Provident Financial Services, Inc. Announces First Quarter Earnings

ISELIN, N.J., April 29, 2026 (GLOBE NEWSWIRE) -- Provident Financial Services, Inc. (NYSE:PFS) (the "Company") reported net income of $79.4 million, or $0.61 per basic and diluted share for the three months ended March 31, 2026, compared to $83.4 million, or $0.64 per basic and diluted share, for the three months ended December 31, 2025 and $64.0 million, or $0.49 per basic and diluted share, for the three months ended March 31, 2025. Net income for the three months ended March 31, 2026 was positively impacted by pre-provision, net revenue growth of 13.5%, or $12.9 million, when compared to the three months ended March 31, 2025, driven primarily by expanding net interest income and higher insurance agency income. Net income in the current quarter also benefited from a $2.1 million recapture of previous provisions for credit losses.

Anthony J. Labozzetta, President and Chief Executive Officer commented, "Provident delivered another strong quarter of financial performance, demonstrating the continued momentum in our business and the effectiveness of our strategic initiatives. Pre-provision, net revenue grew 13.5% year-over-year, driven by strong loan growth, modest margin expansion, and notable growth in insurance agency income. The bank's loan pipeline of $3.1 billion sits at record levels, and we remain optimistic about continued earnings per share growth and compounding of tangible book value moving forward."

Performance Highlights for the First Quarter of 2026

• The Company's annualized adjusted returns on average assets, average equity and average tangible equity⁽¹⁾ were 1.29%, 11.21% and 16.58% for the quarter ended March 31, 2026, compared to 1.34%, 11.78% and 17.58% for the quarter ended December 31, 2025. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 11 of the earnings release.
• The Company's annualized adjusted pre-provision, net-revenue returns on average assets, average equity and average tangible equity⁽²⁾ were 1.75%, 15.25% and 20.93% for the quarter ended March 31, 2026, compared to 1.78%, 15.68% and 21.78% for the quarter ended December 31, 2025. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 11 of the earnings release.
• The Company reported revenue of $225.2 million for the quarter ended March 31, 2026, comprised of net interest income of $193.7 million and record non-interest income of $31.5 million, compared to revenue of $225.7 million for the prior quarter and $208.8 million for the first quarter of 2025.
• Average interest-earning assets increased $264.1 million, or an annualized 4.70%, for the quarter ended March 31, 2026, versus the trailing quarter.
• The Company's total commercial and industrial ("C&I") loan portfolio, excluding mortgage warehouse lines, increased $123.1 million, or 10.3% annualized, to $4.97 billion as of March 31, 2026, from $4.84 billion as of December 31, 2025. Additionally, the Company's total commercial loan portfolio, including mortgage warehouse lines, commercial mortgage, multi-family and construction loans, increased $161.2 million, or 3.9% annualized, to $17.09 billion as of March 31, 2026, from $16.93 billion as of December 31, 2025.
• The net interest margin decreased four basis points to 3.40% for the quarter ended March 31, 2026, from 3.44% for the trailing quarter, while the core net interest margin, which excludes the impact of purchase accounting accretion and amortization, increased three basis points from the trailing quarter to 3.04%. The average yield on total loans decreased 13 basis points to 5.85% for the quarter ended March 31, 2026, compared to the trailing quarter, while the average cost of deposits, including non-interest-bearing deposits, decreased 16 basis points to 1.94% for the quarter ended March 31, 2026.
• The Company's loan-to-deposit ratio increased slightly to 102.9% as of March 31, 2026, compared to 101.2% as of December 31, 2025. The primary reasons for the increase in the loan-to-deposit ratio were seasonal municipal deposit outflow and a reduction in brokered deposits. Total non-maturity core business and consumer deposits increased $66.5 million or 2.2% annualized, to $12.40 billion as of March 31, 2026, from $12.33 billion as of December 31, 2025.
• The Company recorded a $2.1 million recapture of previous provisions for credit losses, which included a $4.7 million recapture of provision on loans, partially offset by a $2.5 million provision related to off-balance sheet credit exposures for the quarter ended March 31, 2026. Additionally, total net charge-offs of $3.1 million for the quarter represented an annualized 6 basis points of average loans. The allowance for credit losses as a percentage of loans decreased to 0.90% as of March 31, 2026, from 0.95% as of December 31, 2025.
• Insurance agency revenue increased $1.2 million or 21.2%, versus the same period in 2025, while pre-tax insurance agency net income increased $424,000 or 14.7% versus the same period in 2025. Wealth management revenues were up modestly year-over-year to $7.4 million, with AUM increasing slightly during that time period to $4.16 billion.
• As of March 31, 2026, the Company's loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $3.11 billion, with a weighted average interest rate of 6.24%.
• Non-performing loans to total loans as of March 31, 2026 increased to 0.73% from 0.40% as of December 31, 2025, while non-performing assets to total assets as of March 31, 2026 increased to 0.58% from 0.32% as of December 31, 2025. The $64.5 million increase in non-performing loans as of March 31, 2026, compared to the trailing quarter, was primarily driven by the addition of four commercial loans on senior housing properties totaling $82.1 million that are the subject of related bankruptcy filings, partially offset by payoffs. These loans have no prior charge-off history and require no specific reserve allocations due to strong collateral values. Appraisals received in 2026 reflect loan-to-value ratios for the collateral properties of 32.9%, 51.7%, 61.3%, and 81.9%.
• Tangible book value per share⁽³⁾ increased 2.1% to $16.03 and our tangible common equity ratio⁽³⁾ increased seven basis points to 8.55% as of March 31, 2026. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 11 of the earnings release.
• Common stock repurchases totaled $12.4 million, or 588,923 shares at an average cost of $21.04 per share, for the three months ended March 31, 2026.
  
