Provident Financial Services, Inc. Reports Third Quarter Earnings and Declares Quarterly Cash Dividend
Provident Financial Services (NYSE:PFS) reported net income of $46.4 million ($0.36 per share) for Q3 2024, compared to a net loss of $11.5 million in Q2 2024 and net income of $28.5 million in Q3 2023. The results reflect the impact of the May 2024 merger with Lakeland Bancorp, which added $10.91 billion to total assets. Net interest income increased to $183.7 million, with net interest margin rising to 3.31%. The company recorded a $9.6 million provision for credit losses. Non-performing loans increased to 0.47% of total loans. The Board declared a quarterly cash dividend of $0.24 per share.
Provident Financial Services (NYSE:PFS) ha riportato un utile netto di 46,4 milioni di dollari (0,36 dollari per azione) per il terzo trimestre del 2024, rispetto a una perdita netta di 11,5 milioni di dollari nel secondo trimestre del 2024 e a un utile netto di 28,5 milioni di dollari nel terzo trimestre del 2023. I risultati riflettono l'impatto della fusione di maggio 2024 con Lakeland Bancorp, che ha aggiunto 10,91 miliardi di dollari agli attivi totali. Il reddito da interessi netti è aumentato a 183,7 milioni di dollari, con un margine di interesse netto che è salito al 3,31%. L'azienda ha registrato una accantonamento per perdite su crediti di 9,6 milioni di dollari. I prestiti non performanti sono aumentati allo 0,47% dei prestiti totali. Il Consiglio ha dichiarato un dividendo in contante trimestrale di 0,24 dollari per azione.
Provident Financial Services (NYSE:PFS) reportó un ingreso neto de 46,4 millones de dólares (0,36 dólares por acción) para el tercer trimestre de 2024, comparado con una pérdida neta de 11,5 millones de dólares en el segundo trimestre de 2024 y un ingreso neto de 28,5 millones de dólares en el tercer trimestre de 2023. Los resultados reflejan el impacto de la fusión de mayo de 2024 con Lakeland Bancorp, que añadió 10,91 mil millones de dólares a los activos totales. Los ingresos por intereses netos aumentaron a 183,7 millones de dólares, con un margen de interés neto que subió al 3,31%. La empresa registró una provisión de 9,6 millones de dólares para pérdidas crediticias. Los préstamos en default aumentaron al 0,47% del total de préstamos. La Junta declaró un dividendo en efectivo trimestral de 0,24 dólares por acción.
프로비던트 파이낸셜 서비스 (NYSE:PFS)는 2024년 3분기에 4640만 달러(주당 0.36 달러)의 순이익을 보고했으며, 이는 2024년 2분기의 순손실 1150만 달러와 2023년 3분기의 순이익 2850만 달러와 비교됩니다. 이 결과는 2024년 5월 Lakeland Bancorp와의 합병의 영향을 반영하며, 이는 총 자산에 109억 1000만 달러를 추가했습니다. 순이자 수익은 1억 8370만 달러로 증가했으며, 순이자 마진은 3.31%로 상승했습니다. 회사는 신용 손실을 대비한 960만 달러의 적립금을 기록했습니다. 부실 채권은 총 대출의 0.47%로 증가했습니다. 이사회는 주당 0.24 달러의 분기 배당금을 선언했습니다.
Provident Financial Services (NYSE:PFS) a rapporté un bénéfice net de 46,4 millions de dollars (0,36 dollar par action) pour le troisième trimestre de 2024, par rapport à une perte nette de 11,5 millions de dollars au deuxième trimestre de 2024 et à un bénéfice net de 28,5 millions de dollars au troisième trimestre de 2023. Les résultats reflètent l'impact de la fusion de mai 2024 avec Lakeland Bancorp, qui a ajouté 10,91 milliards de dollars aux actifs totaux. Le produit net d'intérêts a augmenté pour atteindre 183,7 millions de dollars, avec une marge d'intérêt net passant à 3,31%. L'entreprise a enregistré une provision pour pertes de crédit de 9,6 millions de dollars. Les prêts en souffrance ont augmenté pour atteindre 0,47% des prêts totaux. Le Conseil a déclaré un dividende trimestriel en liquidités de 0,24 dollar par action.
Provident Financial Services (NYSE:PFS) meldete einen Nettogewinn von 46,4 Millionen Dollar (0,36 Dollar pro Aktie) für das 3. Quartal 2024, im Vergleich zu einem Nettverlust von 11,5 Millionen Dollar im 2. Quartal 2024 und einem Nettogewinn von 28,5 Millionen Dollar im 3. Quartal 2023. Die Ergebnisse spiegeln die Auswirkungen der Fusion im Mai 2024 mit Lakeland Bancorp wider, die 10,91 Milliarden Dollar zu den Gesamassets hinzufügte. Die Nettozinseinnahmen stiegen auf 183,7 Millionen Dollar, während die Nettozinsmarge auf 3,31% anstieg. Das Unternehmen verbuchte eine Rückstellung für Kreditrisiken in Höhe von 9,6 Millionen Dollar. Die notleidenden Kredite erhöhte sich auf 0,47% der Gesamtkredite. Der Vorstand erklärte eine vierteljährliche Bardividende von 0,24 Dollar pro Aktie.
- Net income improved to $46.4 million in Q3 2024 from a loss in Q2 2024
- Net interest income increased $42.2 million to $183.7 million
- Net interest margin improved 10 basis points to 3.31%
- Wealth management and insurance agency income increased 9.0% and 12.6% respectively vs 2023
- Merger with Lakeland added $10.91 billion in assets, $7.91 billion in loans, and $8.62 billion in deposits
- Non-performing loans increased to 0.47% from 0.36% in Q2 2024
- Net charge-offs totaled $6.8 million in Q3 2024
- Year-over-year decline in net income per share from $0.38 to $0.36
- Merger-related transaction costs of $15.6 million in Q3 2024
Insights
The Q3 2024 results show a significant turnaround with net income of
- Net interest income increased
$42.2 million to$183.7 million - Net interest margin expanded to
3.31% , up 10 basis points - Strong fee income growth with wealth management up
9.0% and insurance up12.6%
However, there are some concerns: Non-performing loans increased to
The credit quality metrics require careful attention. While the
The office CRE portfolio shows prudent diversification with an average loan size of
ISELIN, N.J., Oct. 29, 2024 (GLOBE NEWSWIRE) -- Provident Financial Services, Inc. (NYSE:PFS) (the “Company”) reported net income of
The Company’s earnings for the three and nine months ended September 30, 2024 reflected the impact of the May 16, 2024 merger with Lakeland Bancorp, Inc. (“Lakeland”), which added
Anthony J. Labozzetta, President and Chief Executive Officer commented, “We achieved solid performance this quarter, and we are optimistic that our results will continue to improve as we further realize the synergies of the merger. Provident generated strong earnings and core metrics, aided by robust performance in our fee-based businesses. We continue to expand our operations prudently and believe we are well-positioned for even greater success as market conditions improve.”
