Earnings release
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Source: Provident Financial Services, Inc. July 29, 2026 16:30 ET Provident Financial Services, Inc.Reports Second Quarter Earnings ISELIN, N.J., July 29, 2026 (GLOBE NEWSWIRE) -- Provident Financial Services, Inc. (NYSE:PFS) (the “Company”) reportednet income of $78.1 million, or $0.60 per basic and diluted share for the three months ended June 30, 2026, compared to$79.4 million, or $0.61 per basic and diluted share, for the three months ended March 31, 2026 and $72.0 million, or $0.55per basic and diluted share, for the three months ended June 30, 2025. For the six months ended June 30, 2026, netincome totaled $157.6 million, or $1.21 per basic and diluted share, compared to $136.0 million, or $1.04 per basic anddiluted share, for the six months ended June 30, 2025. For the three and six months ended June 30, 2026, core net income (1), which has been adjusted for one-time core system conversion and executive severance expenses, totaled$79.9 million, or $0.61 per basic and diluted share and $159.3 million, or $1.22 per basic and diluted share, respectively. Core pre-provision, net revenue ("PPNR") (2) for the three months ended June 30, 2026 was $117.8 million, or $0.90 perbasic and diluted share for the three months ended June 30, 2026, compared to $99.6 million, or $0.76 per basic anddiluted share, for the three months ended June 30, 2025. Increases in both net income and core PPNR were drivenprimarily by expanding net interest income and higher non-interest income, including higher wealth management andinsurance agency income. Anthony J. Labozzetta, President and Chief Executive Of cer commented, “Through the rst half of 2026, Provident hasgrown earnings per share 17% year-over-year while also signi cantly improving our pro tability and building capital. Weachieved record pre-provision net revenue during the second quarter, driven by strong commercial loan production,expanding core margin and increasing contribution from non-interest income, which represented nearly 14% of totalrevenues. We are proud of the noticeable momentum of our organization, and I’m optimistic that we will continue todrive organic growth with an unchanged commitment to achieving top quartile risk-adjusted returns." Key Points for the Second Quarter Expanding Core Pro tability with Record Revenue Annualized core return on average assets ("ROAA") (3) and net interest margin improved to 1.27% and 3.48%,respectively, from 1.19% and 3.36% in the prior year quarter. A reconciliation between GAAP and the abovenon-GAAP ratios is shown on page 2 of the earnings release.Core net interest margin, which excludes the impact of purchase accounting accretion and amortization andinterest recovery on resolved non-performing loans, increased 5 basis points from the trailing quarter to 3.09%and 16 basis points from the prior year quarter. Core PPNR (2) growth of $18.2 million from the prior year quarter, resulting in a 23 basis point expansion ofPPNR ROAA to 1.87%. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 2 ofthe earnings release.Record net-interest income increased $15.6 million to $202.7 million when compared to the prior year quarter,driven primarily by growth in our earning assets and an expanded net interest margin.Record non-interest income increased $4.9 million to $32.0 million when compared to the prior year quarter,driven primarily by growth in loan related fee income, swap fee income, wealth management and insuranceagency income.Strong Loan Growth Trends with Low Net Charge-OffsTotal commercial loans, including mortgage warehouse lines, commercial mortgage, multi-family andconstruction loans, increased 9.9% annualized for the quarter.Our record pipeline totaled $3.17 billion as of June 30, 2026, with a weighted average interest rate of 6.33%.Both the CRE and C&I pipelines exceeded $1.0 billion for the second consecutive quarter, re ecting theinvestments we have made in our commercial banking group to generate sustainable, diversi ed loangrowth.Non-performing loans declined $6.0 million compared to the trailing quarter to $136.9 million. Net charge-offsof $1.9 million and $5.0 million for the quarter and six months ended June 30, 2026, represent an annualized 4and 5 basis points of average loans, respectively.Building Capital Position further Strengthening the Balance Sheet Tangible book value ("TBV") per share (4) grew 2% to $16.42 quarter over quarter and grew 12% year over year. Tangible common equity ratio (4) has grown consistently, increasing from 8.03% as of June 30, 2025, to 8.60%as of June 30, 2026.
