Provident Financial Services, Inc. Announces Fourth Quarter and Full Year Earnings, Declaration of Quarterly Cash Dividend and Annual Meeting Date
Provident Financial Services (NYSE:PFS) reported Q4 2024 net income of $48.5 million ($0.37 per share), up from $46.4 million ($0.36 per share) in Q3 2024. Full-year 2024 net income was $115.5 million ($1.05 per share), compared to $128.4 million ($1.72 per share) in 2023.
The company's performance was significantly impacted by its May 2024 merger with Lakeland Bancorp, which added $10.91 billion in total assets, $7.91 billion in loans, and $8.62 billion in deposits. Merger-related transaction costs totaled $20.2 million in Q4 and $56.9 million for the full year 2024.
Key Q4 metrics include a net interest margin decrease to 3.28%, total deposits increase of $247.6 million to $18.62 billion, and improved asset quality with non-performing loans decreasing to 0.39%. The Board declared a quarterly cash dividend of $0.24 per share, payable February 28, 2025.
Provident Financial Services (NYSE:PFS) ha riportato un reddito netto per il quarto trimestre del 2024 di 48,5 milioni di dollari (0,37 dollari per azione), in aumento rispetto ai 46,4 milioni di dollari (0,36 dollari per azione) del terzo trimestre del 2024. Il reddito netto per l'intero anno 2024 è stato di 115,5 milioni di dollari (1,05 dollari per azione), rispetto ai 128,4 milioni di dollari (1,72 dollari per azione) del 2023.
Le prestazioni dell'azienda sono state significativamente influenzate dalla fusione con Lakeland Bancorp avvenuta a maggio 2024, che ha aggiunto 10,91 miliardi di dollari in attivi totali, 7,91 miliardi in prestiti e 8,62 miliardi in depositi. I costi delle transazioni legati alla fusione hanno totalizzato 20,2 milioni di dollari nel quarto trimestre e 56,9 milioni di dollari per l'intero anno 2024.
I principali indicatori del quarto trimestre includono una diminuzione del margine di interesse netto al 3,28%, un aumento totale dei depositi di 247,6 milioni di dollari a 18,62 miliardi, e un miglioramento della qualità degli attivi con un calo dei prestiti non performanti allo 0,39%. Il Consiglio ha dichiarato un dividendo in contante trimestrale di 0,24 dollari per azione, pagabile il 28 febbraio 2025.
Provident Financial Services (NYSE:PFS) reportó un ingreso neto del cuarto trimestre de 2024 de 48,5 millones de dólares (0,37 dólares por acción), un aumento en comparación con los 46,4 millones de dólares (0,36 dólares por acción) en el tercer trimestre de 2024. El ingreso neto para todo el año 2024 fue de 115,5 millones de dólares (1,05 dólares por acción), en comparación con 128,4 millones de dólares (1,72 dólares por acción) en 2023.
El desempeño de la empresa se vio significativamente afectado por su fusión en mayo de 2024 con Lakeland Bancorp, que agregó 10,91 mil millones de dólares en activos totales, 7,91 mil millones de dólares en préstamos y 8,62 mil millones de dólares en depósitos. Los costos de transacción relacionados con la fusión totalizaron 20,2 millones de dólares en el cuarto trimestre y 56,9 millones de dólares para todo el año 2024.
Los indicadores clave del cuarto trimestre incluyen una disminución del margen de interés neto al 3,28%, un aumento total de los depósitos de 247,6 millones de dólares a 18,62 mil millones de dólares, y una mejora en la calidad de los activos con una reducción de los préstamos no rentables al 0,39%. La Junta declaró un dividendo en efectivo trimestral de 0,24 dólares por acción, pagadero el 28 de febrero de 2025.
Provident Financial Services (NYSE:PFS)는 2024년 4분기에 4,850만 달러(주당 0.37달러)의 순이익을 보고했으며, 이는 2024년 3분기 4,640만 달러(주당 0.36달러)에서 증가한 수치입니다. 2024년 전체 순이익은 1억 1,550만 달러(주당 1.05달러)로, 2023년의 1억 2,840만 달러(주당 1.72달러)와 비교됩니다.
회사의 성과는 2024년 5월에 Lakeland Bancorp와의 합병으로 상당한 영향을 받았으며, 이는 총 자산 1,091억 달러, 대출 791억 달러, 예금 862억 달러를 추가했습니다. 합병 관련 거래 비용은 4분기에 2020만 달러, 2024년 전체로는 5,690만 달러에 달했습니다.
4분기의 주요 지표로는 순이자 마진이 3.28%로 감소하고, 총 예금이 2억 4,760만 달러 증가해 1,862억 달러에 달하며, 부실 대출이 0.39%로 감소하여 자산 품질이 개선된 것입니다. 이사회는 주당 0.24달러의 분기별 현금 배당금을 선언했으며, 2025년 2월 28일에 지급될 예정입니다.
Provident Financial Services (NYSE:PFS) a rapporté un revenu net de 48,5 millions de dollars (0,37 dollar par action) pour le quatrième trimestre de 2024, en hausse par rapport à 46,4 millions de dollars (0,36 dollar par action) au troisième trimestre de 2024. Le revenu net pour l'année entière 2024 s'est élevé à 115,5 millions de dollars (1,05 dollar par action), contre 128,4 millions de dollars (1,72 dollar par action) en 2023.
Les performances de l'entreprise ont été significativement impactées par sa fusion en mai 2024 avec Lakeland Bancorp, qui a ajouté 10,91 milliards de dollars d'actifs totaux, 7,91 milliards de dollars de prêts et 8,62 milliards de dollars de dépôts. Les coûts de transaction liés à la fusion ont totalisé 20,2 millions de dollars au quatrième trimestre et 56,9 millions de dollars pour l'année entière 2024.
Les indicateurs clés du quatrième trimestre comprennent une diminution de la marge d'intérêt net à 3,28%, une augmentation des dépôts totaux de 247,6 millions de dollars à 18,62 milliards de dollars, et une amélioration de la qualité des actifs avec une baisse des prêts non performants à 0,39%. Le Conseil a déclaré un dividende en espèces trimestriel de 0,24 dollar par action, payable le 28 février 2025.
Provident Financial Services (NYSE:PFS) hat im vierten Quartal 2024 einen Nettogewinn von 48,5 Millionen Dollar (0,37 Dollar pro Aktie) gemeldet, ein Anstieg von 46,4 Millionen Dollar (0,36 Dollar pro Aktie) im dritten Quartal 2024. Der Nettogewinn für das gesamte Jahr 2024 betrug 115,5 Millionen Dollar (1,05 Dollar pro Aktie), verglichen mit 128,4 Millionen Dollar (1,72 Dollar pro Aktie) im Jahr 2023.
Die Leistung des Unternehmens wurde erheblich durch die Fusion mit Lakeland Bancorp im Mai 2024 beeinflusst, die 10,91 Milliarden Dollar an Gesamtvermögen, 7,91 Milliarden Dollar an Darlehen und 8,62 Milliarden Dollar an Einlagen hinzufügte. Die fusionsbedingten Transaktionskosten beliefen sich im vierten Quartal auf 20,2 Millionen Dollar und für das gesamte Jahr 2024 auf 56,9 Millionen Dollar.