Regarding the Company's merger with Lakeland, Mr. Labozzetta added, “We are proud to announce that, with the conversion of our core system in early September, our merger is complete and we are a unified organization. Our cultures are combining well and we are already experiencing the benefits of cost savings and enhanced revenue opportunities. We are grateful to the many team members whose hard work allowed for a smooth conversion and the retention of almost all legacy Lakeland customers.”
Performance Highlights for the Third Quarter of 2024
- Net interest income increased
$42.2 million to$183.7 million for the three months ended September 30, 2024, from$141.5 million for the trailing quarter primarily due to the full quarter impact of net assets acquired from Lakeland, including the accretion of purchase accounting adjustments and four basis points of core margin expansion. - The net interest margin increased ten basis points to
3.31% for the quarter ended September 30, 2024, from3.21% for the trailing quarter. The weighted average yield on interest-earning assets for the quarter ended September 30, 2024 increased 17 basis points to5.84% , compared to the trailing quarter, while the weighted average cost of interest-bearing liabilities for the quarter ended September 30, 2024 increased ten basis points to3.19% , compared to the trailing quarter. The increases in the yields and costs on interest-earning assets and interest-bearing liabilities were primarily due to a full quarter of accretion of purchase accounting adjustments related to the Lakeland merger, which contributed approximately 53 basis points to the net interest margin in the current quarter. - Non-interest income increased
$4.6 million to$26.9 million for the three months ended September 30, 2024, from$22.3 million for the trailing quarter, while non-interest expense increased$20.6 million to$136.0 million for the three months ended September 30, 2024, compared to$115.4 million for the trailing quarter. The increases in both non-interest income and non-interest expense were reflective of a full quarter of combined operations with Lakeland. - Wealth management and insurance agency income increased
9.0% and12.6% , respectively, versus the same period in 2023. The increase in wealth management income was primarily due to an increase in the average market value of assets under management during the period, while the increase in insurance agency income was largely due to an increase in business activity. - Adjusting 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
0.95% ,8.62% and14.53% for the quarter ended September 30, 2024, compared to0.06% ,0.53% and2.01% for the quarter ended June 30, 2024. A reconciliation between GAAP and the above non-GAAP ratios are 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
1.48% ,13.48% and19.77% for the quarter ended September 30, 2024, compared to1.47% ,13.26% and19.21% for the quarter ended June 30, 2024. A reconciliation between GAAP and the above non-GAAP ratios are shown on page 14 of the earnings release. - As of September 30, 2024, the Company's loan pipeline, consisting of work-in-process and loans approved pending closing, totaled
$1.98 billion , with a weighted average interest rate of7.18% , compared to$1.67 billion , with a weighted average interest rate of7.53% , as of June 30, 2024. - The Company recorded a
$9.6 million provision for credit losses on loans for the quarter ended September 30, 2024, compared to a$66.1 million provision for the trailing quarter. The provision for credit losses on loans in the quarter was primarily attributable to specific reserves required on individually analyzed loans, combined with some economic forecast deterioration. The allowance for credit losses as a percentage of loans increased to1.02% as of September 30, 2024, from1.00% as of June 30, 2024. - As of September 30, 2024, CRE loans related to office properties totaled
$921.1 million , compared to$953.5 million as of June 30, 2024. CRE loans secured by office properties constitutes only4.9% of total loans and have an average loan size of$1.9 million , with just seven relationships greater than$10.0 million . There were four loans totaling$9.2 million on non-accrual as of September 30, 2024, however we do not expect to incur losses on any of these loans. - As of September 30, 2024, multi-family CRE loans secured by New York City properties totaled
$226.6 million , compared to$227.7 million as of June 30, 2024. This portfolio constitutes only1.2% of total loans and has an average loan size of$2.6 million . Loans that are collateralized by rent stabilized apartments comprise less than0.80% of the total loan portfolio and are all performing. - Non-performing loans to total loans as of September 30, 2024 increased to
0.47% , compared to0.36% as of June 30, 2024, while non-performing assets to total assets as of September 30, 2024 increased to0.41% , compared to0.33% as of June 30, 2024. The increase in non-performing loans, compared to the prior quarter was primarily attributable to one commercial real estate credit secured by an industrial property which has a loan-to-value ratio of approximately39% . We anticipate a near-term resolution of this credit with no expected loss. For the three months ended September 30, 2024, net charge-offs totaled$6.8 million , or an annualized 14 basis points of average loans. Of this total,$6.4 million was attributable to one previously identified commercial relationship that had a$4.4 million specific reserve as of June 30, 2024. This credit is expected to be fully resolved in the fourth quarter of 2024.
Declaration of Quarterly Dividend
The Company’s Board of Directors declared a quarterly cash dividend of
Results of Operations
Three months ended September 30, 2024 compared to the three months ended June 30, 2024
For the three months ended September 30, 2024, the Company reported net income of
Net Interest Income and Net Interest Margin
Net interest income increased
The Company’s net interest margin increased ten basis points to
The weighted average yield on interest-earning assets for the quarter ended September 30, 2024 increased 17 basis points to
Provision for Credit Losses on Loans
For the quarter ended September 30, 2024, the Company recorded a
Non-Interest Income and Expense
For the three months ended September 30, 2024, non-interest income totaled
Non-interest expense totaled
The Company’s annualized adjusted non-interest expense as a percentage of average assets(5) declined to
Income Tax Expense/Benefit
For the three months ended September 30, 2024, the Company's income tax expense was
Three months ended September 30, 2024 compared to the three months ended September 30, 2023
For the three months ended September 30, 2024, the Company reported net income of
Net Interest Income and Net Interest Margin
Net interest income increased
The Company’s net interest margin increased 35 basis points to
The weighted average yield on interest-earning assets for the quarter ended September 30, 2024 increased 95 basis points to
Provision for Credit Losses on Loans
For the quarter ended September 30, 2024, the Company recorded a
Non-Interest Income and Expense
Non-interest income totaled
For the three months ended September 30, 2024, non-interest expense totaled
The Company’s annualized adjusted non-interest expense as a percentage of average assets(5) was
Income Tax Expense
For the three months ended September 30, 2024, the Company's income tax expense was
Nine months ended September 30, 2024 compared to the nine months ended September 30, 2023
For the nine months ended September 30, 2024, net income totaled
Net Interest Income and Net Interest Margin
Net interest income increased
For the nine months ended September 30, 2024, our net interest margin decreased one basis point to
Provision for Credit Losses on Loans
For the nine months ended September 30, 2024, the Company recorded a
Non-Interest Income and Expense
For the nine months ended September 30, 2024, non-interest income totaled
Non-interest expense totaled
Income Tax Expense
For the nine months ended September 30, 2024, the Company's income tax expense was
Asset Quality
The Company’s total non-performing loans as of September 30, 2024 were
As of September 30, 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 delinquency statistics and certain asset quality ratios.