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Common Equity Tier One and Total Risk Based Capital ratios for Provident Bank were above well-capitalizedat 12.1% and 13.0% as of June 30, 2026, respectively.The Company's adjusted CRE concentration ratio, excluding purchase accounting adjustments as of June 30,2026 was 399.7%, compared to 399.5% as of December 31, 2025. Second Quarter 2026 Financial Highlights and Key Performance Indicators (KPIs): For the Quarter Ended June 30, March 31, December31, September30, June 30, 2026 2026 2025 2025 2025 Annualized return on average assets 1.24% 1.29% 1.34% 1.16% 1.19% Annualized core return on average assets(3) 1.27% 1.29% 1.34% 1.16% 1.19% Annualized return on average equity 10.82% 11.21% 11.78% 10.39% 10.76% Annualized core return on average equity(3) 11.05% 11.21% 11.78% 10.39% 10.76% Annualized return on average tangible equity(5) 15.90% 16.58% 17.58% 16.01% 16.79% Annualized core return on average tangible equity(3) 16.22% 16.58% 17.58% 16.01% 16.79% Annualized core non-interest expense to average assets(6) 1.85% 1.90% 1.84% 1.83% 1.89% Core ef ciency ratio(7) 49.75% 52.02% 50.97% 51.01% 53.52% Non-performing loans to total loans 0.68% 0.73% 0.40% 0.52% 0.56% Non-performing assets to total assets 0.54% 0.58% 0.32% 0.41% 0.44% Allowance for loan losses to total non-performing loans 134.87% 123.84% 235.61% 186.21% 175.32% Allowance for loan losses to total loans 0.92% 0.90% 0.95% 0.97% 0.98% Annualized net loan charge-offs to averagetotal loans 0.04% 0.06% 0.09% 0.11% 0.03% Average yield on interest-earning assets 5.61% 5.53% 5.66% 5.76% 5.68% Average cost of interest-bearing liabilities 2.71% 2.71% 2.83% 2.96% 2.94% Net interest margin 3.48% 3.40% 3.44% 3.43% 3.36% Annualized core PPNR return on average assets(2) 1.87% 1.75% 1.78% 1.76% 1.64% Annualized core PPNR return on average equity(2) 16.30% 15.25% 15.68% 15.74% 14.88% Annualized core PPNR return on average tangible equity(2) 22.21% 20.93% 21.78% 22.20% 21.26% Balance Sheet Summary Assets: Total assets as of June 30, 2026 were $25.66 billion, compared to $24.98 billion as of December 31, 2025.Total investment securities were $3.57 billion as of June 30, 2026, compared to $3.47 billion as of December 31,2025. The increase in investment securities was primarily due to purchases of mortgage-backed securities,partially offset by an increase in unrealized losses on available for sale debt securities.Loans held for investment totaled $20.05 billion as of June 30, 2026, and $19.50 billion as of December 31, 2025,with net increases of $407.6 million of commercial loans, $139.5 million of multi-family loans and $103.8 millionof commercial mortgage loans, partially offset by net decreases of $43.1 million of mortgage warehouse lines,$35.6 million of residential mortgage loans, $23.2 million of construction loans and $5.1 million of consumerloans.Total commercial loans, including mortgage warehouse lines, commercial mortgage, multi-family andconstruction loans, represented 87.3% of the loan portfolio as of June 30, 2026, compared to 86.7% as ofDecember 31, 2025. Loan funding, including advances on lines of credit, totaled $5.28 billion as of June 30, 2026, comparedwith $4.30 billion for the same period in 2025.The Company’s unfunded loan commitments totaled $4.07 billion, including commitments of $2.37billion in commercial loans, $717.0 million in construction loans and $283.5 million in commercialmortgage loans. Unfunded loan commitments as of December 31, 2025 and June 30, 2025 were $3.71billion and $3.74 billion, respectively.
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June 30, 2026 March 31, 2026 December 31,2025 (Dollars in thousands) Mortgage loans: Commercial $ 7,502,579 $ 7,423,652 $ 7,398,792 Multi-family 3,806,823 3,724,236 3,667,337 Construction 638,933 640,929 662,112 Residential 1,938,704 1,960,861 1,974,324 Total mortgage loans 13,887,039 13,749,678 13,702,565 Commercial loans 5,251,096 4,966,608 4,843,466 Mortgage warehouse lines 313,934 334,505 357,051 Consumer loans 607,373 608,016 612,431 Total gross loans 20,059,442 19,658,807 19,515,513 Premiums on purchased loans 1,663 1,700 1,524 Net deferred fees and unearneddiscounts (15,353) (12,805) (12,976) Total loans $ 20,045,752 $ 19,647,702 $ 19,504,061 Liabilities and Capital: Total deposits were $19.55 billion as of June 30, 2026, compared to $19.28 billion as of December 31, 2025. Totalsavings and demand deposit accounts increased $110.3 million to $16.10 billion as of June 30, 2026, while total timedeposits increased $156.2 million to $3.44 billion as of June 30, 2026. The increase in savings and demand depositswas largely attributable to a $351.4 million increase in money market deposits and a $94.1 million increase in non-interest bearing demand deposits, partially offset by a $328.7 million decrease in interest bearing demanddeposits. Within interest bearing demand deposits, municipal deposits decreased $443.4 million, primarily due toseasonal out ows. To assist in funding the aforementioned seasonal out ows, brokered time deposits increased by$149.3 million. June 30, 2026 March 31, 2026 December 31,2025 (Dollars in thousands) Non-interest bearing $ 3,808,318 3,716,536 3,714,253 Savings 1,582,750 1,624,122 1,589,259 Money market 4,044,648 3,846,653 3,693,285 Negotiable Order of Withdrawal ("NOW") 6,665,950 6,723,369 6,994,610 Certi cates of deposit 3,443,503 3,189,622 