||
| Other assets | 1,179,475 | 1,158,150 | 1,172,713 | ||||||||||||||||||||||||||||||||
| Total assets | $ | 14,114,626 | $ | 13,976,610 | $ | 13,714,201 | |||||||||||||||||||||||||||||
| Interest-Bearing Liabilities: | |||||||||||||||||||||||||||||||||||
| Demand deposits | $ | 5,856,916 | $ | 39,648 | 2.69 | % | $ | 5,741,052 | $ | 35,290 | 2.44 | % | $ | 5,927,504 | $ | 15,405 | 1.03 | % | |||||||||||||||||
| Savings deposits | 1,183,857 | 602 | 0.20 | % | 1,240,951 | 592 | 0.19 | % | 1,479,260 | 404 | 0.11 | % | |||||||||||||||||||||||
| Time deposits | 1,095,468 | 10,329 | 3.74 | % | 1,052,793 | 9,041 | 3.41 | % | 714,938 | 2,574 | 1.43 | % | |||||||||||||||||||||||
| Total Deposits | 8,136,241 | 50,579 | 2.47 | % | 8,034,796 | 44,923 | 2.22 | % | 8,121,702 | 18,383 | 0.90 | % | |||||||||||||||||||||||
| Borrowed funds | 1,873,822 | 17,527 | 3.71 | % | 1,780,655 | 16,765 | 3.74 | % | 1,031,974 | 4,520 | 1.74 | % | |||||||||||||||||||||||
| Subordinated debentures | 10,663 | 277 | 10.27 | % | 10,613 | 273 | 10.24 | % | 10,459 | 212 | 8.03 | % | |||||||||||||||||||||||
| Total interest-bearing liabilities | 10,020,726 | 68,383 | 2.71 | % | 9,826,064 | 61,961 | 2.50 | % | 9,164,135 | 23,115 | 1.00 | % | |||||||||||||||||||||||
| Non-Interest Bearing Liabilities: | |||||||||||||||||||||||||||||||||||
| Non-interest bearing deposits | 2,169,542 | 2,230,199 | 2,686,043 | ||||||||||||||||||||||||||||||||
| Other non-interest bearing liabilities | 281,504 | 265,427 | 291,451 | ||||||||||||||||||||||||||||||||
| Total non-interest bearing liabilities | 2,451,046 | 2,495,626 | 2,977,494 | ||||||||||||||||||||||||||||||||
| Total liabilities | 12,471,772 | 12,321,690 | 12,141,629 | ||||||||||||||||||||||||||||||||
| Stockholders' equity | 1,642,854 | 1,654,920 | 1,572,572 | ||||||||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 14,114,626 | $ | 13,976,610 | $ | 13,714,201 | |||||||||||||||||||||||||||||
| Net interest income | $ | 95,788 | $ | 96,236 | $ | 114,060 | |||||||||||||||||||||||||||||
| Net interest rate spread | 2.33 | % | 2.39 | % | 3.36 | % | |||||||||||||||||||||||||||||
| Net interest-earning assets | $ | 2,802,815 | $ | 2,909,874 | $ | 3,242,506 | |||||||||||||||||||||||||||||
| Net interest margin(3) | 2.92 | % | 2.96 | % | 3.62 | % | |||||||||||||||||||||||||||||
| Ratio of interest-earning assets to total interest-bearing liabilities | 1.28x | 1.30x | 1.35x | ||||||||||||||||||||||||||||||||
| (1 | ) | Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses. |
| (2 | ) | Average outstanding balances are net of the allowance for loan losses, deferred loan fees and expenses, loan premiums and discounts and include non-accrual loans. |
| (3 | ) | Annualized net interest income divided by average interest-earning assets. |
| The following table summarizes the quarterly net interest margin for the previous five quarters. | |||||||||||||||||||
| 12/31/23 | 9/30/23 | 6/30/23 | 3/31/23 | 12/31/22 | |||||||||||||||
| 4th Qtr. | 3rd Qtr. | 2nd Qtr. | 1st Qtr. | 4th Qtr. | |||||||||||||||
| Interest-Earning Assets: | |||||||||||||||||||
| Securities | 2.79 | % | 2.67 | % | 2.53 | % | 2.52 | % | 2.32 | % | |||||||||
| Net loans | 5.50 | % | 5.37 | % | 5.24 | % | 5.12 | % | 4.82 | % | |||||||||
