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EX - 99.1 2 a063021earningsrelease.htm EX - 99.1 Provident Financial Services , Inc. Announces Second Quarter Earnings and Declares Quarterly Cash Dividend ISELIN , NJ , July 30 , 2021 - Provident Financial Services , Inc. ( NYSE : PFS ) ( the “ Company ” ) reported net income of $ 44.8 million , or $ 0.58 per basic and diluted share , for the three months ended June 30 , 2021 , compared to net income of $ 14.3 million , or $ 0.22 per basic and diluted share , for the three months ended June 30 , 2020. For the six months ended June 30 , 2021 , the Company reported net income of $ 93.3 million , or $ 1.22 per basic and diluted share , compared to net income of $ 29.2 million , or $ 0.45 per basic and diluted share , for the same period last year . Earnings for the three and six months ended June 30 , 2021 were aided by improved economic conditions and resulting lower credit loss allowance requirements , and the additional earnings attributable to the addition of earning assets acquired in the July 31 , 2020 merger with SB One Bancorp ( " SB One " ) . For the three and six months ended June 30 , 2021 , the Company recorded negative provisions for credit losses on loans of $ 10.7 million and $ 25.7 million , respectively , compared with provisions of $ 10.9 million and $ 25.6 million for the respective 2020 periods . Christopher Martin , Chairman and Chief Executive Officer commented : “ Our second quarter results reflect record revenues and net interest income , including approximately $ 2.9 million in earnings associated with PPP loan forgiveness . We had strong growth in non - interest bearing deposits and our cost of deposits further improved . Despite strong loan originations , loan portfolio growth was negatively impacted by elevated loan repayments and PPP loan forgiveness , however our loan pipeline heading into the third quarter is very strong . " Martin added , “ We are taking a disciplined approach in deploying excess liquidity in investments to augment our margin . Asset quality continued to improve and remaining COVID - related loan payment deferrals are negligible . Operating expenses are well controlled as we continue to look to invest in new technologies to enhance the customer experience . " Declaration of Quarterly Dividend The Company's Board of Directors declared a quarterly cash dividend of $ 0.23 per common share payable on August 27 , 2021 , to stockholders of record as of the close of business on August 13 , 2021 . Balance Sheet Summary Total assets at June 30 , 2021 were $ 13.22 billion , a $ 297.2 million increase from December 31 , 2020. The increase in total assets was primarily due to a $ 415.9 million increase in total investments and a $ 177.8 million increase in cash and cash equivalents , partially offset by a $ 283.0 million decrease in total loans . The Company's loan portfolio decreased $ 283.0 million to $ 9.54 billion at June 30 , 2021 , from $ 9.82 billion at December 31 , 2020 , despite strong originations , as prepayments , including Paycheck Protection Program ( " PPP " ) loan forgiveness , were elevated . For the six months ended June 30 , 2021 , loan funding , including advances on lines of credit , totaled $ 1.67 billion , compared with $ 2.04 billion for the same period in 2020. Originations under PPP programs totaled $ 208.7 million and $ 397.8 million for the six month periods ended June 30 , 2021 and 2020 , respectively . Total PPP loans outstanding decreased $ 163.8 million to $ 309.4 million at June 30 , 2021 , from $ 473.2 million at December 31 , 2020. In addition to the net decrease in PPP loans , during the six months ended June 30 , 2021 , the Company experienced net decreases in consumer loans , multi - family loans , commercial loans , and residential mortgage loans of $ 144.1 million , $ 123.4 million , $ 49.5 million and $ 40.9 million , respectively , partially offset by net increases in construction loans and commercial mortgage loans of $ 123.9 million and $ 112.8 million , respectively . Commercial real estate , commercial and construction loans represented 83.2 % of the loan portfolio at June 30 , 2021 , compared to 81.8 % at December 31 , 2020 . At June 30 , 2021 , the Company's unfunded loan commitments totaled $ 2.16 billion , including commitments of $ 1.03 billion in commercial loans , $ 673.1 million in construction loans and $ 157.0 million in commercial mortgage loans . Unfunded loan commitments at December 31 , 2020 and June 30 , 2020 were $ 1.99 billion and $ 1.66 billion , respectively . 1