3,287,276 Total deposits $ 19,545,169 19,100,302 19,278,683 Borrowed funds totaled $2.41 billion as of June 30, 2026, compared to $2.11 billion as of December 31, 2025. Theincrease in borrowed funds was largely used to fund asset growth and seasonal out ows in municipal deposits.Borrowed funds represented 9.4% of total assets as of June 30, 2026, an increase from 8.5% as of December 31, 2025.Stockholders’ equity totaled $2.91 billion compared to $2.83 billion as of December 31, 2025, primarily due to netincome earned for the period, partially offset by cash dividends paid to stockholders and an increase in unrealizedlosses on available for sale debt securities.For the three and six months ended June 30, 2026, common stock repurchases totaled 25,799 shares at anaverage cost of $22.15 per share and 614,722 shares at an average cost of $21.09 per share, respectively. As ofJune 30, 2026, approximately 2,199,471 shares remained eligible for repurchase under the current stockrepurchase authorization. Book value per share and TBV per share(4) as of June 30, 2026 were $22.29 and $16.42, respectively, comparedwith $21.69 and $15.70, respectively, as of December 31, 2025. Asset Quality: The Company’s total non-performing loans as of June 30, 2026 were $136.9 million, or 0.68% of total loans held forinvestment, compared to $142.9 million, or 0.73% of total loans as of March 31, 2026 and $78.4 million, or 0.40% oftotal loans as of December 31, 2025. The allowance for credit losses on loans represented 134.87% of non-performingloans, compared to 235.61% at December 31, 2025, and 175.32% at June 30, 2025.As of June 30, 2026, impaired loans totaled $121.2 million with related speci c reserves of $3.8 million, comparedwith impaired loans totaling $128.4 million with related speci c reserves of $1.6 million as of March 31, 2026. As ofDecember 31, 2025, impaired loans totaled $63.3 million with related speci c reserves of $5.9 million.As of June 30, 2026, the Company’s allowance for credit losses related to the loan portfolio was 0.92% of total loans,compared to 0.90% and 0.95% as of March 31, 2026 and December 31, 2025, respectively. The allowance for creditlosses decreased $111,000 to $184.7 million as of June 30, 2026, from $184.8 million as of December 31, 2025. Thedecrease in the allowance for credit losses on loans as of June 30, 2026 compared to December 31, 2025 was due to
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net charge-offs of $5.0 million, partially offset by a $4.9 million provision for credit losses on loans. The following table sets forth accruing past due loans and non-accrual loans held for investment on the dates indicated,as well as delinquency statistics and certain asset quality ratios. June 30, 2026 March 31, 2026 December 31, 2025 NumberofLoans PrincipalBalanceof Loans NumberofLoans PrincipalBalanceof Loans NumberofLoans PrincipalBalanceof Loans (Dollars in thousands) Accruing past due loans: 30 to 59 days past due: Commercial mortgage loans 3$ 2,301 4$ 2,665 8$ 15,652 Multi-family mortgage loans 1 1,570 1 694 — — Construction loans — — 1 6,639 — — Residential mortgage loans 27 6,393 25 5,123 34 8,344 Total mortgage loans 31 10,264 31 15,121 42 23,996 Commercial loans 5 1,474 22 10,359 9 1,303 Consumer loans 31 1,401 42 3,588 49 2,209 Total 30 to 59 days past due 67$ 13,139 95$ 29,068 100$ 27,508 60 to 89 days past due: Commercial mortgage loans —$ — —$ — —$ — Multi-family mortgage loans — — — — 1 932 Construction loans — — — — — — Residential mortgage loans 20 5,929 22 6,893 16 4,177 Total mortgage loans 20 5,929 22 6,893 17 5,109 Commercial loans 4 828 6 2,520 3 633 Consumer loans 13 1,577 12 634 14 781 Total 60 to 89 days past due 37 8,334 40 10,047 34 6,523 Total accruing past due loans 104$ 21,473 135$ 39,115 134$ 34,031 Non-accrual: Commercial mortgage loans 8$ 21,338 9$ 21,977 11$ 26,856 Multi-family mortgage loans 1 266 1 275 3 2,268 Construction loans 1 2,854 1 3,278 1 5,159 Residential mortgage loans 32 7,834 27 8,669 32 9,062 Total mortgage loans 42 32,292 38 34,199 47 43,345 Commercial loans 71 103,383 41 107,398 28 33,219 Consumer loans 17 1,210 23 1,327 27 1,856 Total non-accrual loans 130$136,885 102$142,924 102$78,420 Non-performing loans to total loansheld for investment 0.68% 0.73% 0.40% Allowance for loan losses to total non-performing loans 134.87% 123.84% 235.61% Allowance for loan losses to total loans 0.92% 0.90% 0.95% As of June 30, 2026 and December 31, 2025, the Company held foreclosed assets of $1.0 million and $2.0 million,respectively. Foreclosed assets as of June 30, 2026 was comprised of one commercial real estate property. Total non-performing assets at June 30, 2026 increased $57.4 million to $137.9 million, or 0.54% of total assets, from $80.4 million, or0.32% of total assets at December 31, 2025. Results of Operations Second quarter of 2026 compared to the rst quarter of 2026: Net interest income Net interest income was $202.7 million, compared to $193.7 million. The increase was primarily due to originationsof new loans at current market rates and the favorable repricing of adjustable rate loans.Net interest margin was 3.48%, compared to 3.40%. The yield on interest-earning assets increased 8 basis points to5.61%, while the cost of interest-bearing liabilities remained at 2.71%. The cost of total deposits, which includes non-interest bearing deposits, was 1.92%, compared to 1.94%.