  
  
  

Results of Operations

Three months ended March 31, 2026 compared to the three months ended December 31, 2025

For the three months ended March 31, 2026, net income was $79.4 million, or $0.61 per basic and diluted share, compared to net income of $83.4 million, or $0.64 per basic and diluted share, for the three months ended December 31, 2025.

Net Interest Income and Net Interest Margin

Net interest income was $193.7 million for the three months ended March 31, 2026, compared to $197.4 million for the trailing quarter. The decrease in net interest income reflected two fewer calendar days in the first quarter, combined with a decrease in accelerated accretion related to pay-offs and pay-downs of loans acquired in the Lakeland merger, partially offset by favorable repricing of deposits.

The Company's net interest margin decreased four basis points to 3.40% for the quarter ended March 31, 2026, from 3.44% for the trailing quarter. The weighted average yield on interest-earning assets for the quarter ended March 31, 2026 decreased 13 basis points to 5.53%, compared to the trailing quarter. The weighted average cost of interest-bearing liabilities for the quarter ended March 31, 2026 decreased 12 basis points from the trailing quarter to 2.71%. The average cost of interest-bearing deposits for the quarter ended March 31, 2026 decreased 21 basis points to 2.39%, compared to 2.60% for the trailing quarter. The average cost of total deposits, including non-interest-bearing deposits, was 1.94% for the quarter ended March 31, 2026, compared to 2.10% for the trailing quarter. The average cost of borrowed funds for the quarter ended March 31, 2026 was 3.90%, compared to 3.94% for the quarter ended December 31, 2025.

Provision for Credit Losses

For the quarter ended March 31, 2026, the Company recorded a $2.1 million recapture of previous provisions for credit losses compared to a $1.2 million recapture of previous provisions for credit losses for the trailing quarter. The recapture of provision in the current quarter consisted of a $4.7 million recapture of provision related to loans, partially offset by a $2.5 million provision related to off-balance sheet credit exposures, compared with a provision for credit losses on loans of $2.0 million and a $3.2 million recapture of provision related to off-balance sheet credit exposures, respectively, for the quarter ended December 31, 2025. The recapture of the provision for credit losses on loans in the quarter was primarily due to a reduction in specific reserves on individually evaluated loans. For the three months ended March 31, 2026, net charge-offs totaled $3.1 million, or an annualized 6 basis points of average loans, compared with net charge-offs of $4.2 million, or an annualized 9 basis points of average loans, for the trailing quarter.

Non-Interest Income and Expense

For the three months ended March 31, 2026, non-interest income totaled $31.5 million, an increase of $3.1 million, compared to the trailing quarter. Insurance agency income increased $3.0 million to $6.9 million for the three months ended March 31, 2026, compared to the trailing quarter, mainly due to the receipt of contingent commissions and additional business in the current quarter. BOLI income increased $1.2 million for the three months ended March 31, 2026, compared to the trailing quarter, primarily due to an increase in benefit claims, partially offset by a decrease in equity valuations. Additionally, other income increased $453,000 to $2.7 million for the three months ended March 31, 2026, compared to the trailing quarter, primarily due to an increase in profit on fixed asset sales, partially offset by a decrease in net fees on loan-level interest rate swap transactions. Partially offsetting these increases to non-interest income, net gains on securities transactions decreased $690,000 for the three months ended March 31, 2026, compared to the trailing quarter, primarily due to prior quarter gains on calls of corporate securities, while fee income decreased $636,000 to $10.5 million for the three months ended March 31, 2026, compared to the trailing quarter.

Non-interest expense totaled $117.1 million for the three months ended March 31, 2026, an increase of $2.5 million, compared to $114.7 million for the trailing quarter. Compensation and benefits expense increased $1.9 million to $66.2 million for the three months ended March 31, 2026, compared to $64.3 million for the trailing quarter. The increase in compensation and benefits expense was primarily due to increases in salary expense related to company-wide annual merit increases and employer payroll tax expense, partially offset by decreases in the accrual for performance-based incentive and stock-based compensation. Additionally, net occupancy expense increased $1.9 million to $15.0 million for the three months ended March 31, 2026, compared to the trailing quarter, largely due to seasonal increases in snow removal, utilities and other maintenance costs. Partially offsetting these increases in non-interest expense, other operating expenses decreased $1.5 million to $14.0 million for the three months ended March 31, 2026, compared to $15.4 million for the trailing quarter, primarily due to decreases in legal and professional expenses.

The Company's annualized adjusted non-interest expense as a percentage of average assets⁽⁵⁾ totaled 1.90% for the quarter ended March 31, 2026, compared to 1.84% for the trailing quarter. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)⁽⁶⁾ was 52.02% for the three months ended March 31, 2026, compared to 50.97% for the trailing quarter.

Income Tax Expense

For the three months ended March 31, 2026, the Company's income tax expense was $30.8 million with an effective tax rate of 27.9%, compared with income tax expense of $28.8 million with an effective tax rate of 25.7% for the trailing quarter. The increase in tax expense and the effective tax rate for the three months ended March 31, 2026, compared with the trailing quarter, was largely due to the purchase of tax credits recognized in the prior quarter which reduced tax expense by $3.4 million, partially offset by a discrete item related to stock-based compensation in the current quarter.

Three months ended March 31, 2026 compared to the three months ended March 31, 2025

For the three months ended March 31, 2026, net income was $79.4 million, or $0.61 per basic and diluted share, compared to net income of $64.0 million, or $0.49 per basic and diluted share, for the three months ended March 31, 2025.