Wichtige Kennzahlen im vierten Quartal umfassen einen Rückgang der Nettozinsspanne auf 3,28%, einen Anstieg der Gesamteinlagen um 247,6 Millionen Dollar auf 18,62 Milliarden Dollar und eine Verbesserung der Vermögensqualität mit einem Rückgang der notleidenden Kredite auf 0,39%. Der Vorstand hat eine vierteljährliche Bar-Dividende von 0,24 Dollar pro Aktie erklärt, zahlbar am 28. Februar 2025.
- Net income increased to $48.5M in Q4 2024 from $46.4M in Q3 2024
- Total deposits grew by $247.6M to $18.62B in Q4
- Asset quality improved with non-performing loans decreasing to 0.39% from 0.47%
- Wealth management and insurance agency income increased 12% and 19% respectively YoY
- Full-year net income declined to $115.5M from $128.4M in 2023
- Net interest margin decreased 3 basis points to 3.28% in Q4
- Merger-related costs totaled $56.9M for 2024
- Average yield on total loans decreased 22 basis points to 5.99% in Q4
Insights
The Q4 2024 results reveal a complex financial picture dominated by the transformative $10.91 billion Lakeland merger. While headline earnings show improvement, with Q4 net income reaching
The merger's integration costs significantly impacted profitability, with transaction costs of
Particularly noteworthy is the bank's strategic decision to exit non-relationship equipment lease financing, reclassifying
The net interest margin of
ISELIN, N.J., Jan. 28, 2025 (GLOBE NEWSWIRE) -- Provident Financial Services, Inc. (NYSE:PFS) (the “Company”) reported net income of
The Company’s earnings for the three months and year ended December 31, 2024 reflect the impact of the May 16, 2024 merger with Lakeland Bancorp, Inc. (“Lakeland”), which added
Anthony J. Labozzetta, President and Chief Executive Officer commented, “Provident had an eventful 2024 marked by solid financial performance and defined by the completion of our merger with Lakeland. We have maintained excellent asset quality, grown our deposits, and benefited from our expanding fee-based businesses. With core systems conversion and integration now completed, we look forward to further improving our performance across all business lines in 2025."
Performance Highlights for the Fourth Quarter of 2024
- Adjusted for transaction costs related to the merger with Lakeland, net of tax, the Company's annualized adjusted returns on average assets, average equity and average tangible equity(1) were
1.05% ,9.53% and15.39% for the quarter ended December 31, 2024, compared to0.95% ,8.62% and14.53% for the quarter ended September 30, 2024. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 13 of the earnings release. - The Company's annualized adjusted pre-tax, pre-provision returns on average assets, average equity and average tangible equity(2) were
1.53% ,13.91% and20.31% for the quarter ended December 31, 2024, compared to1.48% ,13.48% and19.77% for the quarter ended September 30, 2024. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 13 of the earnings release. - Net interest margin decreased three basis points to
3.28% for the quarter ended December 31, 2024, from3.31% for the trailing quarter, mainly due to a reduction in net accretion of purchase accounting adjustments related to the Lakeland merger. However, the core net interest margin, which excludes the impact of purchase accounting accretion and amortization, increased four basis points from the trailing quarter to2.85% . The average yield on total loans decreased 22 basis points to5.99% for the quarter ended December 31, 2024, compared to the trailing quarter, while the average cost of deposits, including non-interest-bearing deposits, decreased 11 basis points to2.25% for the quarter ended December 31, 2024. - Wealth management and insurance agency income increased
12% and19% , respectively, versus the same period in 2023. - Asset quality improved in the quarter, as non-performing loans to total loans as of December 31, 2024 decreased to
0.39% from0.47% as of September 30, 2024, while non-performing assets to total assets as of December 31, 2024 decreased to0.34% from0.41% as of September 30, 2024. - The Company recorded a
$7.8 million provision for credit losses on loans for the quarter ended December 31, 2024, compared to a$9.6 million provision for the trailing quarter. The decrease in the provision for credit losses on loans for the quarter was primarily attributable to the reclassification of$151.3 million to the held for sale portfolio, partially offset by modest deterioration in the economic forecast within our CECL model. - Total deposits increased
$247.6 million to$18.62 billion as of December 31, 2024 compared to September 30, 2024. - In December of 2024,
$151.3 million of the Bank's commercial loan portfolio was reclassified from loans held for investment into the held for sale portfolio as a result of a decision to exit the non-relationship equipment lease financing business. - As of December 31, 2024, the Company's loan pipeline, consisting of work-in-process and loans approved pending closing, totaled
$1.79 billion , with a weighted average interest rate of6.91% . - At December 31, 2024, CRE loans related to office properties totaled
$884.1 million , compared to$921.1 million at September 30, 2024. CRE loans secured by office properties constitutes4.6% of total loans and have an average loan size of$1.9 million , with seven relationships greater than$10.0 million . There were four loans totaling$9.1 million on non-accrual as of December 31, 2024. - As of December 31, 2024, multi-family CRE loans secured by New York City properties totaled
$244.5 million , compared to$226.6 million as of September 30, 2024. This portfolio constitutes only1.3% of total loans and has an average loan size of$2.8 million . Loans that are collateralized by rent stabilized apartments comprise less than0.80% of the total loan portfolio and are all performing.
Declaration of Quarterly Dividend
The Company’s Board of Directors declared a quarterly cash dividend of
Annual Meeting Date Set
The Annual Meeting of Stockholders will be held on April 24, 2025 at 10:00 a.m. Eastern Time as a virtual meeting. February 28, 2025 has been established as the record date for the determination of stockholders entitled to vote at the Annual Meeting.