| September 30, 2024 | June 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 | 2 | $ | 430 | 3 | $ | 1,707 | 1 | $ | 825 | |||||||||
| Multi-family mortgage loans | — | — | — | — | 1 | 3,815 | ||||||||||||
| Construction loans | — | — | — | — | — | — | ||||||||||||
| Residential mortgage loans | 23 | 5,020 | 9 | 1,714 | 13 | 3,429 | ||||||||||||
| Total mortgage loans | 25 | 5,450 | 12 | 3,421 | 15 | 8,069 | ||||||||||||
| Commercial loans | 14 | 1,952 | 20 | 3,444 | 6 | 998 | ||||||||||||
| Consumer loans | 53 | 4,073 | 38 | 2,891 | 31 | 875 | ||||||||||||
| Total 30 to 59 days past due | 92 | $ | 11,475 | 70 | $ | 9,756 | 52 | $ | 9,942 | |||||||||
| 60 to 89 days past due: | ||||||||||||||||||
| Commercial mortgage loans | 1 | $ | 641 | 3 | $ | 1,231 | — | $ | — | |||||||||
| Multi-family mortgage loans | — | — | — | — | 1 | 1,635 | ||||||||||||
| Construction loans | — | — | — | — | — | — | ||||||||||||
| Residential mortgage loans | 11 | 1,991 | 10 | 2,193 | 8 | 1,208 | ||||||||||||
| Total mortgage loans | 12 | 2,632 | 13 | 3,424 | 9 | 2,843 | ||||||||||||
| Commercial loans | 9 | 1,240 | 6 | 1,146 | 3 | 198 | ||||||||||||
| Consumer loans | 10 | 606 | 9 | 648 | 5 | 275 | ||||||||||||
| Total 60 to 89 days past due | 31 | 4,478 | 28 | 5,218 | 17 | 3,316 | ||||||||||||
| Total accruing past due loans | 123 | $ | 15,953 | 98 | $ | 14,974 | 69 | $ | 13,258 | |||||||||
| Non-accrual: | ||||||||||||||||||
| Commercial mortgage loans | 17 | $ | 13,969 | 10 | $ | 3,588 | 7 | $ | 5,151 | |||||||||
| Multi-family mortgage loans | 6 | 7,578 | 5 | 7,276 | 1 | 744 | ||||||||||||
| Construction loans | 2 | 13,151 | 1 | 11,698 | 1 | 771 | ||||||||||||
| Residential mortgage loans | 24 | 5,211 | 20 | 4,447 | 7 | 853 | ||||||||||||
| Total mortgage loans | 49 | 39,909 | 36 | 27,009 | 16 | 7,519 | ||||||||||||
| Commercial loans | 69 | 48,592 | 58 | 39,715 | 26 | 41,487 | ||||||||||||
| Consumer loans | 32 | 1,433 | 24 | 1,144 | 10 | 633 | ||||||||||||
| Total non-accrual loans | 150 | $ | 89,934 | 118 | $ | 67,868 | 52 | $ | 49,639 | |||||||||
| Non-performing loans to total loans | 0.47 | % | 0.36 | % | 0.46 | % | ||||||||||||
| Allowance for loan losses to total non-performing loans | 217.09 | % | 277.50 | % | 215.96 | % | ||||||||||||
| Allowance for loan losses to total loans | 1.02 | % | 1.00 | % | 0.99 | % | ||||||||||||
As of September 30, 2024 and December 31, 2023, the Company held foreclosed assets of
Balance Sheet Summary
Total assets as of September 30, 2024 were
The Company’s loans held for investment portfolio totaled
| September 30, 2024 | June 30, 2024 | December 31, 2023 | |||||||||
| (Dollars in thousands) | |||||||||||
| Mortgage loans: | |||||||||||
| Commercial | $ | 7,342,456 | $ | 7,337,742 | $ | 4,512,411 | |||||
| Multi-family | 3,226,918 | 3,189,808 | 1,812,500 | ||||||||
| Construction | 873,509 | 970,244 | 653,246 | ||||||||
| Residential | 2,032,671 | 2,024,027 | 1,164,956 | ||||||||
| Total mortgage loans | 13,475,554 | 13,521,821 | 8,143,113 | ||||||||
| Commercial loans | 4,710,601 | 4,617,232 | 2,440,621 | ||||||||
| Consumer loans | 623,709 | 626,016 | 299,164 | ||||||||
| Total gross loans | 18,809,864 | 18,765,069 | 10,882,898 | ||||||||
| Premiums on purchased loans | 1,362 | 1,410 | 1,474 | ||||||||
| Net deferred fees and unearned discounts | (16,617 | ) | (7,149 | ) | (12,456 | ) | |||||
| Total loans | $ | 18,794,609 | $ | 18,759,330 | $ | 10,871,916 | |||||
As part of the merger with Lakeland, we acquired
For the nine months ended September 30, 2024, loan funding, including advances on lines of credit, totaled
As of September 30, 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. Provident 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, October 30, 2024 at 10:00 a.m. Eastern Time to discuss the Company’s financial results for the quarter ended September 30, 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 Current Reports on Form 8-K, 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 any turmoil or negative news 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, any failure to realize the anticipated benefits of the merger 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 return on average assets, average equity and average tangible equity, annualized adjusted pre-tax pre-provision return on average assets, average equity and 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 Nine Months Ended | ||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Statement of Income | |||||||||||||||||||
| Net interest income | $ | 183,701 | $ | 141,506 | $ | 96,236 | $ | 418,877 | $ | 303,666 | |||||||||
| Provision for credit losses | 9,299 | 69,705 | 12,541 | 78,684 | 29,031 | ||||||||||||||
| Non-interest income | 26,855 | 22,275 | 19,320 | 69,937 | 60,861 | ||||||||||||||
| Non-interest expense | 136,002 | 115,394 | 65,625 | 323,224 | 199,485 | ||||||||||||||
| Income (loss) before income tax expense | 65,255 | (21,318 | ) | 37,390 | 86,906 | 136,011 | |||||||||||||
| Net income (loss) | 46,405 | (11,485 | ) | 28,547 | 67,001 | 101,086 | |||||||||||||
| Diluted earnings per share | $ | 0.36 | $ | (0.11 | ) | $ | 0.38 | $ | 0.65 | $ | 1.35 | ||||||||