| Total interest-earning assets | 5.04 | % | 4.89 | % | 4.73 | % | 4.63 | % | 4.36 | % | |||||||||
| Interest-Bearing Liabilities: | |||||||||||||||||||
| Total deposits | 2.47 | % | 2.22 | % | 1.85 | % | 1.39 | % | 0.90 | % | |||||||||
| Total borrowings | 3.71 | % | 3.74 | % | 3.41 | % | 2.48 | % | 1.74 | % | |||||||||
| Total interest-bearing liabilities | 2.71 | % | 2.50 | % | 2.13 | % | 1.54 | % | 1.00 | % | |||||||||
| Interest rate spread | 2.33 | % | 2.39 | % | 2.60 | % | 3.09 | % | 3.36 | % | |||||||||
| Net interest margin | 2.92 | % | 2.96 | % | 3.11 | % | 3.48 | % | 3.62 | % | |||||||||
| Ratio of interest-earning assets to interest-bearing liabilities | 1.28x | 1.30x | 1.31x | 1.34x | 1.35x | ||||||||||||||
| PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY | |||||||||||||||||||||||
| Net Interest Margin Analysis | |||||||||||||||||||||||
| Average Year to Date Balances | |||||||||||||||||||||||
| (Dollars in Thousands) (Unaudited) | |||||||||||||||||||||||
| December 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
| Average | Average | Average | Average | ||||||||||||||||||||
| Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost | ||||||||||||||||||
| Interest-Earning Assets: | |||||||||||||||||||||||
| Deposits | $ | 65,991 | $ | 3,421 | 5.18 | % | $ | 102,505 | $ | 809 | 0.79 | % | |||||||||||
| Federal funds sold and other short-term investments | 255 | 12 | 4.55 | % | 84,969 | 1,208 | 1.42 | % | |||||||||||||||
| Available for sale debt securities | 1,745,105 | 40,678 | 2.33 | % | 1,975,641 | 34,612 | 1.75 | % | |||||||||||||||
| Held to maturity debt securities, net(1) | 375,436 | 9,362 | 2.49 | % | 407,236 | 9,894 | 2.43 | % | |||||||||||||||
| Equity securities, at fair value | 1,020 | — | — | % | 999 | — | — | % | |||||||||||||||
| Federal Home Loan Bank stock | 81,797 | 6,112 | 7.47 | % | 42,658 | 2,008 | 4.71 | % | |||||||||||||||
| Net loans:(2) | |||||||||||||||||||||||
| Total mortgage loans | 7,813,764 | 408,942 | 5.23 | % | 7,348,482 | 304,321 | 4.14 | % | |||||||||||||||
| Total commercial loans | 2,251,175 | 128,854 | 5.72 | % | 2,131,685 | 98,961 | 4.64 | % | |||||||||||||||
| Total consumer loans | 302,681 | 18,439 | 6.09 | % | 318,655 | 14,368 | 4.51 | % | |||||||||||||||
| Total net loans | 10,367,620 | 556,235 | 5.37 | % | 9,798,822 | 417,650 | 4.26 | % | |||||||||||||||
| Total interest-earning assets | $ | 12,637,224 | $ | 615,820 | 4.87 | % | $ | 12,412,830 | $ | 466,181 | 3.76 | % | |||||||||||
| Non-Interest Earning Assets: | |||||||||||||||||||||||
| Cash and due from banks | 119,232 | 128,523 | |||||||||||||||||||||
| Other assets | 1,159,011 | 1,101,496 | |||||||||||||||||||||
| Total assets | $ | 13,915,467 | $ | 13,642,849 | |||||||||||||||||||
| Interest-Bearing Liabilities: | |||||||||||||||||||||||
| Demand deposits | $ | 5,747,671 | $ | 125,471 | 2.18 | % | $ | 6,076,653 | $ | 32,047 | 0.53 | % | |||||||||||
| Savings deposits | 1,282,062 | 2,184 | 0.17 | % | 1,492,046 | 1,276 | 0.09 | % | |||||||||||||||
| Time deposits | 994,901 | 31,804 | 3.20 | % | 690,140 | 5,381 | 0.78 | % | |||||||||||||||
| Total deposits | 8,024,634 | 159,459 | 1.99 | % | 8,258,839 | 38,704 | 0.47 | % | |||||||||||||||