Results of Operations
Three months ended December 31, 2024 compared to the three months ended September 30, 2024
For the three months ended December 31, 2024, net income was
Net Interest Income and Net Interest Margin
Net interest income decreased
The Company’s net interest margin decreased three basis points to
Provision for Credit Losses on Loans
For the quarter ended December 31, 2024, the Company recorded a
Non-Interest Income and Expense
For the three months ended December 31, 2024, non-interest income totaled
Non-interest expense totaled
The Company’s annualized adjusted non-interest expense as a percentage of average assets(4) was
Income Tax Expense
For the three months ended December 31, 2024, the Company's income tax expense was
Three months ended December 31, 2024 compared to the three months ended December 31, 2023
For the three months ended December 31, 2024, net income was
Net Interest Income and Net Interest Margin
Net interest income increased
The Company’s net interest margin increased 36 basis points to
Provision for Credit Losses on Loans
For the quarter ended December 31, 2024, 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(4) was
Income Tax Expense
For the three months ended December 31, 2024, the Company's income tax expense was
Year ended December 31, 2024 compared to the year ended December 31, 2023
For the year ended December 31, 2024, net income totaled
Net Interest Income and Net Interest Margin
Net interest income increased
For the year ended December 31, 2024, the net interest margin increased 10 basis points to
Provision for Credit Losses on Loans
For the year ended December 31, 2024, the Company recorded an
Non-Interest Income and Expense
For the year ended December 31, 2024, non-interest income totaled
Non-interest expense totaled
Income Tax Expense
For the year ended December 31, 2024, the Company's income tax expense was
Asset Quality
The Company’s total non-performing loans at December 31, 2024 were
At December 31, 2024, 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, 2024 | September 30, 2024 | December 31, 2023 | |||||||||||||||||
| 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 | 7 | $ | 8,538 | 2 | $ | 430 | 1 | $ | 825 | ||||||||||
| Multi-family mortgage loans | — | — | — | — | 1 | 3,815 | |||||||||||||
| Construction loans | — | — | — | — | — | — | |||||||||||||
| Residential mortgage loans | 22 | 6,388 | 23 | 5,020 | 13 | 3,429 | |||||||||||||
| Total mortgage loans | 29 | 14,926 | 25 | 5,450 | 15 | 8,069 | |||||||||||||
| Commercial loans | 23 | 4,248 | 14 | 1,952 | 6 | 998 | |||||||||||||
| Consumer loans | 47 | 3,152 | 53 | 4,073 | 31 | 875 | |||||||||||||
| Total 30 to 59 days past due | 99 | $ | 22,326 | 92 | $ | 11,475 | 52 | $ | 9,942 | ||||||||||
| 60 to 89 days past due: | |||||||||||||||||||
| Commercial mortgage loans | 4 | $ | 3,954 | 1 | $ | 641 | — | $ | — | ||||||||||
| Multi-family mortgage loans | — | — | — | — | 1 | 1,635 | |||||||||||||
| Construction loans | — | — | — | — | — | — | |||||||||||||
| Residential mortgage loans | 17 | 5,049 | 11 | 1,991 | 8 | 1,208 | |||||||||||||
| Total mortgage loans | 21 | 9,003 | 12 | 2,632 | 9 | 2,843 | |||||||||||||
| Commercial loans | 9 | 2,377 | 9 | 1,240 | 3 | 198 | |||||||||||||
| Consumer loans | 15 | 856 | 10 | 606 | 5 | 275 | |||||||||||||
| Total 60 to 89 days past due | 45 | 12,236 | 31 | 4,478 | 17 | 3,316 | |||||||||||||
| Total accruing past due loans | 144 | $ | 34,562 | 123 | $ | 15,953 | 69 | $ | 13,258 | ||||||||||
| Non-accrual: | |||||||||||||||||||
| Commercial mortgage loans | 17 | $ | 20,883 | 17 | $ | 13,969 | 7 | $ | 5,151 | ||||||||||
| Multi-family mortgage loans | 6 | 7,498 | 6 | 7,578 | 1 | 744 | |||||||||||||
| Construction loans | 2 | 13,246 | 2 | 13,151 | 1 | 771 | |||||||||||||
| Residential mortgage loans | 23 | 4,535 | 24 | 5,211 | 7 | 853 | |||||||||||||
| Total mortgage loans | 48 | 46,162 | 49 | 39,909 | 16 | 7,519 | |||||||||||||
| Commercial loans | 65 | 24,243 | 69 | 48,592 | 26 | 41,487 | |||||||||||||
| Consumer loans | 23 | 1,656 | 32 | 1,433 | 10 | 633 | |||||||||||||
| Total non-accrual loans | 136 | $ | 72,061 | 150 | $ | 89,934 | 52 | $ | 49,639 | ||||||||||
| Non-performing loans to total loans | 0.39 | % | 0.47 | % | 0.46 | % | |||||||||||||
| Allowance for loan losses to total non-performing loans | 268.43 | % | 217.09 | % | 215.96 | % | |||||||||||||
| Allowance for loan losses to total loans | 1.04 | % | 1.02 | % | 0.99 | % | |||||||||||||
At December 31, 2024 and December 31, 2023, the Company held foreclosed assets of
Balance Sheet Summary
Total assets at December 31, 2024 were
The Company’s loans held for investment portfolio totaled
| December 31, 2024 | September 30, 2024 | December 31, 2023 | |||||||||||
| (Dollars in thousands) | |||||||||||||
| Mortgage loans: | |||||||||||||
| Commercial | $ | 7,228,078 | $ | 7,342,456 | $ | 4,512,411 | |||||||
| Multi-family | 3,382,933 | 3,226,918 | 1,812,500 | ||||||||||
| Construction | 823,503 | 873,509 | 653,246 | ||||||||||
| Residential | 2,014,844 | 2,032,671 | 1,164,956 | ||||||||||
| Total mortgage loans | 13,449,358 | 13,475,554 | 8,143,113 | ||||||||||
| Commercial loans | 4,604,367 | 4,710,601 | 2,440,621 | ||||||||||
| Consumer loans | 613,819 | 623,709 | 299,164 | ||||||||||
| Total gross loans | 18,667,544 | 18,809,864 | 10,882,898 | ||||||||||
| Premiums on purchased loans | 1,338 | 1,362 | 1,474 | ||||||||||
| Net deferred fees and unearned discounts | (9,512 | ) | (16,617 | ) | (12,456 | ) | |||||||
| Total loans | $ | 18,659,370 | $ | 18,794,609 | $ | 10,871,916 | |||||||
As part of the merger with Lakeland, we acquired
For the year ended December 31, 2024, loan funding, including advances on lines of credit, totaled
At December 31, 2024, 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 increased
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 New Jersey, Bucks, Lehigh and Northampton counties in Pennsylvania, as well as Orange, Queens and Nassau Counties in New York. The Bank also provides fiduciary and wealth management services through its wholly owned subsidiary, Beacon Trust Company and insurance services through its wholly owned subsidiary, Provident Protection Plus, Inc.
Post Earnings Conference Call
Representatives of the Company will hold a conference call for investors on Wednesday, January 29, 2025 at 10:00 a.m. Eastern Time to discuss the Company’s financial results for the quarter and year ended December 31, 2024. The call may be accessed by dialing 1-888-412-4131 (United States Toll Free) and 1-646-960-0134 (United States Local). Speakers will need to enter conference ID code (3610756) before being met by a live operator. Internet access to the call is also available (listen only) at provident.bank by going to Investor Relations and clicking on "Webcast."
Forward Looking Statements
Certain statements contained herein are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” "project," "intend," “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those set forth in Item 1A of the Company's Annual Report on Form 10-K, as supplemented by its Quarterly Reports on Form 10-Q, and those related to the economic environment, particularly in the market areas in which the Company operates, inflation and unemployment, competitive products and pricing, real estate values, fiscal and monetary policies of the U.S. Government, the effects of the recent turmoil in the banking industry, changes in accounting policies and practices that may be adopted by the regulatory agencies and the accounting standards setters, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, potential goodwill impairment, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets, the availability of and costs associated with sources of liquidity, the ability to complete, or any delays in completing, the pending merger between the Company and Lakeland; any failure to realize the anticipated benefits of the transaction when expected or at all; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected conditions, factors or events; potential adverse reactions or changes to business, employee, customer and/or counterparty relationships, including those resulting from the completion of the merger and integration of the companies; and the impact of a potential shutdown of the federal government.
The Company cautions readers not to place undue reliance on any such forward-looking statements which speak only as of the date they are made. The Company advises readers that the factors listed above could affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not assume any duty, and does not undertake, to update any forward-looking statements to reflect events or circumstances after the date of this statement.