| Interest rate spread | 2.65 | % | 2.58 | % | 2.39 | % | 2.55 | % | 2.69 | % | |||||||||
| Net interest margin | 3.31 | % | 3.21 | % | 2.96 | % | 3.18 | % | 3.19 | % | |||||||||
| Profitability | |||||||||||||||||||
| Annualized return on average assets | 0.76 | % | (0.24 | )% | 0.81 | % | 0.47 | % | 0.98 | % | |||||||||
| Annualized adjusted return on average assets (1) | 0.95 | % | 0.06 | % | 0.86 | % | 0.66 | % | 1.02 | % | |||||||||
| Annualized return on average equity | 6.94 | % | (2.17 | )% | 6.84 | % | 4.14 | % | 8.22 | % | |||||||||
| Annualized adjusted return on average equity (1) | 8.62 | % | 0.53 | % | 7.30 | % | 5.83 | % | 8.59 | % | |||||||||
| Annualized return on average tangible equity (4) | 12.06 | % | (3.15 | )% | 9.47 | % | 7.13 | % | 11.40 | % | |||||||||
| Annualized adjusted return on average tangible equity (1) | 14.53 | % | 2.01 | % | 10.24 | % | 9.56 | % | 12.07 | % | |||||||||
| Annualized adjusted non-interest expense to average assets (4) | 1.98 | % | 2.02 | % | 1.80 | % | 1.99 | % | 1.87 | % | |||||||||
| Efficiency ratio (6) | 57.20 | % | 57.86 | % | 54.81 | % | 58.27 | % | 53.26 | % | |||||||||
| Asset Quality | |||||||||||||||||||
| Non-accrual loans | $ | 67,868 | $ | 89,934 | $ | 39,529 | |||||||||||||
| 90+ and still accruing | — | — | — | ||||||||||||||||
| Non-performing loans | 67,868 | 88,061 | 39,529 | ||||||||||||||||
| Foreclosed assets | 11,119 | 9,801 | 16,487 | ||||||||||||||||
| Non-performing assets | 78,987 | 97,862 | 56,016 | ||||||||||||||||
| Non-performing loans to total loans | 0.36 | % | 0.47 | % | 0.37 | % | |||||||||||||
| Non-performing assets to total assets | 0.33 | % | 0.41 | % | 0.40 | % | |||||||||||||
| Allowance for loan losses | $ | 188,331 | $ | 191,175 | $ | 107,563 | |||||||||||||
| Allowance for loan losses to total non-performing loans | 277.50 | % | 217.09 | % | 272.11 | % | |||||||||||||
| Allowance for loan losses to total loans | 1.00 | % | 1.02 | % | 1.01 | % | |||||||||||||
| Net loan charge-offs | $ | 6,756 | $ | 1,340 | $ | 5,510 | $ | 9,067 | $ | 7,266 | |||||||||
| Annualized net loan charge-offs to average total loans | 0.14 | % | 0.04 | % | 0.21 | % | 0.08 | % | 0.09 | % | |||||||||
| Average Balance Sheet Data | |||||||||||||||||||
| Assets | $ | 24,248,038 | $ | 19,197,041 | $ | 13,976,610 | $ | 19,198,113 | $ | 13,848,351 | |||||||||
| Loans, net | 18,531,939 | 14,649,413 | 10,470,843 | 14,631,071 | 10,269,022 | ||||||||||||||
| Earning assets | 21,809,226 | 17,385,819 | 12,735,938 | 17,305,446 | 12,574,437 | ||||||||||||||
| Core deposits | 15,394,715 | 12,257,244 | 9,212,202 | 12,271,839 | 9,408,156 | ||||||||||||||
| Borrowings | 2,125,149 | 2,158,193 | 1,780,655 | 2,074,958 | 1,556,619 | ||||||||||||||
| Interest-bearing liabilities | 17,304,569 | 13,856,039 | 9,826,064 | 13,757,895 | 9,554,204 | ||||||||||||||
| Stockholders' equity | 2,660,470 | 2,127,469 | 1,654,920 | 2,163,856 | 1,645,093 | ||||||||||||||
| Average yield on interest-earning assets | 5.84 | % | 5.67 | % | 4.89 | % | 5.61 | % | 4.76 | % | |||||||||
| Average cost of interest-bearing liabilities | 3.19 | % | 3.09 | % | 2.50 | % | 3.06 | % | 2.07 | % | |||||||||
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 | Nine Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Net Income | $ | 46,405 | $ | (11,485 | ) | $ | 28,547 | $ | 67,001 | $ | 101,086 | |||||||||
| Merger-related transaction costs | 15,567 | 18,915 | 2,289 | 36,684 | 5,349 | |||||||||||||||
| Less: income tax expense | (4,306 | ) | (4,625 | ) | (486 | ) | (9,274 | ) | (1,015 | ) | ||||||||||
| Annualized adjusted net income | $ | 57,666 | $ | 2,805 | $ | 30,350 | $ | 94,411 | $ | 105,420 | ||||||||||
| Less: Amortization of Intangibles (net of tax) | $ | 8,551 | $ | 4,532 | $ | 503 | $ | 13,577 | $ | 1,560 | ||||||||||
| Annualized adjusted net income for annualized adjusted return on average tangible equity | $ | 66,217 | $ | 7,337 | $ | 30,853 | $ | 107,988 | $ | 106,980 | ||||||||||
| Annualized Adjusted Return on Average Assets | 0.95 | % | 0.06 | % | 0.86 | % | 0.66 | % | 1.02 | % | ||||||||||
| Annualized Adjusted Return on Average Equity | 8.62 | % | 0.53 | % | 7.30 | % | 5.83 | % | 8.59 | % | ||||||||||
| Annualized Adjusted Return on Average Tangible Equity | 14.53 | % | 2.01 | % | 10.24 | % | 9.56 | % | 12.07 | % | ||||||||||
| (2) Annualized adjusted pre-tax, pre-provision ("PTPP") returns on average assets, average equity and average tangible equity | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Net income (loss) | $ | 46,405 | $ | (11,485 | ) | $ | 28,547 | $ | 67,001 | $ | 101,086 | |||||||||
| Adjustments to net income (loss): | ||||||||||||||||||||
| Provision for credit losses | 9,299 | 69,705 | 12,541 | 78,684 | 29,031 | |||||||||||||||
| Net loss on Lakeland bond sale | — | 2,839 | — | — | — | |||||||||||||||
| Merger-related transaction costs | 15,567 | 18,915 | 2,289 | 36,684 | 5,349 | |||||||||||||||
| Income tax expense (benefit) | 18,850 | (9,833 | ) | 8,843 | 19,905 | 34,925 | ||||||||||||||
| PTPP income | $ | 90,121 | $ | 70,141 | $ | 52,220 | $ | 202,274 | $ | 170,391 | ||||||||||
| Annualized PTPP income | $ | 358,525 | $ | 282,106 | $ | 207,177 | $ | 270,191 | $ | 227,812 | ||||||||||