| Borrowed funds | 1,636,572 | 55,856 | 3.41 | % | 756,275 | 9,310 | 1.23 | % | |||||||||||||||
| Subordinated debentures | 10,588 | 1,051 | 9.92 | % | 10,381 | 615 | 5.92 | % | |||||||||||||||
| Total interest-bearing liabilities | $ | 9,671,794 | $ | 216,366 | 2.24 | % | $ | 9,025,495 | $ | 48,629 | 0.54 | % | |||||||||||
| Non-Interest Bearing Liabilities: | |||||||||||||||||||||||
| Non-interest bearing deposits | 2,328,557 | 2,749,562 | |||||||||||||||||||||
| Other non-interest bearing liabilities | 270,587 | 249,702 | |||||||||||||||||||||
| Total non-interest bearing liabilities | 2,599,144 | 2,999,264 | |||||||||||||||||||||
| Total liabilities | 12,270,938 | 12,024,759 | |||||||||||||||||||||
| Stockholders' equity | 1,644,529 | 1,618,090 | |||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 13,915,467 | $ | 13,642,849 | |||||||||||||||||||
| Net interest income | $ | 399,454 | $ | 417,552 | |||||||||||||||||||
| Net interest rate spread | 2.63 | % | 3.22 | % | |||||||||||||||||||
| Net interest-earning assets | $ | 2,965,430 | $ | 3,387,335 | |||||||||||||||||||
| Net interest margin(3) | 3.16 | % | 3.37 | % | |||||||||||||||||||
| Ratio of interest-earning assets to total interest-bearing liabilities | 1.31x | 1.38x | |||||||||||||||||||||
| (1) Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses. | |||||||||||||||||||||||
| (2) Average outstanding balance are net of the allowance for loan losses, deferred loan fees and expenses, loan premium and discounts and include non-accrual loans. | |||||||||||||||||||||||
| (3) Annualized net interest income divided by average interest-earning assets. | |||||||||||||||||||||||
| The following table summarizes the year-to-date net interest margin for the previous three years. | |||||||||||
| Year Ended | |||||||||||
| December 31, 2023 | December 31, 2022 | December 31, 2021 | |||||||||
| Interest-Earning Assets: | |||||||||||
| Securities | 2.62 | % | 1.86 | % | 1.42 | % | |||||
| Net loans | 5.37 | % | 4.26 | % | 3.82 | % | |||||
| Total interest-earning assets | 4.87 | % | 3.76 | % | 3.30 | % | |||||
| Interest-Bearing Liabilities: | |||||||||||
| Total deposits | 1.99 | % | 0.47 | % | 0.33 | % | |||||
| Total borrowings | 3.41 | % | 1.23 | % | 1.09 | % | |||||
| Total interest-bearing liabilities | 2.24 | % | 0.54 | % | 0.41 | % | |||||
| Interest rate spread | 2.63 | % | 3.22 | % | 2.89 | % | |||||
| Net interest margin | 3.16 | % | 3.37 | % | 3.00 | % | |||||
| Ratio of interest-earning assets to interest-bearing liabilities | 1.31x | 1.38x | 1.37x | ||||||||
SOURCE: Provident Financial Services, Inc.
CONTACT: Investor Relations, 1-732-590-9300
Web Site: http://www.Provident.Bank
FAQ
What is the net income reported by Provident Financial Services, Inc. for the three months ended December 31, 2023?
What was the percentage increase in the company's total loan portfolio at December 31, 2023?
What was the net interest margin for the quarter ended December 31, 2023?
What was the average yield on total loans for the quarter ended December 31, 2023?
What was the net income for the year ended December 31, 2023, compared to the year ended December 31, 2022?
What were the transaction costs related to the pending merger with Lakeland Bancorp, Inc.?