Footnotes
(1) Annualized adjusted pre-tax, pre-provision return on average assets, annualized return on average tangible equity, tangible book value per share, annualized adjusted non-interest expense as a percentage of average assets and the efficiency ratio are non-GAAP financial measures. Please refer to the Notes following the Consolidated Financial Highlights which contain the reconciliation of GAAP to non-GAAP financial measures and the associated calculations.
| PROVIDENT FINANCIAL SERVICES, INC. AND 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, | |||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Statement of Income | |||||||||||||||||||
| Net interest income | $ | 181,737 | $ | 183,701 | $ | 95,788 | $ | 600,614 | $ | 399,454 | |||||||||
| Provision for credit losses | 8,880 | 9,299 | (863 | ) | 87,564 | 28,168 | |||||||||||||
| Non-interest income | 24,175 | 26,855 | 18,968 | 94,113 | 79,829 | ||||||||||||||
| Non-interest expense | 134,323 | 136,002 | 75,851 | 457,548 | 275,336 | ||||||||||||||
| Income before income tax expense | 62,709 | 65,255 | 39,768 | 149,615 | 175,779 | ||||||||||||||
| Net income | 48,524 | 46,405 | 27,312 | 115,525 | 128,398 | ||||||||||||||
| Diluted earnings per share | $ | 0.37 | $ | 0.36 | $ | 0.36 | $ | 1.05 | $ | 1.71 | |||||||||
| Interest rate spread | 2.63 | % | 2.65 | % | 2.33 | % | 2.63 | % | 2.63 | % | |||||||||
| Net interest margin | 3.28 | % | 3.31 | % | 2.92 | % | 3.26 | % | 3.16 | % | |||||||||
| Profitability | |||||||||||||||||||
| Annualized return on average assets | 0.81 | % | 0.76 | % | 0.77 | % | 0.57 | % | 0.92 | % | |||||||||
| Annualized adjusted return on average assets (1) | 1.05 | % | 0.95 | % | 0.83 | % | 0.78 | % | 0.97 | % | |||||||||
| Annualized return on average equity | 7.36 | % | 6.94 | % | 6.60 | % | 5.07 | % | 7.81 | % | |||||||||
| Annualized adjusted return on average equity (1) | 9.53 | % | 8.62 | % | 7.10 | % | 6.95 | % | 8.22 | % | |||||||||
| Annualized return on average tangible equity (3) | 12.21 | % | 12.06 | % | 9.32 | % | 8.58 | % | 11.01 | % | |||||||||
| Annualized adjusted return on average tangible equity (1) | 15.39 | % | 14.53 | % | 9.99 | % | 11.29 | % | 11.54 | % | |||||||||
| Annualized adjusted non-interest expense to average assets (4) | 1.90 | % | 1.98 | % | 1.98 | % | 1.97 | % | 1.90 | % | |||||||||
| Efficiency ratio (4) | 55.43 | % | 57.20 | % | 61.32 | % | 57.67 | % | 55.19 | % | |||||||||
| Asset Quality | |||||||||||||||||||
| Non-accrual loans | $ | 89,934 | $ | 72,061 | $ | 49,639 | |||||||||||||
| 90+ and still accruing | — | — | — | ||||||||||||||||
| Non-performing loans | 88,061 | 72,061 | 49,639 | ||||||||||||||||
| Foreclosed assets | 9,801 | 9,473 | 11,651 | ||||||||||||||||
| Non-performing assets | 97,862 | 81,534 | 61,290 | ||||||||||||||||
| Non-performing loans to total loans | 0.47 | % | 0.39 | % | 0.46 | % | |||||||||||||
| Non-performing assets to total assets | 0.41 | % | 0.34 | % | 0.43 | % | |||||||||||||
| Allowance for loan losses | $ | 191,175 | $ | 193,432 | $ | 107,200 | |||||||||||||
| Allowance for loan losses to total non-performing loans | 217.09 | % | 268.43 | % | 215.96 | % | |||||||||||||
| Allowance for loan losses to total loans | 1.02 | % | 1.04 | % | 0.99 | % | |||||||||||||
| Net loan charge-offs | $ | 5,493 | 6,756 | $ | 4,010 | $ | 14,560 | $ | 8,129 | ||||||||||
| Annualized net loan charge offs to average total loans | 0.12 | % | 0.14 | % | 0.16 | % | 0.09 | % | 0.08 | % | |||||||||
| Average Balance Sheet Data | |||||||||||||||||||
| Assets | $ | 23,908,514 | $ | 24,248,038 | $ | 14,114,626 | $ | 20,382,148 | $ | 13,915,467 | |||||||||
| Loans, net | 18,487,443 | 18,531,939 | 10,660,201 | 15,600,431 | 10,367,620 | ||||||||||||||
| Earning assets | 21,760,458 | 21,809,226 | 12,823,541 | 18,403,149 | 12,637,224 | ||||||||||||||
| Savings and demand deposits | 15,581,608 | 15,394,715 | 9,210,315 | 13,103,803 | 9,358,290 | ||||||||||||||
| Borrowings | 1,711,806 | 2,125,149 | 1,873,822 | 1,983,674 | 1,636,572 | ||||||||||||||
| Interest-bearing liabilities | 17,093,382 | 17,304,569 | 10,020,726 | 14,596,325 | 9,671,794 | ||||||||||||||
| Stockholders' equity | 2,624,019 | 2,660,470 | 1,642,854 | 2,279,525 | 1,644,529 | ||||||||||||||
| Average yield on interest-earning assets | 5.66 | % | 5.84 | % | 5.04 | % | 5.68 | % | 4.87 | % | |||||||||
| Average cost of interest-bearing liabilities | 3.03 | % | 3.19 | % | 2.71 | % | 3.05 | % | 2.24 | % | |||||||||
Notes and Reconciliation of GAAP and Non-GAAP Financial Measures
(Dollars in Thousands, except share data)
The Company has presented the following non-GAAP (U.S. Generally Accepted Accounting Principles) financial measures because it believes that these measures provide useful and comparative information to assess trends in the Company’s results of operations and financial condition. Presentation of these non-GAAP financial measures is consistent with how the Company evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Company’s industry. Investors should recognize that the Company’s presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and the Company strongly encourages a review of its condensed consolidated financial statements in their entirety.