| Average assets | $ | 24,248,038 | $ | 19,197,041 | $ | 13,976,610 | $ | 19,198,113 | $ | 13,848,351 | ||||||||||
| Average equity | $ | 2,660,470 | $ | 2,127,469 | $ | 1,654,920 | $ | 2,163,856 | $ | 1,645,093 | ||||||||||
| Average tangible equity | $ | 1,813,327 | $ | 1,468,630 | $ | 1,195,787 | $ | 1,508,594 | $ | 1,185,222 | ||||||||||
| Annualized PTPP return on average assets | 1.48 | % | 1.47 | % | 1.48 | % | 1.41 | % | 1.65 | % | ||||||||||
| Annualized PTPP return on average equity | 13.48 | % | 13.26 | % | 12.52 | % | 12.49 | % | 13.85 | % | ||||||||||
| Annualized PTPP return on average tangible equity | 19.77 | % | 19.21 | % | 17.33 | % | 17.91 | % | 19.22 | % | ||||||||||
| (3) Book and Tangible Book Value per Share | ||||||||||||||||||||
| September 30, | June 30, | December 31, | ||||||||||||||||||
| 2024 | 2024 | 2023 | ||||||||||||||||||
| Total stockholders' equity | $ | 2,621,058 | $ | 2,555,646 | $ | 1,690,596 | ||||||||||||||
| Less: total intangible assets | 839,223 | 851,507 | 457,942 | |||||||||||||||||
| Total tangible stockholders' equity | $ | 1,781,835 | $ | 1,704,139 | $ | 1,232,654 | ||||||||||||||
| Shares outstanding | 130,448,599 | 130,380,393 | 75,537,186 | |||||||||||||||||
| Book value per share (total stockholders' equity/shares outstanding) | $ | 20.09 | $ | 19.60 | $ | 22.38 | ||||||||||||||
| Tangible book value per share (total tangible stockholders' equity/shares outstanding) | $ | 13.66 | $ | 13.07 | $ | 16.32 | ||||||||||||||
| (4) Annualized Return on Average Tangible Equity | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Total average stockholders' equity | $ | 2,660,470 | $ | 2,127,469 | $ | 1,654,920 | $ | 2,163,856 | $ | 1,645,093 | ||||||||||
| Less: total average intangible assets | 847,143 | 658,839 | 459,133 | 655,262 | 459,871 | |||||||||||||||
| Total average tangible stockholders' equity | $ | 1,813,327 | $ | 1,468,630 | $ | 1,195,787 | $ | 1,508,594 | $ | 1,185,222 | ||||||||||
| Net income (loss) | $ | 46,405 | $ | (11,485 | ) | $ | 28,547 | $ | 67,001 | $ | 101,086 | |||||||||
| Less: Amortization of Intangibles, net of tax | 8,551 | 4,532 | 503 | 13,577 | 1,560 | |||||||||||||||
| Total net income (loss) | $ | 54,956 | $ | (6,953 | ) | $ | 29,050 | $ | 80,578 | $ | 102,646 | |||||||||
| Annualized return on average tangible equity (net income/total average tangible stockholders' equity) | 12.06 | % | (1.90) % | 9.64 | % | 7.13 | % | 11.58 | % | |||||||||||
| (5) Annualized Adjusted Non-Interest Expense to Average Assets | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Reported non-interest expense | $ | 136,002 | $ | 115,394 | $ | 65,625 | $ | 323,224 | $ | 199,485 | ||||||||||
| Adjustments to non-interest expense: | ||||||||||||||||||||
| Merger-related transaction costs | 15,567 | 18,915 | 2,289 | 36,684 | 5,349 | |||||||||||||||
| Adjusted non-interest expense | $ | 120,435 | $ | 96,479 | $ | 63,336 | $ | 286,540 | $ | 194,136 | ||||||||||
| Annualized adjusted non-interest expense | $ | 479,122 | $ | 388,036 | $ | 251,279 | $ | 382,751 | $ | 259,559 | ||||||||||
| Average assets | $ | 24,248,038 | $ | 19,197,041 | $ | 13,976,610 | $ | 19,198,113 | $ | 13,848,351 | ||||||||||
| Annualized adjusted non-interest expense/average assets | 1.98 | % | 2.02 | % | 1.80 | % | 1.99 | % | 1.87 | % | ||||||||||
| (6) Efficiency Ratio Calculation | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Net interest income | $ | 183,701 | $ | 141,506 | $ | 96,236 | $ | 418,877 | $ | 303,666 | ||||||||||
| Reported non-interest income | 26,855 | 22,275 | 19,320 | 69,937 | 60,861 | |||||||||||||||
| Adjustments to non-interest income: | ||||||||||||||||||||
| Net (gain) loss on securities transactions | (2 | ) | 2,973 | 13 | 2,972 | (37 | ) | |||||||||||||
| Adjusted non-interest income | 26,853 | 25,248 | 19,333 | 72,909 | 60,824 | |||||||||||||||
| Total income | $ | 210,554 | $ | 166,754 | $ | 115,569 | $ | 491,786 | $ | 364,490 | ||||||||||
| Adjusted non-interest expense | $ | 120,435 | $ | 96,479 | $ | 63,336 | $ | 286,540 | $ | 194,136 | ||||||||||
| Efficiency ratio (adjusted non-interest expense/income) | 57.20 | % | 57.86 | % | 54.80 | % | 58.27 | % | 53.26 | % | ||||||||||
| PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY | |||||||
| Consolidated Statements of Financial Condition | |||||||
| September 30, 2024 (Unaudited) and December 31, 2023 | |||||||
| (Dollars in Thousands) | |||||||
| Assets | September 30, 2024 | December 31, 2023 | |||||
| Cash and due from banks | $ | 244,064 | $ | 180,241 | |||
| Short-term investments | 25 | 14 | |||||
| Total cash and cash equivalents | 244,089 | 180,255 | |||||
| Available for sale debt securities, at fair value | 2,725,110 | 1,690,112 | |||||
| Held to maturity debt securities, net of allowance (fair value of | 332,021 | 363,080 | |||||
| Equity securities, at fair value | 20,044 | 1,270 | |||||
| Federal Home Loan Bank stock | 96,219 | 79,217 | |||||
| Loans held for sale | 5,757 | 1,785 | |||||
| Loans held for investment | 18,794,609 | 10,871,916 | |||||
| Less allowance for credit losses | 191,175 | 107,200 | |||||
| Net loans | 18,609,191 | 10,766,501 | |||||
| Foreclosed assets, net | 9,801 | 11,651 | |||||