Net Interest Income and Net Interest Margin

Net interest income increased $12.0 million to $193.7 million for the three months ended March 31, 2026, from $181.7 million for same period in 2025. The increase in net interest income was primarily due to originations of new loans, combined with favorable repricing of deposits, partially offset by a decrease in lower-costing deposits.

The Company's net interest margin increased six basis points to 3.40% for the quarter ended March 31, 2026, from 3.34% for the same period last year. The weighted average yield on interest-earning assets for the quarter ended March 31, 2026 decreased 10 basis points to 5.53%, compared to 5.63% for the quarter ended March 31, 2025. The weighted average cost of interest-bearing liabilities decreased 19 basis points for the quarter ended March 31, 2026 to 2.71%, compared to 2.90% for the first quarter of 2025. The average cost of interest-bearing deposits for the quarter ended March 31, 2026 was 2.39%, compared to 2.64% for the same period last year. Average non-interest-bearing demand deposits decreased $74.6 million to $3.64 billion for the quarter ended March 31, 2026, compared to $3.72 billion for the quarter ended March 31, 2025. The average cost of total deposits, including non-interest-bearing deposits, was 1.94% for the quarter ended March 31, 2026, compared with 2.11% for the quarter ended March 31, 2025. The average cost of borrowed funds for the quarter ended March 31, 2026 was 3.90%, compared to 3.76% for the same period last year.

Provision for Credit Losses

For the quarter ended March 31, 2026, the Company recorded a $2.1 million recapture of previous provisions for credit losses compared to a $635,000 provision for credit losses for the first quarter of 2025. The recapture of provision consisted of a $4.7 million recapture of provision related to loans, partially offset by a $2.5 million provision related to off-balance sheet credit exposures, compared with provisions for credit losses on loans and off-balance sheet credit exposures of $325,000 and $310,000, respectively, for the quarter ended March 31, 2025. The recapture of the provision for credit losses on loans in the current quarter was primarily due to a reduction in specific reserves on individually evaluated loans. For the three months ended March 31, 2026, net charge-offs totaled $3.1 million, or an annualized 6 basis points of average loans, compared with net charge-offs of $2.0 million, or an annualized 4 basis points of average loans, for the same period last year.

Non-Interest Income and Expense

Non-interest income totaled $31.5 million for the quarter ended March 31, 2026, an increase of $4.4 million, compared to the same period in 2025. BOLI income increased $1.9 million to $4.0 million for the three months ended March 31, 2026, compared to the prior year quarter, primarily due to an increase in benefit claims. Insurance agency income increased $1.2 million to $6.9 million for the three months ended March 31, 2026, compared to the quarter ended March 31, 2025, largely due to an increase in contingency income and business activity. Fee income increased $809,000 to $10.5 million for the three months ended March 31, 2026, compared to the prior year quarter, primarily due to increases in deposit fee income and commercial loan prepayment fees. Additionally, other income increased $486,000 to $2.7 million for the three months ended March 31, 2026, compared to the quarter ended March 31, 2025, primarily due to an increase in net gains on the sale of SBA loans, combined with an increase in gain on fixed asset sales, partially offset by a decrease in net fees on loan-level interest rate swap transactions.

For the three months ended March 31, 2026, non-interest expense totaled $117.1 million, an increase of $874,000, compared to the three months ended March 31, 2025. Compensation and benefits expense increased $3.8 million to $66.2 million for three months ended March 31, 2026, compared to $62.4 million for the same period in 2025. The increase was primarily due to an increase in salary expense associated with Company-wide annual merit increases, combined with increases in employee medical benefits and stock-based compensation expenses. Net occupancy expense increased $1.1 million to $15.0 million for the three months ended March 31, 2025, compared to the same period in 2025, largely due to increases in snow removal, utilities and other maintenance costs. Partially offsetting these increases to non-interest expense, other operating expense decreased $2.5 million to $14.0 million for the three months ended March 31, 2026, compared to $16.4 million for the three months ended March 31, 2025, largely due to a $2.7 million write-down on a foreclosed property in the prior year. Additionally, amortization of intangibles decreased $938,000 to $8.6 million for the three months ended March 31, 2025, compared to $9.5 million for 2025, primarily due to a scheduled reduction in the rate of core deposit intangible amortization related to Lakeland, while FDIC insurance expense decreased $544,000 to $2.8 million for the three months ended March 31, 2026, compared to the same period in 2025, primarily due to a decrease in the assessment rate.

The Company's annualized adjusted non-interest expense as a percentage of average assets⁽⁵⁾ was 1.90% for the quarter ended March 31, 2026, compared to 1.92% for the same period in 2025. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)⁽⁶⁾ was 52.02% for the three months ended March 31, 2026 compared to 54.43% for the same respective period in 2025.

Income Tax Expense

For the three months ended March 31, 2026, the Company's income tax expense was $30.8 million with an effective tax rate of 27.9%, compared with $27.8 million with an effective tax rate of 30.3% for the three months ended March 31, 2025. The increase in tax expense for the three months ended March 31, 2026, compared with the same period last year, was largely due to an increase in pre-tax income, partially offset by a discrete item related to stock-based compensation. The decrease in the effective tax rate was primarily related to ongoing benefits from tax credits recognized in the current quarter, combined with the aforementioned discrete item related to stock-based compensation.

