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EX - 99.1 2 a033121earningsrelease.htm EX - 99.1 Provident Financial Services , Inc. Announces First Quarter Earnings and Declares Quarterly Cash Dividend ISELIN , NJ , April 30 , 2021 - Provident Financial Services , Inc. ( NYSE : PFS ) ( the “ Company ” ) reported net income of $ 48.6 million , or $ 0.63 per basic and diluted share , for the three months ended March 31 , 2021 , compared to net income of $ 14.9 million , or $ 0.23 per basic and diluted share , for the three months ended March 31 , 2020 . Earnings for the quarter were aided by an improved economic outlook and resulting lower allowance for credit loss requirements , as well as additional earnings attributable to the July 31 , 2020 acquisition of SB One Bancorp ( " SB One " ) . For the three months ended March 31 , 2021 , the Company recorded a negative provision for credit losses on loans of $ 15.0 million and a negative provision for off - balance sheet credit exposures of $ 875,000 . Christopher Martin , Chairman and Chief Executive Officer commented : “ Provident's first quarter reflects a solid start for 2021 as we continue to leverage the benefits of last year's acquisition of SB One . Consistent with the positive economic outlook , our asset quality continued to improve , resulting in a credit loss reserve release this quarter . Our attentive management of funding costs paid - off as our net interest margin increased six basis points in the quarter . " Martin added , " We believe that with our talented team and their focus on delivering a superior customer experience , we are well positioned to capitalize on the growth opportunities emanating from the anticipated acceleration of the economic recovery . " Declaration of Quarterly Dividend The Company's Board of Directors declared a quarterly cash dividend of $ 0.23 per common share payable on May 28 , 2021 , to stockholders of record as of the close of business on May 14 , 2021 . Balance Sheet Summary Total assets at March 31 , 2021 were $ 13.13 billion , a $ 210.7 million increase from December 31 , 2020. The increase in total assets was primarily due to a $ 155.2 million increase in cash and cash equivalents and a $ 97.9 million increase in total investments . The loan portfolio decreased $ 19.4 million from December 31 , 2020 to $ 9.80 billion at March 31 , 2021 , despite strong originations , as prepayments , including Paycheck Protection Program ( " PPP " ) loan forgiveness , were elevated . For the three months ended March 31 , 2021 , loan originations , including advances on lines of credit , totaled $ 770.5 million , compared with $ 678.3 million for the same period in 2020. During the quarter ended March 31 , 2021 , the Company originated $ 190.1 million of loans under the current round of the PPP . Total PPP loans outstanding increased to $ 486.6 million at March 31 , 2021 , from $ 473.2 million at December 31 , 2020. In addition to net growth in PPP loans , the Company saw net growth in commercial real estate and construction loans during the three months ended March 31 , 2021 , with all other loan categories decreasing . Commercial real estate , commercial and construction loans represented 83.3 % of the loan portfolio at March 31 , 2021 , compared to 81.8 % at December 31 , 2020 . At March 31 , 2021 , the Company's unfunded loan commitments totaled $ 1.98 billion , including commitments of $ 891.6 million in commercial loans , $ 669.8 million in construction loans and $ 113.9 million in commercial mortgage loans . Unfunded loan commitments at December 31 , 2020 and March 31 , 2020 were $ 1.99 billion and $ 1.23 billion , respectively . The loan pipeline , consisting of work - in - process and loans approved pending closing , totaled $ 1.30 billion at March 31 , 2021 , compared to $ 1.23 billion and $ 1.33 billion at December 31 , 2020 and March 31 , 2020 , respectively . Cash and cash equivalents were $ 687.6 million at March 31 , 2021 , a $ 155.2 million increase from December 31 , 2020 , due to net deposit inflows and loan repayments , largely attributable to government stimulus programs , proceeds from the forgiveness of PPP loans and a seasonal increase in municipal deposits . 1