| (1) Annualized Adjusted Return on Average Assets, Equity and Tangible Equity | ||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Net Income | $ | 48,524 | $ | 46,405 | $ | 27,312 | $ | 115,525 | $ | 128,398 | ||||||||||
| Merger-related transaction costs | 20,184 | 15,567 | 2,477 | 56,867 | 7,826 | |||||||||||||||
| Less: income tax expense | (5,819 | ) | (4,306 | ) | (465 | ) | (14,010 | ) | (1,480 | ) | ||||||||||
| Annualized adjusted net income | $ | 62,889 | $ | 57,666 | $ | 29,324 | $ | 158,382 | $ | 134,744 | ||||||||||
| Less: Amortization of Intangibles (net of tax) | $ | 6,649 | $ | 8,551 | $ | 504 | $ | 20,226 | $ | 2,064 | ||||||||||
| Annualized adjusted net income for annualized adjusted return on average tangible equity | $ | 69,538 | $ | 66,216 | $ | 29,828 | $ | 178,607 | $ | 136,808 | ||||||||||
| Annualized Adjusted Return on Average Assets | 1.05 | % | 0.95 | % | 0.83 | % | 0.78 | % | 0.97 | % | ||||||||||
| Annualized Adjusted Return on Average Equity | 9.53 | % | 8.62 | % | 7.10 | % | 6.95 | % | 8.22 | % | ||||||||||
| Annualized Adjusted Return on Average Tangible Equity | 15.39 | % | 14.53 | % | 9.99 | % | 11.29 | % | 11.54 | % | ||||||||||
| (2) Annualized adjusted pre-tax, pre-provision ("PTPP") returns on average assets, average equity and average tangible equity | ||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Net income | $ | 48,524 | $ | 46,405 | $ | 27,312 | $ | 115,525 | $ | 128,398 | ||||||||||
| Adjustments to net income: | ||||||||||||||||||||
| Provision charge (benefit) for credit losses | 8,880 | 9,299 | (863 | ) | 87,564 | 28,168 | ||||||||||||||
| Net loss on Lakeland bond sale | — | — | — | 2,839 | — | |||||||||||||||
| Merger-related transaction costs | 20,184 | 15,567 | 2,477 | 56,867 | 7,826 | |||||||||||||||
| Contingent litigation reserves | — | — | 3,000 | — | 3,000 | |||||||||||||||
| Income tax expense | 14,185 | 18,850 | 12,456 | 34,090 | 47,381 | |||||||||||||||
| Adjusted PTPP income | $ | 91,773 | $ | 90,121 | $ | 44,382 | $ | 296,885 | $ | 214,773 | ||||||||||
| Annualized Adjusted PTPP income | $ | 365,097 | $ | 358,525 | $ | 176,081 | $ | 296,885 | $ | 214,773 | ||||||||||
| Average assets | $ | 23,908,514 | $ | 24,248,038 | $ | 14,114,626 | $ | 20,382,148 | $ | 13,915,467 | ||||||||||
| Average equity | $ | 2,624,019 | $ | 2,660,470 | $ | 1,642,854 | $ | 2,279,525 | $ | 1,644,529 | ||||||||||
| Average tangible equity | $ | 1,797,994 | $ | 1,813,327 | $ | 1,184,444 | $ | 1,581,339 | $ | 1,185,026 | ||||||||||
| Annualized Adjusted PTPP return on average assets | 1.53 | % | 1.48 | % | 1.25 | % | 1.46 | % | 1.54 | % | ||||||||||
| Annualized PTPP return on average equity | 13.91 | % | 13.48 | % | 10.72 | % | 13.02 | % | 13.06 | % | ||||||||||
| Annualized PTPP return on average tangible equity | 20.31 | % | 19.77 | % | 14.87 | % | 18.77 | % | 18.12 | % | ||||||||||
| (3) Annualized Return on Average Tangible Equity | ||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Total average stockholders' equity | $ | 2,624,019 | $ | 2,660,470 | $ | 1,642,854 | $ | 2,279,525 | $ | 1,644,529 | ||||||||||
| Less: total average intangible assets | 826,025 | 847,143 | 458,410 | 698,186 | 459,503 | |||||||||||||||
| Total average tangible stockholders' equity | $ | 1,797,994 | $ | 1,813,327 | $ | 1,184,444 | $ | 1,581,339 | $ | 1,185,026 | ||||||||||
| Net income | $ | 48,524 | $ | 46,405 | $ | 27,312 | $ | 115,525 | $ | 128,398 | ||||||||||
| Less: Amortization of Intangibles, net of tax | 6,649 | 8,551 | 504 | 20,226 | 2,064 | |||||||||||||||
| Total net income (loss) | $ | 55,173 | $ | 54,956 | $ | 27,816 | $ | 135,751 | $ | 130,462 | ||||||||||
| Annualized return on average tangible equity (net income/total average tangible stockholders' equity) | 12.21 | % | 12.06 | % | 9.32 | % | 8.58 | % | 11.01 | % | ||||||||||
| (4) Annualized Adjusted Non-Interest Expense to Average Assets | ||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Reported non-interest expense | $ | 134,323 | $ | 136,002 | $ | 75,851 | $ | 457,548 | $ | 275,336 | ||||||||||
| Adjustments to non-interest expense: | ||||||||||||||||||||
| Merger-related transaction costs | 20,184 | 15,567 | 2,477 | 56,867 | 7,826 | |||||||||||||||
| Contingent litigation reserves | — | — | 3,000 | — | 3,000 | |||||||||||||||
| Adjusted non-interest expense | $ | 114,139 | $ | 120,435 | $ | 70,374 | $ | 400,681 | $ | 264,510 | ||||||||||
| Annualized adjusted non-interest expense | $ | 454,075 | $ | 479,122 | $ | 279,201 | $ | 400,681 | $ | 264,510 | ||||||||||
| Average assets | $ | 23,908,514 | $ | 24,248,038 | $ | 14,114,626 | $ | 20,382,148 | $ | 13,915,467 | ||||||||||
| Annualized adjusted non-interest expense/average assets | 1.90 | % | 1.98 | % | 1.98 | % | 1.97 | % | 1.90 | % | ||||||||||
| (5) Efficiency Ratio Calculation | ||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Net interest income | $ | 181,737 | $ | 183,701 | $ | 95,788 | $ | 600,614 | $ | 399,454 | ||||||||||
| Non-interest income | 24,175 | 26,855 | 18,968 | 94,113 | 79,829 | |||||||||||||||
| Adjustments to non-interest income: | ||||||||||||||||||||
| Net loss (gain) on securities transactions | 14 | (2 | ) | 7 | 2,986 | (30 | ) | |||||||||||||
| Adjusted non-interest income | 24,189 | 26,853 | 18,975 | 97,099 | 79,799 | |||||||||||||||
| Total income | $ | 205,912 | $ | 210,554 | $ | 114,756 | $ | 694,727 | $ | 479,283 | ||||||||||
| Adjusted non-interest expense | $ | 114,139 | $ | 120,435 | $ | 70,374 | $ | 400,681 | $ | 264,510 | ||||||||||
| Efficiency ratio (adjusted non-interest expense/income) | 55.43 | % | 57.20 | % | 61.32 | % | 57.67 | % | 55.19 | % | ||||||||||
| (6) Book and Tangible Book Value per Share | ||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||
| Total stockholders' equity | $ | 2,601,207 | $ | 1,690,596 | ||||||||||||||||
| Less: total intangible assets | 819,230 | 457,942 | ||||||||||||||||||
| Total tangible stockholders' equity | $ | 1,781,977 | $ | 1,232,654 | ||||||||||||||||