Asset Quality

The Company's total non-performing loans as of March 31, 2026 were $142.9 million, or 0.73% of total loans, compared $78.4 million, or 0.40% of total loans as of December 31, 2025 and $103.2 million, or 0.54% of total loans as of March 31, 2025. The $64.5 million increase in non-performing loans as of March 31, 2026, compared to the trailing quarter, was primarily driven by the addition of four commercial loans on senior housing properties totaling $82.1 million that are the subject of related bankruptcy filings, partially offset by payoffs. These loans have no prior charge-off history and require no specific reserve allocations due to strong collateral values. Appraisals received in 2026 reflect loan-to-value ratios for the collateral properties of 32.9%, 51.7%, 61.3%, and 81.9%. As of March 31, 2026, impaired loans totaled $128.4 million with related specific reserves of $1.6 million, compared with impaired loans totaling $63.3 million with related specific reserves of $5.9 million as of December 31, 2025. As of March 31, 2025, impaired loans totaled $86.1 million with related specific reserves of $7.9 million.

As of March 31, 2026, the Company's allowance for credit losses related to loans held for investment was 0.90% of total loans, compared to 0.95% and 1.02% as of December 31, 2025 and March 31, 2025, respectively. The allowance for credit losses decreased $7.8 million to $177.0 million as of March 31, 2026, from $184.8 million as of December 31, 2025. The decrease in the allowance for credit losses on loans at March 31, 2026 compared to December 31, 2025 was due to a $4.7 million recapture of previous provisions for credit losses, combined with net charge-offs of $3.1 million, of which $2.5 million had been previously reserved for.

The following table shows accruing past due loans and non-accrual loans on the dates indicated, as well as certain asset quality ratios.

		March 31, 2026						December 31, 2025						March 31, 2025
		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		4		$	2,665			8		$	15,652			8		$	13,696
Multi-family mortgage loans		1			694			—			—			1			7,433
Construction loans		1			6,639			—			—			—			—
Residential mortgage loans		25			5,123			34			8,344			27			6,905
Total mortgage loans		31			15,121			42			23,996			36			28,034
Commercial loans		22			10,359			9			1,303			37			12,422
Consumer loans		42			3,588			49			2,209			22			1,604
Total 30 to 59 days past due		95		$	29,068			100		$	27,508			95		$	42,060
60 to 89 days past due:
Commercial mortgage loans		—		$	—			—		$	—			2		$	196
Multi-family mortgage loans		—			—			1			932			—			—
Construction loans		—			—			—			—			—			—
Residential mortgage loans		22			6,893			16			4,177			18			5,009
Total mortgage loans		22			6,893			17			5,109			20			5,205
Commercial loans		6			2,520			3			633			15			2,849
Consumer loans		12			634			14			781			12			854
Total 60 to 89 days past due		40			10,047			34			6,523			47			8,908
Total accruing past due loans		135		$	39,115			134		$	34,031			142		$	50,968
Non-accrual:
Commercial mortgage loans		9		$	21,977			11		$	26,856			18		$	42,931
Multi-family mortgage loans		1			275			3			2,268			5			7,294
Construction loans		1			3,278			1			5,159			3			18,929
Residential mortgage loans		27			8,669			32			9,062			22			5,246
Total mortgage loans		38			34,199			47			43,345			48			74,400
Commercial loans		41			107,398			28			33,219			83			23,580
Consumer loans		23			1,327			27			1,856			19			1,352
Total non-accrual loans		102		$	142,924			102		$	78,420			150		$	99,332
Non-performing loans to total loans held for investment					0.73	%					0.40	%					0.53	%
Allowance for loan losses to total non-performing loans					123.84	%					235.61	%					185.78	%
Allowance for loan losses to total loans					0.90	%					0.95	%					1.02	%

There were no non-accrual or past due loans held for sale as of March 31, 2026. As of March 31, 2025, total non-accrual loans held for sale, which are not in the tables above, totaled $3.9 million. Additionally, as of March 31, 2025, total past due loans held for sale, including non-accrual loans held for sale, totaled $5.8 million.

As of March 31, 2026 and December 31, 2025, the Company held foreclosed assets of $2.0 million. Foreclosed assets as of March 31, 2026 were comprised of commercial real estate. Total non-performing assets as of March 31, 2026 increased $64.5 million to $144.9 million, or 0.58% of total assets, from $80.4 million, or 0.32% of total assets as of December 31, 2025.

Balance Sheet Summary

Total assets as of March 31, 2026 were $25.20 billion, a $221.0 million increase from December 31, 2025. The increase in total assets was primarily due to a $143.6 million increase in total loans and a $60.9 million increase in total investments.

The Company's loans held for investment portfolio totaled $19.65 billion as of March 31, 2026 and $19.50 billion as of December 31, 2025. The portfolio consisted of the following:

	March 31, 2026				December 31, 2025
	(Dollars in thousands)
Mortgage loans:
Commercial	$	7,423,652			$	7,398,792
Multi-family		3,724,236				3,667,337
Construction		640,929				662,112
Residential		1,960,861				1,974,324
Total mortgage loans		13,749,678				13,702,565
Commercial loans		4,966,608				4,843,466
Mortgage warehouse lines		334,505				357,051
Consumer loans		608,016				612,431
Total gross loans		19,658,807				19,515,513
Premiums on purchased loans		1,700				1,524
Net deferred fees and unearned discounts		(12,805	)			(12,976	)
Total loans	$	19,647,702			$	19,504,061

During the three months ended March 31, 2026, the loans held for investment portfolio had net increases of $123.1 million of commercial loans, $56.9 million of multi-family loans and $24.9 million of commercial mortgage loans, partially offset by net decreases of $22.5 million of mortgage warehouse lines, $21.2 million of construction loans and $13.5 million of residential mortgage loans. Total commercial loans, consisting of commercial real estate, multi-family, commercial and construction loans, as well as mortgage warehouse lines, represented 86.9% of the loan portfolio as of March 31, 2026, compared to 86.7% as of December 31, 2025.