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Average loans totaled $19.57 billion, an increase of $214.7 million, or 4.44%, primarily due to strong commercial loangrowth in the quarter.Average total deposits totaled $19.23 billion compared to $19.24 billion. Provision for credit losses The provision for credit losses was $9.3 million, compared to a $2.1 million recapture of previous provisions for creditlosses in the prior quarter. The provision for credit losses in the second quarter consisted of a $9.6 million provisionrelated to loans, partially offset by a $0.2 million recapture of provision related to off-balance sheet creditexposures, compared with a $4.7 million recapture of provision for credit losses on loans, partially offset by a $2.5million provision related to off-balance sheet credit exposures for the prior quarter. The increase in the provisionfor credit losses was primarily due to overall growth in the loan portfolio, combined with an increase in speci creserves on individually evaluated loans.Net charge-offs were $1.9 million, compared to $3.1 million in the prior quarter, while the ratio of net charge-offs toaverage loans was 0.04%, compared to 0.06% in the prior quarter. Non-interest income and non-interest expense Total non-interest income was $32.0 million, compared to $31.5 million, an increase of $0.5 million. The increase wasprimarily driven by a $1.8 million increase in fee income, partially offset by a $1.4 million decrease in insuranceagency income. The increase in fee income was primarily related to increases in loan related fee income anddeposit fee income. The decrease in insurance agency income was mainly due to the receipt of contingentcommissions in the prior quarter.Total non-interest expense was $119.3 million, compared to $117.1 million, an increase of $2.1 million. The increase wasmainly due to $1.5 million related to costs associated with our ongoing core system conversion, combined with anincrease in severance expense. The Company’s annualized core non-interest expense as a percentage of average assets(6) totaled 1.85% for thequarter ended June 30, 2026, compared to 1.90% for the trailing quarter. The core ef ciency ratio (core non-interest expense divided by the sum of net interest income and core non-interest income)(7) was 49.75% for the threemonths ended June 30, 2026, compared to 52.02% for the trailing quarter. Income tax expense Income tax expense was $27.9 million, compared to $30.8 million, and the effective tax rate was 26.3%, compared to27.9%. The decrease in income tax expense was primarily related to a decrease in pre-tax book income, combined withdiscrete items related to bene ts associated with carry-back tax credits, partially offset by the effects of recentlegislation adopted by New Jersey with regard to net operating loss usage. The effective tax rate change was primarilyrelated to the aforementioned discrete items. Second quarter of 2026 compared to the second quarter of 2025: Net interest income Net interest income was $202.7 million, compared to $187.1 million. The increase was primarily due to originations ofnew loans at current market rates, combined with favorable repricing of deposits.Net interest margin was 3.48%, compared to 3.36%. The yield on interest-earning assets decreased seven basispoints to 5.61%, while the cost of interest-bearing liabilities decreased 23 basis points to 2.71%. The cost of totaldeposits, which includes non-interest bearing deposits, was 1.92%, compared to 2.10%.Average loans totaled $19.57 billion, an increase of $742.0 million, or 3.94%, primarily due to strong loan growth inthe quarter.Average total deposits totaled $19.23 billion, an increase of $807.8 million, or 4.39%. Provision for credit losses The provision for credit losses was $9.3 million, compared to a $2.9 million recapture of previous provisions for creditlosses for the same period last year. The provision for credit losses in the second quarter consisted of a $9.6 millionprovision related to loans, partially offset by a $0.2 million recapture of provision related to off-balance sheet creditexposures, compared with a $2.7 million and a $0.2 million recapture of provision for credit losses on loans and off-balance sheet credit exposures for the same period last year. The increase in the provision for credit losses wasprimarily due to overall growth in the loan portfolio, combined with an increase in speci c reserves on individuallyevaluated loans.Net charge-offs were $1.9 million, compared to $1.2 million a year ago, while the ratio of net charge-offs to averageloans was 0.04%, compared to 0.03% a year ago. Non-interest income and non-interest expense Total non-interest income was $32.0 million, compared to $27.1 million, an increase of $4.9 million. The increase wasprimarily driven by a $1.5 million increase in fee income, a $1.2 million increase in BOLI income and a $1.1 millionincrease in other non-interest income. The increase in fee income was primarily related to an increase in loanrelated fee income. The increase in BOLI income was primarily related to an increase in bene t claims, while theincrease in other non-interest income was mainly due to an increase in swap fee income.