| Shares outstanding | 130,489,493 | 75,537,186 | ||||||||||||||||||
| Book value per share (total stockholders' equity/shares outstanding) | $ | 19.93 | $ | 22.38 | ||||||||||||||||
| Tangible book value per share (total tangible stockholders' equity/shares outstanding) | $ | 13.66 | $ | 16.32 | ||||||||||||||||
| PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY | |||||||
| Consolidated Statements of Financial Condition | |||||||
| December 31, 2024 (Unaudited) and December 31, 2023 | |||||||
| (Dollars in Thousands) | |||||||
| Assets | December 31, 2024 | December 31, 2023 | |||||
| Cash and due from banks | $ | 166,914 | $ | 180,241 | |||
| Short-term investments | 25 | 14 | |||||
| Total cash and cash equivalents | 166,939 | 180,255 | |||||
| Available for sale debt securities, at fair value | 2,768,915 | 1,690,112 | |||||
| Held to maturity debt securities, (net of | 327,623 | 363,080 | |||||
| Equity securities, at fair value | 19,762 | 1,270 | |||||
| Federal Home Loan Bank stock | 112,115 | 79,217 | |||||
| Loans held for sale | 162,453 | 1,785 | |||||
| Loans held for investment | 18,659,370 | 10,871,916 | |||||
| Less allowance for credit losses | 193,432 | 107,200 | |||||
| Net loans | 18,628,391 | 10,766,501 | |||||
| Foreclosed assets, net | 9,473 | 11,651 | |||||
| Banking premises and equipment, net | 119,622 | 70,998 | |||||
| Accrued interest receivable | 91,160 | 58,966 | |||||
| Intangible assets | 819,230 | 457,942 | |||||
| Bank-owned life insurance | 405,893 | 243,050 | |||||
| Other assets | 582,702 | 287,768 | |||||
| Total assets | $ | 24,051,825 | $ | 14,210,810 | |||
| Liabilities and Stockholders' Equity | |||||||
| Deposits: | |||||||
| Demand deposits | $ | 13,775,991 | $ | 8,020,889 | |||
| Savings deposits | 1,679,667 | 1,175,683 | |||||
| Certificates of deposit of | 789,342 | 218,549 | |||||
| Other time deposits | 2,378,813 | 877,393 | |||||
| Total deposits | 18,623,813 | 10,292,514 | |||||
| Mortgage escrow deposits | 42,247 | 36,838 | |||||
| Borrowed funds | 2,020,435 | 1,970,033 | |||||
| Subordinated debentures | 401,608 | 10,695 | |||||
| Other liabilities | 362,515 | 210,134 | |||||
| Total liabilities | 21,450,618 | 12,520,214 | |||||
| Stockholders' equity: | |||||||
| Preferred stock, | — | — | |||||
| Common stock, | 1,376 | 832 | |||||
| Additional paid-in capital | 1,834,495 | 989,058 | |||||
| Retained earnings | 989,111 | 974,542 | |||||
| Accumulated other comprehensive loss | (135,355 | ) | (141,115 | ) | |||
| Treasury stock | (88,420 | ) | (127,825 | ) | |||
| Unallocated common stock held by the Employee Stock Ownership Plan | — | (4,896 | ) | ||||
| Common Stock acquired by the Directors' Deferred Fee Plan | — | (2,694 | ) | ||||
| Deferred Compensation - Directors' Deferred Fee Plan | — | 2,694 | |||||
| Total stockholders' equity | 2,601,207 | 1,690,596 | |||||
| Total liabilities and stockholders' equity | $ | 24,051,825 | $ | 14,210,810 | |||
| PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY | ||||||||||||||||||
| Consolidated Statements of Income | ||||||||||||||||||
| Three months ended December 31, 2024, September 30, 2024 (Unaudited) and December 31, 2023, and year ended December 31, 2024 (Unaudited) and 2023 | ||||||||||||||||||
| (Dollars in Thousands, except per share data) | ||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| Interest and dividend income: | ||||||||||||||||||
| Real estate secured loans | $ | 194,236 | $ | 197,857 | $ | 109,112 | $ | 655,868 | $ | 408,942 | ||||||||
| Commercial loans | 75,978 | 81,183 | 34,939 | 251,793 | 128,854 | |||||||||||||
| Consumer loans | 10,815 | 12,947 | 5,020 | 36,635 | 18,439 | |||||||||||||
| Available for sale debt securities, equity securities and Federal Home Loan Bank stock | 27,197 | 25,974 | 12,042 | 85,895 | 46,790 | |||||||||||||
| Held to maturity debt securities | 2,125 | 2,136 | 2,303 | 8,885 | 9,362 | |||||||||||||
| Deposits, federal funds sold and other short-term investments | 1,596 | 2,425 | 755 | 7,062 | 3,433 | |||||||||||||
| Total interest income | 311,947 | 322,522 | 164,171 | 1,046,138 | 615,820 | |||||||||||||
| Interest expense: | ||||||||||||||||||
| Deposits | 105,922 | 110,009 | 50,579 | 349,523 | 159,459 | |||||||||||||
| Borrowed funds | 15,652 | 19,923 | 17,527 | 73,523 | 55,856 | |||||||||||||
| Subordinated debt | 8,636 | 8,889 | 277 | 22,478 | 1,051 | |||||||||||||
| Total interest expense | 130,210 | 138,821 | 68,383 | 445,524 | 216,366 | |||||||||||||
| Net interest income | 181,737 | 183,701 | 95,788 | 600,614 | 399,454 | |||||||||||||
| Provision charge (benefit) for credit losses | 8,880 | 9,299 | (863 | ) | 87,564 | 28,168 | ||||||||||||
| Net interest income after provision for credit losses | 172,857 | 174,402 | 96,651 | 513,050 | 371,286 | |||||||||||||
| Non-interest income: | ||||||||||||||||||
| Fees | 9,687 | 9,816 | 6,102 | 34,114 | 24,396 | |||||||||||||
| Wealth management income | 7,655 | 7,620 | 6,843 | 30,533 | 27,669 | |||||||||||||
| Insurance agency income | 3,289 | 3,631 | 2,759 | 16,201 | 13,934 | |||||||||||||
| Bank-owned life insurance | 2,261 | 4,308 | 1,644 | 11,709 | 6,482 | |||||||||||||
| Net (loss) gain on securities transactions | (14 | ) | 2 | (7 | ) | (2,986 | ) | 30 | ||||||||||
| Other income | 1,297 | 1,478 | 1,627 | 4,542 | 7,318 | |||||||||||||
| Total non-interest income | 24,175 | 26,855 | 18,968 | 94,113 | 79,829 | |||||||||||||
| Non-interest expense: | ||||||||||||||||||
| Compensation and employee benefits | 59,937 | 63,468 | 38,773 | 218,341 | 148,497 | |||||||||||||
| Net occupancy expense | 12,562 | 12,790 | 7,797 | 45,014 | 32,271 | |||||||||||||
| Data processing expense | 9,881 | 10,481 | 6,457 | 35,579 | 22,993 | |||||||||||||
| FDIC Insurance | 3,411 | 4,180 | 2,890 | 12,964 | 8,578 | |||||||||||||
| Amortization of intangibles | 9,511 | 12,231 | 721 | 28,931 | 2,952 | |||||||||||||