| Banking premises and equipment, net | 124,955 | 70,998 | |||||
| Accrued interest receivable | 89,866 | 58,966 | |||||
| Intangible assets | 839,223 | 457,942 | |||||
| Bank-owned life insurance | 403,648 | 243,050 | |||||
| Other assets | 548,348 | 287,768 | |||||
| Total assets | $ | 24,042,515 | $ | 14,210,810 | |||
| Liabilities and Stockholders' Equity | |||||||
| Deposits: | |||||||
| Demand deposits | $ | 13,548,480 | $ | 8,020,889 | |||
| Savings deposits | 1,671,209 | 1,175,683 | |||||
| Certificates of deposit of | 800,005 | 218,549 | |||||
| Other time deposits | 2,356,491 | 877,393 | |||||
| Total deposits | 18,376,185 | 10,292,514 | |||||
| Mortgage escrow deposits | 48,007 | 36,838 | |||||
| Borrowed funds | 2,214,512 | 1,970,033 | |||||
| Subordinated debentures | 414,184 | 10,695 | |||||
| Other liabilities | 368,569 | 210,134 | |||||
| Total liabilities | 21,421,457 | 12,520,214 | |||||
| Stockholders' equity: | |||||||
| Preferred stock, | — | — | |||||
| Common stock, | 1,376 | 832 | |||||
| Additional paid-in capital | 1,871,343 | 989,058 | |||||
| Retained earnings | 972,997 | 974,542 | |||||
| Accumulated other comprehensive loss | (93,049 | ) | (141,115 | ) | |||
| Treasury stock | (129,148 | ) | (127,825 | ) | |||
| Unallocated common stock held by the Employee Stock Ownership Plan | (2,461 | ) | (4,896 | ) | |||
| Common Stock acquired by the Directors' Deferred Fee Plan | (2,247 | ) | (2,694 | ) | |||
| Deferred Compensation - Directors' Deferred Fee Plan | 2,247 | 2,694 | |||||
| Total stockholders' equity | 2,621,058 | 1,690,596 | |||||
| Total liabilities and stockholders' equity | $ | 24,042,515 | $ | 14,210,810 | |||
| PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY | ||||||||||||||||
| Consolidated Statements of Income | ||||||||||||||||
| Three months ended September 30, 2024, June 30, 2024 and September 30, 2023, and nine months ended September 30, 2024 and 2023 (Unaudited) | ||||||||||||||||
| (Dollars in Thousands, except per share data) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Interest and dividend income: | ||||||||||||||||
| Real estate secured loans | $ | 197,857 | $ | 156,318 | $ | 104,540 | $ | 461,632 | $ | 299,830 | ||||||
| Commercial loans | 81,183 | 58,532 | 33,806 | 175,815 | 93,915 | |||||||||||
| Consumer loans | 12,947 | 8,351 | 4,746 | 25,820 | 13,419 | |||||||||||
| Available for sale debt securities, equity securities and Federal Home Loan Bank stock | 25,974 | 20,394 | 11,886 | 58,698 | 34,748 | |||||||||||
| Held to maturity debt securities | 2,136 | 2,357 | 2,334 | 6,761 | 7,059 | |||||||||||
| Deposits, federal funds sold and other short-term investments | 2,425 | 1,859 | 885 | 5,466 | 2,678 | |||||||||||
| Total interest income | 322,522 | 247,811 | 158,197 | 734,192 | 451,649 | |||||||||||
| Interest expense: | ||||||||||||||||
| Deposits | 110,009 | 81,058 | 44,923 | 243,602 | 108,880 | |||||||||||
| Borrowed funds | 19,923 | 20,566 | 16,765 | 57,871 | 38,329 | |||||||||||
| Subordinated debt | 8,889 | 4,681 | 273 | 13,842 | 774 | |||||||||||
| Total interest expense | 138,821 | 106,305 | 61,961 | 315,315 | 147,983 | |||||||||||
| Net interest income | 183,701 | 141,506 | 96,236 | 418,877 | 303,666 | |||||||||||
| Provision charge for credit losses | 9,299 | 69,705 | 12,541 | 78,684 | 29,031 | |||||||||||
| Net interest income after provision for credit losses | 174,402 | 71,801 | 83,695 | 340,193 | 274,635 | |||||||||||
| Non-interest income: | ||||||||||||||||
| Fees | 9,816 | 8,699 | 6,132 | 24,426 | 18,294 | |||||||||||
| Wealth management income | 7,620 | 7,769 | 6,992 | 22,878 | 20,826 | |||||||||||
| Insurance agency income | 3,631 | 4,488 | 3,224 | 12,912 | 11,175 | |||||||||||
| Bank-owned life insurance | 4,308 | 3,323 | 1,820 | 9,448 | 4,838 | |||||||||||
| Net gain (loss) on securities transactions | 2 | (2,973 | ) | 13 | (2,972 | ) | 37 | |||||||||
| Other income | 1,478 | 969 | 1,139 | 3,245 | 5,691 | |||||||||||
| Total non-interest income | 26,855 | 22,275 | 19,320 | 69,937 | 60,861 | |||||||||||
| Non-interest expense: | ||||||||||||||||
| Compensation and employee benefits | 63,468 | 54,888 | 35,702 | 158,404 | 109,724 | |||||||||||
| Net occupancy expense | 12,790 | 11,142 | 8,113 | 32,452 | 24,474 | |||||||||||
| Data processing expense | 10,481 | 8,433 | 5,312 | 25,698 | 16,536 | |||||||||||
| FDIC Insurance | 4,180 | 3,100 | 1,628 | 9,553 | 5,688 | |||||||||||
| Amortization of intangibles | 12,231 | 6,483 | 720 | 19,420 | 2,231 | |||||||||||
| Advertising and promotion expense | 1,524 | 1,171 | 1,133 | 3,661 | 3,722 | |||||||||||
| Merger-related expenses | 15,567 | 18,915 | 2,289 | 36,684 | 5,349 | |||||||||||
| Other operating expenses | 15,761 | 11,262 | 10,728 | 37,352 | 31,761 | |||||||||||
| Total non-interest expense | 136,002 | 115,394 | 65,625 | 323,224 | 199,485 | |||||||||||
| Income (loss) before income tax expense | 65,255 | (21,318 | ) | 37,390 | 86,906 | 136,011 | ||||||||||
| Income tax expense (benefit) | 18,850 | (9,833 | ) | 8,843 | 19,905 | 34,925 | ||||||||||
| Net income (loss) | $ | 46,405 | $ | (11,485 | ) | $ | 28,547 | $ | 67,001 | $ | 101,086 | |||||
| Basic earnings per share | $ | 0.36 | $ | (0.11 | ) | $ | 0.38 | $ | 0.65 | $ | 1.35 | |||||