For the three months ended March 31, 2026, loan funding, including advances on lines of credit, totaled $2.42 billion, compared with $1.93 billion for the same period in 2025.

As of March 31, 2026, the Company's unfunded loan commitments totaled $3.96 billion, including commitments of $2.49 billion in commercial loans, $599.4 million in construction loans and $147.8 million in commercial mortgage loans. Unfunded loan commitments as of December 31, 2025 and March 31, 2025 were $3.71 billion and $2.88 billion, respectively.

The loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $3.11 billion as of March 31, 2026, compared to $2.74 billion and $2.77 billion as of December 31, 2025 and March 31, 2025, respectively.

Total investment securities were $3.53 billion as of March 31, 2026, a $60.9 million increase from December 31, 2025. This increase was primarily due to purchases of mortgage-backed securities and a decrease in unrealized losses on available for sale debt securities.

Total deposits decreased $178.4 million during the three months ended March 31, 2026, to $19.10 billion. Total savings and demand deposit accounts decreased $80.7 million to $15.91 billion as of March 31, 2026, while total time deposits decreased $97.7 million to $3.19 billion as of March 31, 2026. The decrease in savings and demand deposits consisted of a $147.2 decrease in municipal deposits and a $42.8 million decrease in interest bearing brokered deposits, partially offset a $53.4 million increase in money market deposits, a $12.4 million increase in savings deposits and a $2.3 million increase in non-interest-bearing demand deposits. The decrease in municipal deposits was mainly due to seasonal outflows. The decrease in time deposits consisted of an $82.5 million decrease in brokered time deposits, combined with a $15.2 million decrease in retail time deposits.

Borrowed funds increased $371.0 million during the three months ended March 31, 2026, to $2.48 billion. The increase in borrowings was largely used to fund seasonal outflows in municipal deposits and replace maturing brokered deposits. Borrowed funds represented 9.9% of total assets as of March 31, 2026, an increase from 8.5% as of December 31, 2025.

Stockholders' equity increased $29.7 million during the three months ended March 31, 2026, to $2.86 billion, primarily due to net income earned for the period and a decrease in unrealized losses on available for sale debt securities, partially offset by cash dividends paid to stockholders and common stock repurchases. For the three months ended March 31, 2026, common stock repurchases totaled 588,923 shares at an average cost of $21.04 per share, of which 100,381 shares at an average cost of $21.29 were made in connection with withholding to cover income taxes on the vesting of stock-based compensation. As of March 31, 2026, approximately $2.2 million shares remained eligible for repurchase under the current authorization. Book value per share and tangible book value per share⁽³⁾ as of March 31, 2026 were $21.97 and $16.03, respectively, compared with $21.69 and $15.70, respectively, as of December 31, 2025.

About the Company

Provident Financial Services, Inc. is the holding company for Provident Bank, a community-oriented bank offering "Commitment you can count on" since 1839. Provident Bank provides a comprehensive array of financial products and services through its network of branches throughout New Jersey, Bucks, Lehigh and Northampton counties in Pennsylvania, as well as Orange, Queens and Nassau Counties in New York. The Bank also provides fiduciary and wealth management services through its wholly owned subsidiary, Beacon Trust Company and insurance services through its wholly owned subsidiary, Provident Protection Plus, Inc.

Post Earnings Conference Call

Representatives of the Company will hold a conference call for investors on Thursday, April 30, 2026 at 10:00 a.m. Eastern Time to discuss the Company's financial results for the quarter ended March 31, 2026. The call may be accessed by dialing 1-888-412-4131 (United States Toll Free) and 1-646-960-0134 (United States Local). Speakers will need to enter conference ID code (3610756) before being met by a live operator. Internet access to the call is also available (listen only) at provident.bank by going to Investor Relations and clicking on "Webcast."

A supplemental 1st Quarter 2026 results investor presentation is also available on our investor relations website under "Presentations."

Forward Looking Statements

Certain statements contained herein are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as "may," "will," "believe," "expect," "estimate," "project," "intend," "anticipate," "continue," or similar terms or variations on those terms, or the negative of those terms. Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those set forth in Item 1A of the Company's Annual Report on Form 10-K, as supplemented by its Quarterly Reports on Form 10-Q, and those related to the economic environment, particularly in the market areas in which the Company operates, inflation and unemployment, competitive products and pricing, real estate values, fiscal and monetary policies of the U.S. Government, tariffs, 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 and the availability of and costs associated with sources of liquidity.

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-provision, net-revenue return on average assets, annualized return on average tangible equity, tangible common equity capital ratio, tangible book value per share, annualized adjusted non-interest expense as a percentage of average assets and the efficiency ratio are non-GAAP financial measures. Please refer to the Notes following the Consolidated Financial Highlights which contain the reconciliation of GAAP to non-GAAP financial measures and the associated calculations.