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Total non-interest expense was $119.3 million, compared to $114.6 million, an increase of $4.6 million. The increasewas primarily driven by a $4.0 million increase in compensation and bene ts expense, partially due to an increasein severance expense, and $1.5 million related to costs associated with our ongoing core system conversion,partially offset by a $0.9 million decrease in amortization of intangibles primarily due to a scheduled reduction inthe rate of core deposit intangible amortization related to the merger with Lakeland. The Company’s annualized core non-interest expense as a percentage of average assets(6) totaled 1.85% for thequarter ended June 30, 2026, compared to 1.89% for the same period last year. The core ef ciency ratio (core non- interest expense divided by the sum of net interest income and core non-interest income)(7) was 49.75% for thethree months ended June 30, 2026, compared to 53.52% for the same period last year. Income tax expense Income tax expense was $27.9 million, compared to $30.5 million, and the effective tax rate was 26.3%, compared to29.7%. The decrease in income tax expense and the effective tax rate was primarily related to discrete items relatedto bene ts associated with carry-back tax credits and purchases of current year tax credits, partially offset byeffects of recently adopted New Jersey legislation with regard to net operating loss usage. 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 nancial products andservices through its network of branches throughout New Jersey, Bucks, Lehigh and Northampton counties inPennsylvania, as well as Orange, Queens and Nassau Counties in New York. The Bank also provides duciary and wealthmanagement services through its wholly owned subsidiary, Beacon Trust Company and insurance services through itswholly owned subsidiary, Provident Protection Plus, Inc. Post Earnings Conference Call Representatives of the Company will hold a conference call for investors on Thursday, July 30, 2026 at 10:00 a.m. EasternTime to discuss the Company’s nancial results for the quarter ended June 30, 2026. The call may be accessed by dialing1-833-461-5787 (United States Toll Free) and 1-626-884-3620 (United States Local). Speakers will need to enter meetingID code (216 708 612) before being met by a live operator. Internet access to the call is also available (listen only) atprovident.bank by going to Investor Relations and clicking on "Webcast." A supplemental 2nd 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 SecuritiesLitigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the SecuritiesExchange Act of 1934, as amended. Such forward-looking statements may be identi ed by reference to a future periodor 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 Item1A of the Company's Annual Report on Form 10-K, as supplemented by its Quarterly Reports on Form 10-Q, and thoserelated to the economic environment, particularly in the market areas in which the Company operates, in ation andunemployment, competitive products and pricing, real estate values, scal and monetary policies of the U.S.Government, tariffs, changes in accounting policies and practices that may be adopted by the regulatory agencies andthe accounting standards setters, changes in government regulations affecting nancial institutions, includingregulatory 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 nancial 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 onlyas of the date they are made. The Company advises readers that the factors listed above could affect the Company's nancial performance and could cause the Company's actual results for future periods to differ materially from anyopinions or statements expressed with respect to future periods in any current statements. The Company does notassume any duty, and does not undertake, to update any forward-looking statements to re ect events or circumstancesafter the date of this statement. Non-GAAP Financial Measures (1) Core net income, pre-provision, net-revenue annualized core return on average assets, annualized return on averagetangible equity, tangible common equity capital ratio, tangible book value per share, annualized core non-interestexpense as a percentage of average assets and the core ef ciency ratio are non-GAAP nancial measures. Please referto the Notes following the Consolidated Financial Highlights which contain the reconciliation of GAAP to non-GAAP nancial measures and the associated calculations. PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
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Consolidated Statements of Financial Condition June 30, 2026 (Unaudited) and December 31, 2025 (Dollars in Thousands) Assets June 30, 2026 December 31,2025 Cash and cash equivalents $ 228,293 $ 211,484 Available for sale debt securities, at fair value 3,286,456 3,164,756 Held to maturity debt securities, (net of $22,000 allowance as ofJune 30, 2026 (unaudited) and $16,000 allowance as of December 31,2025) 266,224 282,127 Equity securities, at fair value 20,108 19,875 Federal Home Loan Bank stock 130,672 115,687 Loans held for sale 5,478 14,710 Loans held for investment 20,045,752 19,504,061 Less allowance for credit losses 184,656 184,767 Net loans 19,866,574 19,334,004 Foreclosed assets, net 963 2,015 Banking premises and equipment, net 112,197 113,328 Accrued interest receivable 98,118 95,798 Intangible assets 765,019 782,152 Bank-owned life insurance 415,256 414,371 Other assets 473,478 445,113 Total assets $ 25,663,358 $ 24,980,710 Liabilities and Stockholders' Equity Deposits: Demand deposits $ 14,518,916 $ 14,402,148 Savings deposits 1,582,750 1,589,259 Certi cates of deposit of $250,000 or more 965,698 929,989 Other time deposits 2,477,805 2,357,287 Total deposits 19,545,169 19,278,683 Mortgage escrow deposits 47,779 40,253 Borrowed funds 2,407,532 2,111,955 Subordinated debentures 409,065 406,582 Other liabilities 346,828 310,025 Total liabilities 22,756,373 22,147,498 Stockholders' equity: Preferred stock, $0.01 par value, 50,000,000 shares authorized, noneissued — — Common stock, $0.01 par value, 200,000,000 shares authorized,137,565,966 shares issued and 130,423,051 shares outstanding as ofJune 30, 2026 and 130,619,949 outstanding as of December 31, 2025 1,376 1,376 Additional paid-in capital 1,850,121 1,844,949 Retained earnings 1,250,204 1,154,364 Accumulated other comprehensive loss (91,933) (76,183) Treasury stock (102,783) (91,294) Total stockholders' equity 2,906,985 2,833,212 Total liabilities and stockholders' equity $ 25,663,358 $ 24,980,710 PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY Consolidated Statements of Income Three months ended June 30, 2026, March 31, 2026 and June 30, 2025, and six months ended June 30, 2026and 2025 (Unaudited) (Dollars in Thousands, except per share data) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2026 2026 2025 2026 2025 Interest and dividend income:
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Real estate secured loans $ 195,381 $ 191,503 $ 192,792 $ 386,884 $ 379,845 Commercial loans 82,757 77,901 78,854 160,658 154,673 Consumer loans 9,953 9,900 10,464 19,852 20,623 Available for sale debt securities,equity securities and FederalHome Loan Bank stock 35,975 33,282 31,444 69,258 61,088 Held to maturity debt securities 1,778 1,794 1,966 3,572 3,962 Deposits, federal funds sold andother short-term investments 751 686 788 1,437 1,463 Total interest income 326,595 315,066 316,308 641,661 621,654 Interest expense: Deposits 91,803 91,936 96,257 183,739 193,678 Borrowed funds 23,730 21,011 24,470 44,741 42,247 Subordinated debt 8,382 8,376 8,487 16,758 16,907 Total interest expense 123,915 121,323 129,214 245,238 252,832 Net interest income 202,680 193,743 187,094 396,423 368,822 Provision for credit losses 9,334 (2,116) (2,888) 7,218 (2,250) Net interest income afterprovision for credit losses 193,346 195,859 189,982 389,205 371,072 Non-interest income: Fees 12,259 10,464 10,736 22,722 20,391 Wealth management income 7,517 7,402 6,948 14,920 14,275 Insurance agency income 5,446 6,850 4,942 12,296 10,593 Bank-owned life insurance 3,798 4,034 2,585 7,833 4,678 Net (loss) gain on securitiestransactions (309) — — (309) 87 Gain on sale of SBA loans 945 745 647 1,690 1,310 Other income 2,317 1,958 1,217 4,275 2,771 Total non-interest income 31,973 31,453 27,075 63,427 54,105 Non-interest expense: Compensation and employeebene ts 67,289 66,196 63,249 133,485 125,615 Net occupancy expense 12,464 14,985 13,011 27,449 26,938 Data processing expense 9,388 9,646 9,599 19,034 19,203 FDIC Insurance 3,155 2,841 3,341 5,995 6,727 Amortization of intangibles 8,559 8,563 9,497 17,122 18,998 Advertising and promotionexpense 1,513 938 1,429 2,451 2,489 Core systems conversionexpense 1,508 — — 1,508 — Other operating expenses 15,382 13,972 14,488 29,355 30,911 Total non-interest expense 119,258 117,141 114,614 236,399 230,881 Net income before income taxexpense 106,061 110,171 102,443 216,233 194,296 Income tax expense 27,914 30,754 30,462 58,668 58,287 Net income $ 78,147 $ 79,417 $ 71,981 $ 157,565 $ 136,009 Basic earnings per share $ 0.60 $ 0.61 $ 0.55 $ 1.21 $ 1.04 Average basic shares outstanding 130,330,787 130,511,676 130,484,287 130,421,508 130,405,490 Diluted earnings per share $ 0.60 $ 0.61 $ 0.55 $ 1.21 $ 1.04 Average diluted sharesoutstanding 130,388,396 130,588,635 130,500,143 130,488,792 130,440,958 PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY Net Interest Margin Analysis Quarterly Average Balances (Dollars in Thousands) (Unaudited)
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June 30, 2026 March 31, 2026 June 30, 2025 AverageBalance Interest AverageYield/Cost AverageBalance Interest AverageYield/Cost AverageBalance Interest AverageYield/Cost Interest-Earning Assets: Deposits $ 73,162$ 751 4.09%$ 76,589$ 686 3.63%$ 75,714$ 788 4.21% Available forsale debtsecurities 3,272,868 33,637 4.11% 3,217,568 31,458 3.91% 2,958,325 29,092 3.93% Held tomaturitydebtsecurities, net(1) 266,727 1,778 2.67% 273,845 1,794 2.62% 315,204 1,966 2.49% Equitysecurities, atfair value 19,986 123 2.46% 19,988 120 2.42% 19,235 214 4.44% Totalsecurities 3,559,581 35,538 3.99% 3,511,401 33,372 3.80% 3,292,764 31,272 3.80% FederalHome LoanBank stock 132,390 2,215 6.62% 120,299 1,704 5.67% 133,447 2,138 6.44% Net loans:(2) Totalmortgageloans 13,636,285 195,381 5.75% 13,590,636 191,503 5.70% 13,398,650 192,792 5.77% Totalcommercialloans 5,327,395 82,757 6.23% 5,157,785 77,901 6.13% 4,816,237 78,854 6.57% Totalconsumerloans 605,579 9,953 6.59% 606,122 9,900 6.62% 612,418 10,464 6.85% Total netloans 19,569,259 288,091 5.90% 19,354,543 279,304 5.85% 18,827,305 282,110 6.01% Total interest-earningassets $23,334,392$326,595 5.61%$23,062,832$315,066 5.53%$22,329,230$316,308 5.68% Non-InterestEarning Assets: Cash and duefrom banks 162,746 171,092 150,464 Other assets 1,800,478 1,792,490 1,870,114 Total assets $25,297,616 $25,026,414 $24,349,808 Interest-BearingLiabilities: Demanddeposits $10,674,922$63,736 2.39%$10,759,045$63,358 2.39%$9,874,149$64,803 2.63% Savingsdeposits 1,599,622 814 0.20% 1,606,554 840 0.21% 1,647,746 900 0.22% Time deposits 3,236,519 27,253 3.38% 3,230,961 27,738 3.48% 3,197,374 30,555 3.83% Total deposits 15,511,063 91,803 2.37% 15,596,560 91,936 2.39% 14,719,269 96,258 2.62% Borrowedfunds 2,435,404 23,730 3.91% 2,184,719 21,011 3.90% 2,490,379 24,470 3.94% Subordinateddebentures 408,260 8,382 8.23% 407,019 8,376 8.35% 403,286 8,487 8.44% Total interest-bearingliabilities 18,354,727 123,915 2.71% 18,188,298 121,323 2.71% 17,612,934 129,215 2.94%