| Average basic shares outstanding | 129,941,845 | 102,957,521 | 74,909,083 | 102,819,042 | 74,793,530 | |||||||||||
| Diluted earnings per share | $ | 0.36 | $ | (0.11 | ) | $ | 0.38 | $ | 0.65 | $ | 1.35 | |||||
| Average diluted shares outstanding | 130,004,870 | 102,957,521 | 74,914,205 | 102,845,261 | 74,816,606 | |||||||||||
| PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY | ||||||||||||||||||||||||||
| Net Interest Margin Analysis | ||||||||||||||||||||||||||
| Quarterly Average Balances | ||||||||||||||||||||||||||
| (Dollars in Thousands) (Unaudited) | ||||||||||||||||||||||||||
| September 30, 2024 | June 30, 2024 | September 30, 2023 | ||||||||||||||||||||||||
| Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | ||||||||||||||||||
| Interest-Earning Assets: | ||||||||||||||||||||||||||
| Deposits | $ | 179,313 | $ | 2,425 | 5.38 | % | $ | 40,228 | $ | 1,859 | 5.38 | % | $ | 74,183 | $ | 884 | 4.73 | % | ||||||||
| Federal funds sold and other short-term investments | — | — | — | % | 0 | — | — | % | 57 | 1 | 4.00 | % | ||||||||||||||
| Available for sale debt securities | 2,644,262 | 24,884 | 3.72 | % | 2,244,725 | 17,647 | 3.14 | % | 1,724,833 | 10,127 | 2.35 | % | ||||||||||||||
| Held to maturity debt securities, net (1) | 342,217 | 2,136 | 2.50 | % | 352,216 | 2,357 | 2.68 | % | 373,681 | 2,334 | 2.50 | % | ||||||||||||||
| Equity securities, at fair value | 19,654 | — | — | % | 10,373 | — | — | % | 1,068 | — | — | % | ||||||||||||||
| Federal Home Loan Bank stock | 91,841 | 1,090 | 4.75 | % | 88,864 | 2,747 | 12.36 | % | 91,273 | 1,759 | 7.71 | % | ||||||||||||||
| Net loans: (2) | ||||||||||||||||||||||||||
| Total mortgage loans | 13,363,265 | 197,857 | 5.83 | % | 10,674,109 | 156,318 | 5.81 | % | 7,881,193 | 104,540 | 5.21 | % | ||||||||||||||
| Total commercial loans | 4,546,088 | 81,183 | 7.05 | % | 3,514,602 | 58,532 | 6.62 | % | 2,289,267 | 33,806 | 5.81 | % | ||||||||||||||
| Total consumer loans | 622,586 | 12,947 | 8.27 | % | 460,702 | 8,351 | 7.29 | % | 300,383 | 4,746 | 6.27 | % | ||||||||||||||
| Total net loans | 18,531,939 | 291,987 | 6.21 | % | 14,649,413 | 223,201 | 6.05 | % | 10,470,843 | 143,092 | 5.37 | % | ||||||||||||||
| Total interest-earning assets | $ | 21,809,226 | $ | 322,522 | 5.84 | % | $ | 17,385,819 | $ | 247,811 | 5.67 | % | $ | 12,735,938 | $ | 158,197 | 4.89 | % | ||||||||
| Non-Interest Earning Assets: | ||||||||||||||||||||||||||
| Cash and due from banks | 341,505 | 37,621 | 82,522 | |||||||||||||||||||||||
| Other assets | 2,097,307 | 1,773,601 | 1,158,150 | |||||||||||||||||||||||
| Total assets | $ | 24,248,038 | $ | 19,197,041 | $ | 13,976,610 | ||||||||||||||||||||
| Interest-Bearing Liabilities: | ||||||||||||||||||||||||||
| Demand deposits | $ | 9,942,053 | $ | 74,864 | 3.00 | % | $ | 7,935,543 | $ | 58,179 | 2.95 | % | $ | 5,741,052 | $ | 35,290 | 2.44 | % | ||||||||
| Savings deposits | 1,711,502 | 1,006 | 0.23 | % | 1,454,784 | 832 | 0.23 | % | 1,240,951 | 592 | 0.19 | % | ||||||||||||||
| Time deposits | 3,112,598 | 34,139 | 4.36 | % | 2,086,433 | 22,047 | 4.25 | % | 1,052,793 | 9,041 | 3.41 | % | ||||||||||||||
| Total deposits | 14,766,153 | 110,009 | 2.96 | % | 11,476,760 | 81,058 | 2.84 | % | 8,034,796 | 44,923 | 2.22 | % | ||||||||||||||
| Borrowed funds | 2,125,149 | 19,923 | 3.73 | % | 2,158,193 | 20,566 | 3.83 | % | 1,780,655 | 16,765 | 3.74 | % | ||||||||||||||
| Subordinated debentures | 413,267 | 8,889 | 8.56 | % | 221,086 | 4,681 | 8.52 | % | 10,613 | 273 | 10.24 | % | ||||||||||||||
| Total interest-bearing liabilities | 17,304,569 | 138,821 | 3.19 | % | 13,856,039 | 106,305 | 3.09 | % | 9,826,064 | 61,961 | 2.50 | % | ||||||||||||||
| Non-Interest Bearing Liabilities: | ||||||||||||||||||||||||||
| Non-interest bearing deposits | 3,741,160 | 2,866,917 | 2,230,199 | |||||||||||||||||||||||
| Other non-interest bearing liabilities | 541,839 | 346,616 | 265,427 | |||||||||||||||||||||||
| Total non-interest bearing liabilities | 4,282,999 | 3,213,533 | 2,495,626 | |||||||||||||||||||||||
| Total liabilities | 21,587,568 | 17,069,572 | 12,321,690 | |||||||||||||||||||||||
| Stockholders' equity | 2,660,470 | 2,127,469 | 1,654,920 | |||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 24,248,038 | $ | 19,197,041 | $ | 13,976,610 | ||||||||||||||||||||
| Net interest income | $ | 183,701 | $ | 141,506 | $ | 96,236 | ||||||||||||||||||||
| Net interest rate spread | 2.65 | % | 2.58 | % | 2.39 | % | ||||||||||||||||||||
| Net interest-earning assets | $ | 4,504,657 | $ | 3,529,780 | $ | 2,909,874 | ||||||||||||||||||||
| Net interest margin (3) | 3.31 | % | 3.21 | % | 2.96 | % | ||||||||||||||||||||
| Ratio of interest-earning assets to total interest-bearing liabilities | 1.26x | 1.25x | 1.30x | |||||||||||||||||||||||
| (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. | ||||||||||||||
| 9/30/24 | 6/30/24 | 3/31/24 | 12/31/23 | 9/30/23 | ||||||||||
| 3rd Qtr. | 2nd Qtr. | 1st Qtr. | 4th Qtr. | 3rd Qtr. | ||||||||||
| Interest-Earning Assets: | ||||||||||||||
| Securities | 3.69 | % | 3.40 | % | 2.87 | % | 2.79 | % | 2.67 | % | ||||
| Net loans | 6.21 | % | 6.05 | % | 5.51 | % | 5.50 | % | 5.37 | % | ||||