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Financial Highlights
(Dollars in Thousands, except share data) (Unaudited)
	As of or for the Three months ended
	March 31,				December 31,				March 31,
		2026				2025				2025
Statement of Income
Net interest income	$	193,743			$	197,411			$	181,728
Provision for credit losses		(2,116	)			(1,213	)			638
Non-interest income		31,453				28,311				27,030
Non-interest expense		117,141				114,690				116,267
Income before income tax expense		110,171				112,245				91,853
Net income		79,417				83,431				64,028
Diluted earnings per share	$	0.61			$	0.64			$	0.49
Interest rate spread		2.82	%			2.83	%			2.73	%
Net interest margin		3.40	%			3.44	%			3.34	%
Profitability
Annualized return on average assets		1.29	%			1.34	%			1.08	%
Annualized adjusted return on average assets(1)		1.29	%			1.34	%			1.11	%
Annualized return on average equity		11.21	%			11.78	%			9.84	%
Annualized adjusted return on average equity(1)		11.21	%			11.78	%			10.13	%
Annualized return on average tangible equity(1)		16.58	%			17.58	%			15.73	%
Annualized adjusted return on average tangible equity(1)		16.58	%			17.58	%			16.15	%
Annualized adjusted non-interest expense to average assets(3)		1.90	%			1.84	%			1.92	%
Efficiency ratio(4)		52.02	%			50.97	%			54.43	%
Asset Quality
Non-accrual loans	$	142,924			$	78,420			$	103,224
90+ and still accruing		—				—				—
Non-performing loans		142,924				78,420				103,224
Foreclosed assets		2,015				2,015				6,755
Non-performing assets		144,939				80,435				109,979
Non-performing loans to total loans		0.73	%			0.40	%			0.54	%
Non-performing assets to total assets		0.58	%			0.32	%			0.45	%
Allowance for loan losses	$	176,997			$	184,767			$	191,770
Allowance for loan losses to total non-performing loans		123.84	%			235.61	%			185.78	%
Allowance for loan losses to total loans		0.90	%			0.95	%			1.02	%
Net loan charge-offs	$	3,120			$	4,152			$	1,987
Annualized net loan charge-offs to average total loans		0.06	%			0.09	%			0.04	%
Average Balance Sheet Data
Assets	$	25,026,414			$	24,775,214			$	24,049,318
Loans, net		19,354,543				19,149,055				18,590,877
Earning assets		23,062,832				22,798,735				21,946,053
Core deposits		16,010,204				16,291,161				15,497,343
Borrowings		2,184,719				1,531,419				1,918,069
Interest-bearing liabilities		18,188,298				17,867,637				17,297,892
Stockholders' equity		2,873,113				2,810,166				2,638,361
Average yield on interest-earning assets		5.53	%			5.66	%			5.63	%
Average cost of interest-bearing liabilities		2.71	%			2.83	%			2.90	%

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
		March 31,				December 31,				March 31,
			2026				2025				2025
Net Income		$	79,417			$	83,431			$	64,028
Write-down on ORE property			—				—				2,690
Less: income tax expense			—				—				(809	)
Annualized adjusted net income		$	79,417			$	83,431			$	65,909
Plus: Amortization of Intangibles (net of tax)		$	6,170			$	6,180			$	6,642
Annualized adjusted net income for annualized adjusted return on average tangible equity		$	85,587			$	89,611			$	72,551
Average assets		$	25,026,414			$	24,775,214			$	24,049,318
Average equity		$	2,873,113			$	2,810,166			$	2,638,361
Average tangible equity		$	2,093,975			$	2,022,451			$	1,822,407
Annualized Adjusted Return on Average Assets			1.29	%			1.34	%			1.11	%
Annualized Adjusted Return on Average Equity			11.21	%			11.78	%			10.13	%
Annualized Adjusted Return on Average Tangible Equity			16.58	%			17.58	%			16.15	%
(2) Annualized adjusted pre-provision, net-revenue ("PPNR") returns on average assets, average equity and average tangible equity
		Three Months Ended
		March 31,				December 31,				March 31,
			2026				2025				2025
Net income		$	79,417			$	83,431			$	64,028
Adjustments to net income:
Provision (release) charge for credit losses			(2,116	)			(1,213	)			638
Write-down on ORE property			—				—				2,690
Income tax expense			30,754				28,814				27,825
PPNR income		$	108,055			$	111,032			$	95,181
Annualized adjusted PPNR income		$	438,223			$	440,507			$	386,012
Average assets		$	25,026,414			$	24,775,214			$	24,049,318
Average equity		$	2,873,113			$	2,810,166			$	2,638,361
Average tangible equity		$	2,093,975			$	2,022,451			$	1,822,407
Annualized adjusted PPNR return on average assets			1.75	%			1.78	%			1.61	%
Annualized adjusted PPNR return on average equity			15.25	%			15.68	%			14.63	%
Annualized adjusted PPNR return on average tangible equity			20.93	%			21.78	%			21.18	%
(3) Tangible Common Equity Ratio, Book and Tangible Book Value per Share		Three Months Ended
		March 31,				December 31,				March 31,
			2026				2025				2025
Total assets		$	25,201,690			$	24,980,710			$	24,224,759
Less: total intangible assets			773,585				782,152				809,725
Total tangible assets		$	24,428,105			$	24,198,558			$	23,415,034
Total stockholders' equity		$	2,862,869			$	2,833,212			$	2,658,794
Less: total intangible assets			773,585				782,152				809,725
Total tangible stockholders' equity		$	2,089,284			$	2,051,060			$	1,849,069
Tangible common equity ratio			8.55	%			8.48	%			7.90	%
Shares outstanding			130,311,796				130,619,949				130,661,195
Book value per share (total stockholders' equity/shares outstanding)		$	21.97			$	21.69			$	20.35
Tangible book value per share (total tangible stockholders' equity/shares outstanding)		$	16.03			$	15.70			$	14.15
(4) Annualized Return on Average Tangible Equity
		Three Months Ended
		March 31,				December 31,				March 31,
			2026				2025				2025
Total average stockholders' equity		$	2,873,113			$	2,810,166			$	2,638,361
Less: total average intangible assets			779,138				787,715				815,954
Total average tangible stockholders' equity		$	2,093,975			$	2,022,451			$	1,822,407
Net income			79,417				83,431				64,028
Plus: Amortization of Intangibles, net of tax			6,170				6,180				6,642
Total adjusted net income		$	85,587			$	89,611			$	70,670
Annualized return on average tangible equity (net income/total average tangible stockholders' equity)			16.58	%			17.58	%			15.73	%
(5) Annualized Adjusted Non-Interest Expense to Average Assets
		Three Months Ended
		March 31,				December 31,				March 31,
			2026				2025				2025
Reported non-interest expense		$	117,141			$	114,690			$	116,267
Adjustments to non-interest expense:
Write-down on ORE property			—				—				2,690
Adjusted non-interest expense		$	117,141			$	114,690			$	113,577
Annualized adjusted non-interest expense		$	475,072			$	455,020			$	460,618
Average assets		$	25,026,414			$	24,775,214			$	24,049,318
Annualized adjusted non-interest expense/average assets			1.90	%			1.84	%			1.92	%
(6) Efficiency Ratio Calculation
		Three Months Ended
		March 31,				December 31,				March 31,
			2026				2025				2025
Net interest income		$	193,743			$	197,411			$	181,728
Non-interest income			31,453				28,311				27,030
Adjustments to non-interest income:
Net gain on securities transactions			—				(690	)			(87	)
Adjusted non-interest income		$	31,453			$	27,621			$	26,943
Total income		$	225,196			$	225,032			$	208,671
Adjusted non-interest expense		$	117,141			$	114,690			$	113,577
Efficiency ratio (adjusted non-interest expense/income)			52.02	%			50.97	%			54.43	%