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Non-InterestBearingLiabilities: Non-interestbearingdeposits 3,716,104 3,644,605 3,700,132 Other non-interestbearingliabilities 329,223 320,398 352,400 Total non-interestbearingliabilities 4,045,327 3,965,003 4,052,532 Total liabilities22,400,054 22,153,301 21,665,466 Stockholders'equity 2,897,562 2,873,113 2,684,342 Total liabilitiesandstockholders'equity $25,297,616 $25,026,414 $24,349,808 Net interestincome $202,680 $193,743 $187,093 Net interestrate spread 2.90% 2.82% 2.74% Net interest-earning assets$4,979,665 $4,874,534 $4,716,296 Net interest margin(3) 3.48% 3.40% 3.36% Ratio ofinterest-earning assetsto totalinterest-bearingliabilities 1.27x 1.27x 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 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 vequarters. 6/30/26 3/31/26 12/31/25 9/30/25 6/30/25 2nd Qtr. 1st Qtr. 4th Qtr. 3rd Qtr. 2nd Qtr. Interest-Earning Assets: Securities 3.99% 3.80% 3.87% 3.89% 3.81% Net loans 5.90% 5.85% 5.98% 6.09% 6.01% Total interest-earning assets 5.61% 5.53% 5.66% 5.76% 5.68% Interest-Bearing Liabilities: Deposits 2.37% 2.39% 2.60% 2.67% 2.62% Borrowings 3.91% 3.90% 3.94% 3.96% 3.94% Total interest-bearing liabilities 2.71% 2.71% 2.83% 2.96% 2.94% Interest rate spread 2.90% 2.82% 2.83% 2.80% 2.74% Net interest margin 3.48% 3.40% 3.44% 3.43% 3.36%
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Ratio of interest-earning assets to interest-bearingliabilities 1.27x 1.27x 1.28x 1.27x 1.27x PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY Net Interest Margin Analysis Average Year to Date Balances (Dollars in Thousands) (Unaudited) June 30, 2026 June 30, 2025 Average Average Average Average Balance Interest Yield/Cost Balance Interest Yield/Cost Interest-Earning Assets: Deposits $ 74,866$ 1,437 3.87%$ 77,882$ 1,463 4.21% Available for sale debt securities 3,245,371 65,095 4.01% 2,893,373 56,505 3.91% Held to maturity debt securities, net(1) 270,266 3,572 2.64% 317,607 3,962 2.50% Equity securities, at fair value 19,987 244 2.44% 19,212 422 3.01% Total securities 3,535,624 68,911 3.90% 3,230,192 60,889 3.75% Federal Home Loan Bank stock 126,378 3,919 12.41% 120,883 4,161 6.92% Net loans:(2) Total mortgage loans 13,615,283 386,884 5.72% 13,351,451 379,845 5.73% Total commercial loans 5,241,339 160,658 6.18% 4,747,564 154,673 6.57% Total consumer loans 605,872 19,852 6.61% 610,728 20,623 6.81% Total net loans 19,462,494 567,394 5.87% 18,709,743 555,141 5.98% Total interest-earning assets $23,199,362$641,661 5.60%$22,138,700$621,654 5.65% Non-Interest Earning Assets: Cash and due from banks 166,896 142,380 Other assets 1,796,506 1,919,313 Total assets $25,162,764 $24,200,393 Interest-Bearing Liabilities: Demand deposits $10,716,751$127,095 2.39%$9,984,248$130,235 2.63% Savings deposits 1,603,069 1,653 0.21% 1,665,075 1,824 0.22% Time deposits 3,233,756 54,991 3.43% 3,198,491 61,618 3.88% Total deposits 15,553,576 183,739 2.38% 14,847,814 193,677 2.63% Borrowed funds 2,310,754 44,741 3.90% 2,205,805 42,247 3.86% Subordinated debentures 407,643 16,758 8.29% 402,665 16,907 8.47% Total interest-bearing liabilities $18,271,973$245,238 2.71%$17,456,284$252,831 2.92% Non-Interest Bearing Liabilities: Non-interest bearing deposits 3,680,552 3,709,602 Other non-interest bearingliabilities 324,834 373,029 Total non-interest bearing liabilities 4,005,386 4,082,631 Total liabilities 22,277,359 21,538,915 Stockholders' equity 2,885,405 2,661,478 Total liabilities and stockholders'equity $25,162,764 $24,200,393 Net interest income $396,423 $368,823 Net interest rate spread 2.89% 2.73% Net interest-earning assets $4,927,389 $4,682,416 Net interest margin(3) 3.47% 3.35% Ratio of interest-earning assets tototal interest-bearing liabilities 1.27x 1.27x
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(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 year-to-date net interest margin for the previous three years. Six Months Ended June 30, 2026 June 30, 2025 June 30, 2024 Interest-Earning Assets: Securities 3.90% 3.75% 2.78% Net loans 5.87% 5.98% 5.83% Total interest-earning assets 5.60% 5.65% 5.43% Interest-Bearing Liabilities: Deposits 2.38% 2.63% 2.74% Borrowings 3.90% 3.86% 3.75% Total interest-bearing liabilities 2.71% 2.92% 2.97% Interest rate spread 2.89% 2.73% 2.46% Net interest margin 3.47% 3.35% 3.08% Ratio of interest-earning assets to interest-bearingliabilities 1.27x 1.27x 1.26x 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) nancialmeasures because it believes that these measures provide useful and comparative information to assess trends in theCompany’s results of operations and nancial condition. Presentation of these non-GAAP nancial measures isconsistent with how the Company evaluates its performance internally and these non-GAAP nancial measures arefrequently used by securities analysts, investors and other interested parties in the evaluation of companies in theCompany’s industry. Investors should recognize that the Company’s presentation of these non-GAAP nancial measuresmight not be comparable to similarly-titled measures of other companies. These non-GAAP nancial measures shouldnot be considered a substitute for GAAP basis measures and the Company strongly encourages a review of itscondensed consolidated nancial statements in their entirety. (1) Core Net Income ThreemonthsEnded Six monthsEnded June 30, June 30, 2026 2026 Net interest income $ 202,680 $ 396,423 Provision for loan losses 9,334 7,218 Net interest income afterprovision for loan losses $ 193,346 $ 389,205 Non-interest income 31,973 63,427 Non-interest expense $ 119,258 $ 236,399 Executive severanceexpense 864 864 Core system conversionexpense 1,508 1508 Core non-interest expense $ 116,886 $ 234,027 Income taxes 27,914 58,668