| Total interest-earning assets | 5.84 | % | 5.67 | % | 5.06 | % | 5.04 | % | 4.89 | % | ||||
| Interest-Bearing Liabilities: | ||||||||||||||
| Total deposits | 2.96 | % | 2.84 | % | 2.60 | % | 2.47 | % | 2.22 | % | ||||
| Total borrowings | 3.73 | % | 3.83 | % | 3.60 | % | 3.71 | % | 3.74 | % | ||||
| Total interest-bearing liabilities | 3.19 | % | 3.09 | % | 2.80 | % | 2.71 | % | 2.50 | % | ||||
| Interest rate spread | 2.65 | % | 2.58 | % | 2.26 | % | 2.33 | % | 2.39 | % | ||||
| Net interest margin | 3.31 | % | 3.21 | % | 2.87 | % | 2.92 | % | 2.96 | % | ||||
| Ratio of interest-earning assets to interest-bearing liabilities | 1.26x | 1.25x | 1.28x | 1.28x | 1.30x | |||||||||
| PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY | |||||||||||||||||
| Net Interest Margin Analysis | |||||||||||||||||
| Average Year to Date Balances | |||||||||||||||||
| (Dollars in Thousands) (Unaudited) | |||||||||||||||||
| September 30, 2024 | September 30, 2023 | ||||||||||||||||
| Average | Average | Average | Average | ||||||||||||||
| Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost | ||||||||||||
| Interest-Earning Assets: | |||||||||||||||||
| Deposits | $ | 39,280 | $ | 5,466 | 5.38 | % | $ | 69,696 | $ | 2,676 | 5.13 | % | |||||
| Federal funds sold and other short term investments | — | — | — | % | 58 | 2 | 5.34 | % | |||||||||
| Available for sale debt securities | 2,189,671 | 52,553 | 3.19 | % | 1,777,861 | 30,819 | 2.31 | % | |||||||||
| Held to maturity debt securities, net (1) | 350,529 | 6,761 | 2.57 | % | 379,144 | 7,059 | 2.48 | % | |||||||||
| Equity securities, at fair value | 10,050 | — | — | % | 1,022 | — | — | % | |||||||||
| Federal Home Loan Bank stock | 84,845 | 6,145 | 9.66 | % | 77,634 | 3,929 | 6.75 | % | |||||||||
| Net loans: (2) | |||||||||||||||||
| Total mortgage loans | 10,682,974 | 461,632 | 5.70 | % | 7,740,591 | 299,830 | 5.12 | % | |||||||||
| Total commercial loans | 3,487,600 | 175,815 | 6.69 | % | 2,225,725 | 93,915 | 5.60 | % | |||||||||
| Total consumer loans | 460,497 | 25,820 | 7.49 | % | 302,706 | 13,419 | 5.93 | % | |||||||||
| Total net loans | 14,631,071 | 663,267 | 5.99 | % | 10,269,022 | 407,164 | 5.25 | % | |||||||||
| Total interest-earning assets | $ | 17,305,446 | $ | 734,192 | 5.61 | % | $ | 12,574,437 | $ | 451,649 | 4.76 | % | |||||
| Non-Interest Earning Assets: | |||||||||||||||||
| Cash and due from banks | 229,336 | 121,801 | |||||||||||||||
| Other assets | 1,663,331 | 1,152,113 | |||||||||||||||
| Total assets | $ | 19,198,113 | $ | 13,848,351 | |||||||||||||
| Interest-Bearing Liabilities: | |||||||||||||||||
| Demand deposits | $ | 7,931,251 | $ | 174,609 | 2.94 | % | $ | 5,710,855 | $ | 85,822 | 2.01 | % | |||||
| Savings deposits | 1,444,135 | 2,476 | 0.23 | % | 1,315,157 | 1,582 | 0.16 | % | |||||||||
| Time deposits | 2,091,806 | 66,517 | 4.25 | % | 961,010 | 21,476 | 2.99 | % | |||||||||
| Total deposits | 11,467,192 | 243,602 | 2.84 | % | 7,987,022 | 108,880 | 1.82 | % | |||||||||
| Borrowed funds | 2,074,958 | 57,871 | 3.73 | % | 1,556,619 | 38,329 | 3.29 | % | |||||||||
| Subordinated debentures | 215,745 | 13,842 | 8.57 | % | 10,563 | 774 | 9.80 | % | |||||||||
| Total interest-bearing liabilities | $ | 13,757,895 | $ | 315,315 | 3.06 | % | $ | 9,554,204 | $ | 147,983 | 2.07 | % | |||||
| Non-Interest Bearing Liabilities: | |||||||||||||||||
| Non-interest bearing deposits | 2,896,453 | 2,382,144 | |||||||||||||||
| Other non-interest bearing liabilities | 379,909 | 266,910 | |||||||||||||||
| Total non-interest bearing liabilities | 3,276,362 | 2,649,054 | |||||||||||||||
| Total liabilities | 17,034,257 | 12,203,258 | |||||||||||||||
| Stockholders' equity | 2,163,856 | 1,645,093 | |||||||||||||||
| Total liabilities and stockholders' equity | $ | 19,198,113 | $ | 13,848,351 | |||||||||||||
| Net interest income | $ | 418,877 | $ | 303,666 | |||||||||||||
| Net interest rate spread | 2.55 | % | 2.69 | % | |||||||||||||
| Net interest-earning assets | $ | 3,547,551 | $ | 3,020,233 | |||||||||||||
| Net interest margin (3) | 3.18 | % | 3.19 | % | |||||||||||||
| Ratio of interest-earning assets to total interest-bearing liabilities | 1.26x | 1.32x | |||||||||||||||
| (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. | |||||||||
| Nine Months Ended | |||||||||
| September 30, 2024 | September 30, 2023 | September 23, 2022 | |||||||
| Interest-Earning Assets: | |||||||||
| Securities | 3.33 | % | 2.57 | % | 1.72 | % | |||
| Net loans | 5.99 | % | 5.25 | % | 4.01 | % | |||
| Total interest-earning assets | 5.61 | % | 4.76 | % | 3.51 | % | |||
| Interest-Bearing Liabilities: | |||||||||
| Total deposits | 2.84 | % | 1.82 | % | 0.33 | % | |||
| Total borrowings | 3.73 | % | 3.29 | % | 0.97 | % | |||
| Total interest-bearing liabilities | 3.06 | % | 2.07 | % | 0.38 | % | |||
| Interest rate spread | 2.55 | % | 2.69 | % | 3.13 | % | |||
| Net interest margin | 3.18 | % | 3.19 | % | 3.24 | % | |||
| Ratio of interest-earning assets to interest-bearing liabilities | 1.26x | 1.32x | 1.38x | ||||||
SOURCE: Provident Financial Services, Inc.
CONTACT: Investor Relations, 1-732-590-9300 Web Site: http://www.Provident.Bank
FAQ
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