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EX - 99.1 2 a093021 earningsrelease.htm EX - 99.1 Provident Financial Services , Inc. Announces Third Quarter Earnings and Declares Increased Quarterly Cash Dividend ISELIN , NJ , October 29 , 2021 - Provident Financial Services , Inc. ( NYSE : PFS ) ( the “ Company ” ) reported net income of $ 37.3 million , or $ 0.49 per basic and diluted share , for the three months ended September 30 , 2021 , compared to net income of $ 27.1 million , or $ 0.37 per basic and diluted share , for the three months ended September 30 , 2020. For the nine months ended September 30 , 2021 , the Company reported net income of $ 130.6 million , or $ 1.71 per basic and $ 1.70 per diluted share , compared to net income of $ 56.4 million , or $ 0.84 per basic and diluted share , for the same period last year . Earnings for the three and nine months ended September 30 , 2021 were aided by improved economic conditions and resulting lower credit loss allowance requirements , combined with growth in average interest earning assets including assets acquired in the July 31 , 2020 merger with SB One Bancorp ( " SB One " ) and the investment of increased deposits . For the three months ended September 30 , 2021 , the Company recorded a provision for credit losses on loans of $ 1.0 million , while for the nine months ended September 30 , 2021 , the Company recorded a negative provision for credit losses on loans of $ 24.7 million , compared with provisions of $ 6.4 million and $ 32.0 million for the respective 2020 periods . Christopher Martin , Chairman and Chief Executive Officer commented , " We recorded strong results this quarter , with a return on average assets of 1.11 % and a return on average assets of 1.55 % on a pre - tax , pre - provision basis . Revenue growth was aided by our disciplined deployment of excess liquidity during the quarter , which supported growth in average interest earning assets . Excluding PPP loans , our quarter - end outstanding loans increased $ 153 million compared to the trailing quarter total , or an annualized increase of 6.4 % . On the deposit side , we had another quarter of growth in average non - interest bearing deposits and our cost of deposits further improved to just 23 basis points . " Martin added , “ I am pleased to announce that our Board of Directors approved an increase in our regular quarterly cash dividend . The dividend increase reflects confidence in our earnings outlook and our commitment to our shareholders . " Declaration of Quarterly Dividend The Company's Board of Directors declared a quarterly cash dividend of $ 0.24 per common share payable on November 26 , 2021 , to stockholders of record as of the close of business on November 12 , 2021. This dividend is an increase of 4.3 % from the prior quarter's regular cash dividend of $ 0.23 per common share . Balance Sheet Summary Total assets at September 30 , 2021 were $ 13.39 billion , a $ 472.2 million increase from December 31 , 2020. The increase in total assets was primarily due to a $ 763.9 million increase in total investments , partially offset by a $ 268.3 million decrease in total loans and a $ 27.1 million decrease in cash and cash equivalents . The Company's loan portfolio decreased $ 268.3 million to $ 9.55 billion at September 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 nine months ended September 30 , 2021 , loan funding , including advances on lines of credit , totaled $ 2.54 billion , compared with $ 2.63 billion for the same period in 2020. Originations under PPP programs totaled $ 208.7 million and $ 397.8 million for the nine month periods ended September 30 , 2021 and 2020 , respectively . Total PPP loans outstanding decreased $ 299.4 million to $ 173.8 million at September 30 , 2021 , from $ 473.2 million at December 31 , 2020. Excluding the net decrease in PPP loans , during the nine months ended September 30 , 2021 , the Company experienced net increases in commercial mortgage loans and construction loans of $ 246.0 million and $ 143.9 million , respectively , partially offset by net decreases in consumer loans , multi - family loans , residential mortgage loans and commercial loans of $ 158.8 million , $ 104.7 million , $ 64.7 million and $ 34.1 million , respectively . Commercial real estate , commercial and construction loans represented 83.7 % of the loan portfolio at September 30 , 2021 , compared to 81.8 % at December 31 , 2020 . 1