| Advertising and promotion expense | 1,485 | 1,524 | 1,100 | 5,146 | 4,822 | |||||||||||||
| Merger-related expenses | 20,184 | 15,567 | 2,477 | 56,867 | 7,826 | |||||||||||||
| Other operating expenses | 17,352 | 15,761 | 15,636 | 54,706 | 47,397 | |||||||||||||
| Total non-interest expense | 134,323 | 136,002 | 75,851 | 457,548 | 275,336 | |||||||||||||
| Income before income tax expense | 62,709 | 65,255 | 39,768 | 149,615 | 175,779 | |||||||||||||
| Income tax expense | 14,185 | 18,850 | 12,456 | 34,090 | 47,381 | |||||||||||||
| Net income | $ | 48,524 | $ | 46,405 | $ | 27,312 | $ | 115,525 | $ | 128,398 | ||||||||
| Basic earnings per share | $ | 0.37 | $ | 0.36 | $ | 0.36 | $ | 1.05 | $ | 1.72 | ||||||||
| Average basic shares outstanding | 130,067,244 | 129,941,845 | 74,995,705 | 109,668,911 | 74,844,489 | |||||||||||||
| Diluted earnings per share | $ | 0.37 | $ | 0.36 | $ | 0.36 | $ | 1.05 | $ | 1.71 | ||||||||
| Average diluted shares outstanding | 130,163,872 | 130,004,870 | 75,041,545 | 109,712,732 | 74,873,256 | |||||||||||||
| PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY | ||||||||||||||||||||||||||
| Net Interest Margin Analysis | ||||||||||||||||||||||||||
| Quarterly Average Balances | ||||||||||||||||||||||||||
| (Dollars in Thousands) (Unaudited) | ||||||||||||||||||||||||||
| December 31, 2024 | September 30, 2024 | December 31, 2023 | ||||||||||||||||||||||||
| Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | ||||||||||||||||||
| Interest-Earning Assets: | ||||||||||||||||||||||||||
| Deposits | $ | 117,998 | $ | 1,596 | 5.38 | % | $ | 179,313 | $ | 2,425 | 5.38 | % | $ | 54,998 | $ | 745 | 5.37 | % | ||||||||
| Federal funds sold and other short-term investments | — | — | — | % | — | — | — | % | 838 | 10 | 4.39 | % | ||||||||||||||
| Available for sale debt securities | 2,720,065 | 25,063 | 3.69 | % | 2,644,262 | 24,884 | 3.72 | % | 1,647,906 | 9,858 | 2.39 | % | ||||||||||||||
| Held to maturity debt securities, net (1) | 328,147 | 2,125 | 2.59 | % | 342,217 | 2,136 | 2.50 | % | 364,433 | 2,303 | 2.53 | % | ||||||||||||||
| Equity securities, at fair value | 19,920 | — | — | % | 19,654 | — | — | % | 1,016 | — | — | % | ||||||||||||||
| Federal Home Loan Bank stock | 86,885 | 2,134 | 9.82 | % | 91,841 | 1,090 | 4.75 | % | 94,149 | 2,184 | 9.28 | % | ||||||||||||||
| Net loans: (2) | ||||||||||||||||||||||||||
| Total mortgage loans | 13,287,942 | 194,236 | 5.75 | % | 13,363,265 | 197,857 | 5.83 | % | 8,028,300 | 109,112 | 5.34 | % | ||||||||||||||
| Total commercial loans | 4,587,048 | 75,978 | 6.54 | % | 4,546,088 | 81,183 | 7.05 | % | 2,329,430 | 34,939 | 5.90 | % | ||||||||||||||
| Total consumer loans | 612,453 | 10,815 | 7.02 | % | 622,586 | 12,947 | 8.27 | % | 302,471 | 5,020 | 6.58 | % | ||||||||||||||
| Total net loans | 18,487,443 | 281,029 | 5.99 | % | 18,531,939 | 291,987 | 6.21 | % | 10,660,201 | 149,071 | 5.50 | % | ||||||||||||||
| Total interest-earning assets | $ | 21,760,458 | $ | 311,947 | 5.66 | % | $ | 21,809,226 | $ | 322,522 | 5.84 | % | $ | 12,823,541 | $ | 164,171 | 5.04 | % | ||||||||
| Non-Interest Earning Assets: | ||||||||||||||||||||||||||
| Cash and due from banks | 159,151 | 341,505 | 111,610 | |||||||||||||||||||||||
| Other assets | 1,988,905 | 2,097,307 | 1,179,475 | |||||||||||||||||||||||
| Total assets | $ | 23,908,514 | $ | 24,248,038 | $ | 14,114,626 | ||||||||||||||||||||
| Interest-Bearing Liabilities: | ||||||||||||||||||||||||||
| Demand deposits | $ | 10,115,827 | $ | 71,265 | 2.80 | % | $ | 9,942,053 | $ | 74,864 | 3.00 | % | $ | 5,856,916 | $ | 39,648 | 2.69 | % | ||||||||
| Savings deposits | 1,677,725 | 968 | 0.23 | % | 1,711,502 | 1006 | 0.23 | % | 1,183,857 | 602 | 0.20 | % | ||||||||||||||
| Time deposits | 3,187,172 | 33,689 | 4.21 | % | 3,112,598 | 34,139 | 4.36 | % | 1,095,468 | 10,329 | 3.74 | % | ||||||||||||||
| Total Deposits | 14,980,724 | 105,922 | 2.81 | % | 14,766,153 | 110,009 | 2.96 | % | 8,136,241 | 50,579 | 2.47 | % | ||||||||||||||
| Borrowed funds | 1,711,806 | 15,652 | 3.64 | % | 2,125,149 | 19,923 | 3.73 | % | 1,873,822 | 17,527 | 3.71 | % | ||||||||||||||
| Subordinated debentures | 400,852 | 8,636 | 8.57 | % | 413,267 | 8,889 | 8.56 | % | 10,663 | 277 | 10.27 | % | ||||||||||||||
| Total interest-bearing liabilities | 17,093,382 | 130,210 | 3.03 | % | 17,304,569 | 138,821 | 3.19 | % | 10,020,726 | 68,383 | 2.71 | % | ||||||||||||||
| Non-Interest Bearing Liabilities: | ||||||||||||||||||||||||||
| Non-interest bearing deposits | 3,788,056 | 3,741,160 | 2,169,542 | |||||||||||||||||||||||
| Other non-interest bearing liabilities | 403,057 | 541,839 | 281,504 | |||||||||||||||||||||||
| Total non-interest bearing liabilities | 4,191,113 | 4,282,999 | 2,451,046 | |||||||||||||||||||||||
| Total liabilities | 21,284,495 | 21,587,568 | 12,471,772 | |||||||||||||||||||||||
| Stockholders' equity | 2,624,019 | 2,660,470 | 1,642,854 | |||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 23,908,514 | $ | 24,248,038 | $ | 14,114,626 | ||||||||||||||||||||
| Net interest income | $ | 181,737 | $ | 183,701 | $ | 95,788 | ||||||||||||||||||||
| Net interest rate spread | 2.63 | % | 2.65 | % | 2.33 | % | ||||||||||||||||||||
| Net interest-earning assets | $ | 4,667,076 | $ | 4,504,657 | $ | 2,802,815 | ||||||||||||||||||||
| Net interest margin (3) | 3.28 | % | 3.31 | % | 2.92 | % | ||||||||||||||||||||
| Ratio of interest-earning assets to total interest-bearing liabilities | 1.27x | 1.26x | 1.28x | |||||||||||||||||||||||
| (1 | ) | Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses. |
| (2 | ) | Average outstanding balances are net of the allowance for loan losses, deferred loan fees and expenses, loan premiums and discounts and include non-accrual loans. |
| (3 | ) | Annualized net interest income divided by average interest-earning assets. |
| The following table summarizes the quarterly net interest margin for the previous five quarters. | ||||||||||||||