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Financial Condition
March 31, 2026 (Unaudited) and December 31, 2025
(Dollars in Thousands)
Assets	March 31, 2026				December 31, 2025
Cash and cash equivalents	$	222,083			$	211,484
Available for sale debt securities, at fair value		3,240,067				3,164,756
Held to maturity debt securities, (net of $15,000 allowance as of March 31, 2026 (unaudited) and $16,000 allowance as of December 31, 2025)		267,653				282,127
Equity securities, at fair value		19,893				19,875
Federal Home Loan Bank stock		132,510				115,687
Loans held for sale		7,516				14,710
Loans held for investment		19,647,702				19,504,061
Less allowance for credit losses		176,997				184,767
Net loans		19,478,221				19,334,004
Foreclosed assets, net		2,015				2,015
Banking premises and equipment, net		110,356				113,328
Accrued interest receivable		97,726				95,798
Intangible assets		773,585				782,152
Bank-owned life insurance		413,337				414,371
Other assets		444,244				445,113
Total assets	$	25,201,690			$	24,980,710
Liabilities and Stockholders' Equity
Deposits:
Demand deposits	$	14,286,558			$	14,402,148
Savings deposits		1,624,122				1,589,259
Certificates of deposit of $250,000 or more		942,746				929,989
Other time deposits		2,246,876				2,357,287
Total deposits		19,100,302				19,278,683
Mortgage escrow deposits		48,310				40,253
Borrowed funds		2,482,979				2,111,955
Subordinated debentures		407,824				406,582
Other liabilities		299,406				310,025
Total liabilities		22,338,821				22,147,498
Stockholders' equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued		—				—
Common stock, $0.01 par value, 200,000,000 shares authorized, 137,565,966 shares issued and 130,311,796 shares outstanding as of March 31, 2026 and 130,619,949 outstanding as of December 31, 2025.		1,376				1,376
Additional paid-in capital		1,847,737				1,844,949
Retained earnings		1,202,413				1,154,364
Accumulated other comprehensive loss		(86,423	)			(76,183	)
Treasury stock		(102,234	)			(91,294	)
Total stockholders' equity		2,862,869				2,833,212
Total liabilities and stockholders' equity	$	25,201,690			$	24,980,710

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Income
Three months ended March 31, 2026, December 31, 2025 and March 31, 2025
(Dollars in Thousands, except per share data) (Unaudited)
	Three Months Ended
	March 31,				December 31,				March 31,
		2026				2025			2025
Interest and dividend income:
Real estate secured loans	$	191,503			$	196,082			$	187,054
Commercial loans		77,901				81,652				75,819
Consumer loans		9,900				10,504				10,158
Available for sale debt securities, equity securities and Federal Home Loan Bank stock		33,282				33,981				29,644
Held to maturity debt securities		1,794				1,835				1,996
Deposits, federal funds sold and other short-term investments		686				785				675
Total interest income		315,066				324,839				305,346
Interest expense:
Deposits		91,936				104,232				97,420
Borrowed funds		21,011				15,199				17,778
Subordinated debt		8,376				7,997				8,420
Total interest expense		121,323				127,428				123,618
Net interest income		193,743				197,411				181,728
Provision for credit losses		(2,116	)			(1,213	)			638
Net interest income after provision for credit losses		195,859				198,624				181,090
Non-interest income:
Fees		10,464				11,100				9,655
Wealth management income		7,402				7,627				7,328
Insurance agency income		6,850				3,854				5,651
Bank-owned life insurance		4,034				2,790				2,092
Net gain on securities transactions		—				690				87
Other income		2,703				2,250				2,217
Total non-interest income		31,453				28,311				27,030
Non-interest expense:
Compensation and employee benefits		66,196				64,316				62,366
Net occupancy expense		14,985				13,078				13,927
Data processing expense		9,646				9,110				9,605
FDIC Insurance		2,841				2,758				3,385
Amortization of intangibles		8,563				8,578				9,501
Advertising and promotion expense		938				1,406				1,060
Other operating expenses		13,972				15,444				16,423
Total non-interest expense		117,141				114,690				116,267
Income before income tax expense		110,171				112,245				91,853
Income tax expense		30,754				28,814				27,825
Net income	$	79,417			$	83,431			$	64,028
Basic earnings per share	$	0.61			$	0.64			$	0.49
Average basic shares outstanding		130,511,676				130,530,391				130,325,393
Diluted earnings per share	$	0.61			$	0.64			$	0.49
Average diluted shares outstanding		130,588,635				130,589,271				130,380,475