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Income tax of non-coreitems 663 663 Core net income $ 79,856 $ 159,274 Avg. diluted sharesoutstanding for the 3 and 6months ended June 30,2026 130,388,396 130,488,792 Core diluted earnings pershare $ 0.61 $ 1.22 (2) Annualized core pre-provision net revenue("PPNR") returns on averageassets, average equity andaverage tangible equity Three Months Ended June 30, March 31, December 31, September30, June 30, 2026 2026 2025 2025 2025 Net income $ 78,147 $ 79,417 $ 83,431 $ 71,720 $ 71,981 Adjustments to net income: Provision for credit losses 9,334 (2,116) (1,213) 7,044 (2,888) Write-down on OREproperty — — — — — Executive severanceexpense 864 — — — — Core system conversionexpense 1,508 — — — — Income tax expense 27,914 30,754 28,814 29,895 30,462 Core PPNR $ 117,767 $ 108,055 $ 111,032 $ 108,659 $ 99,555 Annualized core PPNRincome $ 472,362 $ 438,223 $ 440,507 $ 431,093 $ 399,314 Core diluted earnings pershare $130,388,396 $130,588,635 $130,589,271 $130,553,819 $130,500,143 Core PPNR Diluted EPS $ 0.90 $ 0.83 $ 0.85 $ 0.83 $ 0.76 Average assets $25,297,616 $25,026,414 $24,775,214 $24,518,290 $24,349,808 Average equity $ 2,897,562 $ 2,873,113 $ 2,810,166 $2,738,414 $2,684,342 Average tangible equity $ 2,126,989 $ 2,093,975 $ 2,022,451 $ 1,941,625 $ 1,877,923 Annualized core PPNR returnon average assets 1.87% 1.75% 1.78% 1.76% 1.64% Annualized core PPNR returnon average equity 16.30% 15.25% 15.68% 15.74% 14.88% Annualized core PPNR returnon average tangible equity 22.21% 20.93% 21.78% 22.20% 21.26% (3) Annualized Core Returnon Average Assets, AverageEquity and Average TangibleEquity For the Quarter Ended June 30, March 31, December 31, September30, June 30, 2026 2026 2025 2025 2025 Net Income $ 78,147 $ 79,417 83,431 71,720 $ 71,981 Executive severanceexpense 864 — — — — Core system conversionexpense 1,508 — — — — Less: income tax expense (663) — — — — Annualized core net income $ 79,856 79,417 83,431 71,720 71,981
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Plus: Amortization ofIntangibles (net of tax) 6,167 6,170 6,180 6,639 6,639 Annualized core net incomefor annualized core return onaverage tangible equity $ 86,023 $ 85,587 $ 89,611 $ 78,359 $ 78,620 Average assets $25,297,616 $25,026,414 $24,775,214 $24,518,290 $24,349,808 Average equity $ 2,897,562 $ 2,873,113 $ 2,810,166 $2,738,414 $2,684,342 Average tangible equity $ 2,126,989 $ 2,093,975 $ 2,022,451 $ 1,941,625 $ 1,877,923 Annualized Core Return onAverage Assets 1.27% 1.29% 1.34% 1.16% 1.19% Annualized Core Return onAverage Equity 11.05% 11.21% 11.78% 10.39% 10.76% Annualized Core Return onAverage Tangible Equity 16.22% 16.58% 17.58% 16.01% 16.79% (4) Tangible Common EquityRatio, Book and TangibleBook Value per Share Three Months Ended June 30, March 31, December 31, September30, June 30, 2026 2026 2025 2025 2025 Total assets $25,663,358 $25,201,690 $24,980,710 $24,832,763 $24,547,286 Less: total intangible assets 765,019 773,585 782,152 790,729 800,232 Total tangible assets $24,898,339 $24,428,105 $24,198,558 $24,042,034 $23,747,054 Total stockholders' equity $2,906,985 $ 2,862,869 $ 2,833,212 $2,767,035 $ 2,707,555 Less: total intangible assets 765,019 773,585 782,152 790,729 800,232 Total tangible stockholders'equity $ 2,141,966 $2,089,284 $2,051,060 $1,976,306 $ 1,907,323 Tangible common equityratio 8.60% 8.55% 8.48% 8.22% 8.03% Shares outstanding 130,423,051 $130,311,796 $130,619,949 $130,621,757 $130,624,243 Book value per share (totalstockholders' equity/sharesoutstanding) $ 22.29 $ 21.97 $ 21.69 $ 21.18 $ 20.73 Tangible book value pershare (total tangiblestockholders' equity/sharesoutstanding) $ 16.42 $ 16.03 $ 15.70 $ 15.13 $ 14.60 (5) Annualized Return onAverage Tangible Equity Three Months Ended June 30, March 31, December 31, September30, June 30, 2026 2026 2025 2025 2025 Total average stockholders'equity $ 2,897,562 $ 2,873,113 $ 2,810,166 $2,738,414 $2,684,342 Less: total average intangibleassets 770,573 779,138 787,715 796,789 806,419 Total average tangiblestockholders' equity $ 2,126,989 $ 2,093,975 $ 2,022,451 $ 1,941,625 $ 1,877,923 Net income $ 78,147 $ 79,417 $ 83,431 $ 71,720 $ 71,981 Plus: Amortization ofIntangibles, net of tax 6,167 $ 6,170 $ 6,180 $ 6,639 $ 6,639 Total net income $ 84,314 $ 85,587 $ 89,611 $ 78,359 $ 78,620 Annualized return onaverage tangible equity (net 15.90% 16.58% 17.58% 16.01% 16.79%
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income/total averagetangible stockholders' equity) (6) Annualized Core Non-Interest Expense to AverageAssets Three Months Ended June 30, March 31, December 31, September30, June 30, 2026 2026 2025 2025 2025 Reported non-interestexpense $ 119,258 $ 117,141 $ 114,690 $ 113,092 $ 114,614 Adjustments to non-interest expense: Executive severanceexpense 864 — — — — Core system conversionexpense 1,508 — — — — Core non-interest expense $ 116,886 $ 117,141 $ 114,690 $ 113,092 $ 114,614 Annualized core non-interestexpense $ 468,828 $ 475,072 $ 455,020 $ 448,680 $ 459,715 Average assets $25,297,616 $25,026,414 $24,775,214 $24,518,290 $24,349,808 Annualized core non-interestexpense/average assets 1.85% 1.90% 1.84% 1.83% 1.89% (7) Core Ef ciency RatioCalculation Three Months Ended June 30, March 31, December 31, September30, June 30, 2026 2026 2025 2025 2025 Net interest income $ 202,680 $ 193,743 $ 197,411 $ 194,332 $ 187,094 Reported non-interestincome 31,973 31,453 28,311 27,419 27,075 Adjustments to non-interest income: Net (loss) gain on securitiestransactions 309 — (690) (67) — Core non-interest income 32,282 31,453 27,621 27,352 27,075 Total core income $ 234,962 225,196 225,032 221,684 214,169 Core non-interest expense $ 116,886 117,141 114,690 113,092 114,614 Core Ef ciency ratio (corenon-interest expense/coreincome) 49.75% 52.02% 50.97% 51.01% 53.52% SOURCE: Provident Financial Services, Inc. CONTACT: Investor Relations, 1-732-590-9300 Web Site: http://www.Provident.Bank