| 12/31/24 | 9/30/24 | 6/30/24 | 3/31/24 | 12/31/23 | ||||||||||
| 4th Qtr. | 3rd Qtr. | 2nd Qtr. | 1st Qtr. | 4th Qtr. | ||||||||||
| Interest-Earning Assets: | ||||||||||||||
| Securities | 3.78 | % | 3.69 | % | 3.40 | % | 2.87 | % | 2.79 | % | ||||
| Net loans | 5.99 | % | 6.21 | % | 6.05 | % | 5.51 | % | 5.50 | % | ||||
| Total interest-earning assets | 5.66 | % | 5.84 | % | 5.67 | % | 5.06 | % | 5.04 | % | ||||
| Interest-Bearing Liabilities: | ||||||||||||||
| Total deposits | 2.81 | % | 2.96 | % | 2.84 | % | 2.60 | % | 2.47 | % | ||||
| Total borrowings | 3.64 | % | 3.73 | % | 3.83 | % | 3.60 | % | 3.71 | % | ||||
| Total interest-bearing liabilities | 3.03 | % | 3.19 | % | 3.09 | % | 2.80 | % | 2.71 | % | ||||
| Interest rate spread | 2.63 | % | 2.65 | % | 2.58 | % | 2.26 | % | 2.33 | % | ||||
| Net interest margin | 3.28 | % | 3.31 | % | 3.21 | % | 2.87 | % | 2.92 | % | ||||
| Ratio of interest-earning assets to interest-bearing liabilities | 1.27x | 1.26x | 1.25x | 1.28x | 1.28x | |||||||||
| PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY | |||||||||||||||||
| Net Interest Margin Analysis | |||||||||||||||||
| Average Year to Date Balances | |||||||||||||||||
| (Dollars in Thousands) (Unaudited) | |||||||||||||||||
| December 31, 2024 | December 31, 2023 | ||||||||||||||||
| Average | Average | Average | Average | ||||||||||||||
| Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost | ||||||||||||
| Interest-Earning Assets: | |||||||||||||||||
| Deposits | $ | 36,932 | $ | 7,062 | 5.23 | % | $ | 65,991 | $ | 3,421 | 5.18 | % | |||||
| Federal funds sold and other short-term investments | — | — | — | % | 255 | 12 | 4.55 | % | |||||||||
| Available for sale debt securities | 2,323,158 | 77,617 | 3.32 | % | 1,745,105 | 40,678 | 2.33 | % | |||||||||
| Held to maturity debt securities, net (1) | 344,903 | 8,885 | 2.58 | % | 375,436 | 9,362 | 2.49 | % | |||||||||
| Equity securities, at fair value | 12,367 | — | — | % | 1,020 | — | — | % | |||||||||
| Federal Home Loan Bank stock | 85,358 | 8,278 | 9.70 | % | 81,797 | 6,112 | 7.47 | % | |||||||||
| Net loans: (2) | |||||||||||||||||
| Total mortgage loans | 11,333,540 | 655,868 | 5.79 | % | 7,813,764 | 408,942 | 5.23 | % | |||||||||
| Total commercial loans | 3,768,388 | 251,793 | 6.68 | % | 2,251,175 | 128,854 | 5.72 | % | |||||||||
| Total consumer loans | 498,503 | 36,635 | 7.35 | % | 302,681 | 18,439 | 6.09 | % | |||||||||
| Total net loans | 15,600,431 | 944,296 | 6.05 | % | 10,367,620 | 556,235 | 5.37 | % | |||||||||
| Total interest-earning assets | $ | 18,403,149 | $ | 1,046,138 | 5.68 | % | $ | 12,637,224 | $ | 615,820 | 4.87 | % | |||||
| Non-Interest Earning Assets: | |||||||||||||||||
| Cash and due from banks | 233,829 | 119,232 | |||||||||||||||
| Other assets | 1,745,170 | 1,159,011 | |||||||||||||||
| Total assets | $ | 20,382,148 | $ | 13,915,467 | |||||||||||||
| Interest-Bearing Liabilities: | |||||||||||||||||
| Demand deposits | $ | 8,480,380 | $ | 245,874 | 2.90 | % | $ | 5,747,671 | $ | 125,471 | 2.18 | % | |||||
| Savings deposits | 1,502,852 | 3,443 | 0.23 | % | 1,282,062 | 2,184 | 0.17 | % | |||||||||
| Time deposits | 2,367,144 | 100,206 | 4.23 | % | 994,901 | 31,804 | 3.20 | % | |||||||||
| Total deposits | 12,350,376 | 349,523 | 2.83 | % | 8,024,634 | 159,459 | 1.99 | % | |||||||||
| Borrowed funds | 1,983,674 | 73,523 | 3.71 | % | 1,636,572 | 55,856 | 3.41 | % | |||||||||
| Subordinated debentures | 262,275 | 22,478 | 8.57 | % | 10,588 | 1,051 | 9.92 | % | |||||||||
| Total interest-bearing liabilities | $ | 14,596,325 | $ | 445,524 | 3.05 | % | $ | 9,671,794 | $ | 216,366 | 2.24 | % | |||||
| Non-Interest Bearing Liabilities: | |||||||||||||||||
| Non-interest bearing deposits | 3,120,571 | 2,328,557 | |||||||||||||||
| Other non-interest bearing liabilities | 385,727 | 270,587 | |||||||||||||||
| Total non-interest bearing liabilities | 3,506,298 | 2,599,144 | |||||||||||||||
| Total liabilities | 18,102,623 | 12,270,938 | |||||||||||||||
| Stockholders' equity | 2,279,525 | 1,644,529 | |||||||||||||||
| Total liabilities and stockholders' equity | $ | 20,382,148 | $ | 13,915,467 | |||||||||||||
| Net interest income | $ | 600,614 | $ | 399,454 | |||||||||||||
| Net interest rate spread | 2.63 | % | 2.63 | % | |||||||||||||
| Net interest-earning assets | $ | 3,806,824 | $ | 2,965,430 | |||||||||||||
| Net interest margin (3) | 3.26 | % | 3.16 | % | |||||||||||||
| Ratio of interest-earning assets to total interest-bearing liabilities | 1.26x | 1.31x | |||||||||||||||
| (1) Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses. | |||||||||||||||||
| (2) Average outstanding balance are net of the allowance for loan losses, deferred loan fees and expenses, loan premium and discounts and include non-accrual loans. | |||||||||||||||||
| (3) Annualized net interest income divided by average interest-earning assets. | |||||||||||||||||
| The following table summarizes the year-to-date net interest margin for the previous three years. | |||||||||
| Year Ended | |||||||||
| December 31, 2024 | December 31, 2023 | December 31, 2022 | |||||||
| Interest-Earning Assets: | |||||||||
| Securities | 3.43 | % | 2.62 | % | 1.86 | % | |||
| Net loans | 6.05 | % | 5.37 | % | 4.26 | % | |||
| Total interest-earning assets | 5.68 | % | 4.87 | % | 3.76 | % | |||
| Interest-Bearing Liabilities: | |||||||||
| Total deposits | 2.83 | % | 1.99 | % | 0.47 | % | |||
| Total borrowings | 3.71 | % | 3.41 | % | 1.23 | % | |||
| Total interest-bearing liabilities | 3.05 | % | 2.24 | % | 0.54 | % | |||
| Interest rate spread | 2.63 | % | 2.63 | % | 3.22 | % | |||
| Net interest margin | 3.26 | % | 3.16 | % | 3.37 | % | |||
| Ratio of interest-earning assets to interest-bearing liabilities | 1.26x | 1.31x | 1.38x | ||||||
FAQ
What was PFS's Q4 2024 earnings per share?
How much did the Lakeland merger add to PFS's assets in 2024?
What is PFS's quarterly dividend payment for Q1 2025?
How did PFS's net interest margin change in Q4 2024?