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Quarterly Average Balances
(Dollars in Thousands) (Unaudited)
	March 31, 2026									December 31, 2025									March 31, 2025
	Average Balance			Interest			Average Yield/Cost			Average Balance			Interest			Average Yield/Cost			Average Balance			Interest			Average Yield/Cost
Interest-Earning Assets:
Deposits	$	76,589		$	686		3.63	%		$	90,490		$	785		3.44	%		$	80,074		$	675		4.21	%
Available for sale debt securities		3,217,568			31,458		3.91	%			3,161,753			31,622		4.00	%			2,827,699			27,485		3.89	%
Held to maturity debt securities, net(1)		273,845			1,794		2.62	%			287,635			1,835		2.55	%			320,036			1,996		2.50	%
Equity securities, at fair value		19,988			120		2.42	%			19,781			143		2.90	%			19,840			136		2.74	%
Total securities		3,511,401			33,372		3.80	%			3,469,169			33,600		3.87	%			3,167,575			29,617		3.74	%
Federal Home Loan Bank stock		120,299			1,704		5.67	%			90,021			2,216		9.76	%			107,527			2,023		7.53	%
Net loans:(2)
Total mortgage loans		13,590,636			191,503		5.70	%			13,501,084			196,082		5.77	%			13,297,168			187,054		5.70	%
Total commercial loans		5,157,785			77,901		6.13	%			5,036,657			81,652		6.43	%			4,684,572			75,819		6.56	%
Total consumer loans		606,122			9,900		6.62	%			611,314			10,504		6.82	%			609,137			10,158		6.76	%
Total net loans		19,354,543			279,304		5.85	%			19,149,055			288,238		5.98	%			18,590,877			273,031		5.95	%
Total interest-earning assets	$	23,062,832		$	315,066		5.53	%		$	22,798,735		$	324,839		5.66	%		$	21,946,053		$	305,346		5.63	%
Non-Interest Earning Assets:
Cash and due from banks		171,092									152,621									134,205
Other assets		1,792,490									1,823,858									1,969,060
Total assets	$	25,026,414								$	24,775,214								$	24,049,318
Interest-Bearing Liabilities:
Demand deposits	$	10,759,045		$	63,358		2.39	%		$	10,960,066		$	72,283		2.62	%		$	10,095,570		$	65,433		2.63	%
Savings deposits		1,606,554			840		0.21	%			1,585,837			889		0.22	%			1,682,596			924		0.22	%
Time deposits		3,230,961			27,738		3.48	%			3,384,538			31,060		3.64	%			3,199,620			31,063		3.94	%
Total Deposits		15,596,560			91,936		2.39	%			15,930,441			104,232		2.60	%			14,977,786			97,420		2.64	%
Borrowed funds		2,184,719			21,011		3.90	%			1,531,419			15,199		3.94	%			1,918,069			17,778		3.76	%
Subordinated debentures		407,019			8,376		8.35	%			405,777			7,997		7.82	%			402,037			8,420		8.49	%
Total interest-bearing liabilities		18,188,298			121,323		2.71	%			17,867,637			127,428		2.83	%			17,297,892			123,618		2.90	%
Non-Interest Bearing Liabilities:
Non-interest bearing deposits		3,644,605									3,745,258									3,719,177
Other non-interest bearing liabilities		320,398									352,153									393,888
Total non-interest bearing liabilities		3,965,003									4,097,411									4,113,065
Total liabilities		22,153,301									21,965,048									21,410,957
Stockholders' equity		2,873,113									2,810,166									2,638,361
Total liabilities and stockholders' equity	$	25,026,414								$	24,775,214								$	24,049,318
Net interest income				$	193,743								$	197,411								$	181,728
Net interest rate spread							2.82	%								2.83	%								2.73	%
Net interest-earning assets	$	4,874,534								$	4,931,098								$	4,648,161
Net interest margin(3)							3.40	%								3.44	%								3.34	%
Ratio of interest-earning assets to total interest-bearing liabilities	1.27x									1.28x									1.27x

(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 loans held for sale and non-accrual loans.
(3)		Annualized net interest income divided by average interest-earning assets.

The following table summarizes the quarterly net interest margin for the previous five quarters.
	3/31/26			12/31/25			9/30/25			6/30/25			3/31/25
	1st Qtr.			4th Qtr.			3rd Qtr.			2nd Qtr.			1st Qtr.
Interest-Earning Assets:
Securities	3.80	%		3.87	%		3.89	%		3.81	%		3.74	%
Net loans	5.85	%		5.98	%		6.09	%		6.01	%		5.95	%
Total interest-earning assets	5.53	%		5.66	%		5.76	%		5.68	%		5.63	%
Interest-Bearing Liabilities:
Total deposits	2.39	%		2.60	%		2.67	%		2.62	%		2.64	%
Total borrowings	3.90	%		3.94	%		3.96	%		3.94	%		3.76	%
Total interest-bearing liabilities	2.71	%		2.83	%		2.96	%		2.94	%		2.90	%
Interest rate spread	2.82	%		2.83	%		2.80	%		2.74	%		2.73	%
Net interest margin	3.40	%		3.44	%		3.43	%		3.36	%		3.34	%
Ratio of interest-earning assets to interest-bearing liabilities	1.27x			1.28x			1.27x			1.27x			1.27x

SOURCE: Provident Financial Services, Inc. 

CONTACT: Investor Relations, 1-732-590-9300 

Web Site: http://www.Provident.Bank