Earnings release
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PRESS RELEASE PROVIDENT FINANCIAL SERVICES, INC. REPORTS THIRD QUARTEREARNINGS Company Release - 10/28/2026 4:30 PM ET ISELIN, N.J., Oct. 28, 2026 (GLOBE NEWSWIRE) -- Provident Financial Services, Inc. (NYSE: PFS) (the “Company”) reported net income of $69.2 million, or$0.53 per basic and diluted share for the three months ended September 30, 2026, compared to $78.1 million, or $0.60 per basic and diluted share,for the three months ended June 30, 2026 and $71.7 million, or $0.55 per basic and diluted share, for the three months ended September 30, 2025.For the nine months ended September 30, 2026, net income totaled $226.7 million, or $1.74 per basic and diluted share, compared to $207.7 million,or $1.59 per basic and diluted share, for the nine months ended September 30, 2025. Results for the quarter were impacted by a $17.5 million one-time loss on extinguishment of debt due to the accelerated amortization of purchase accounting adjustments, core conversion related costs of $3.7million and $465,000 of branch restructuring expenses. Excluding these expenses, core net income for the three and nine months endedSeptember 30, 2026, totaled $84.3 million, or $0.65 per basic and diluted share, and $243.5 million, or $1.87 per basic and diluted share, respectively. Core pre-provision, net revenue ("PPNR")for the three months ended September 30, 2026 was $119.5 million, or $0.92 per basic and diluted share,for the three months ended September 30, 2026, compared to $108.7 million, or $0.83 per basic and diluted share, for the three months endedSeptember 30, 2025. Anthony J. Labozzetta, President and Chief Executive Officer commented, “We continued our strong performance, delivering another quarter of solidfinancial results including record revenues. Building momentum in both our spread and fee-based businesses drove 10% year-over-year growth inour pre-provision net revenue, while core deposits grew nearly 6% annualized. During the quarter, we successfully completed our previously-announced core conversion, while also maintaining an adjusted efficiency ratio below 50%. Our robust loan pipeline and strong asset quality leaveme optimistic that we will keep driving profitable organic growth going forward." Key Points for the Third Quarter Expanding Core Profitability with Record Revenue The Company's annualized returns on average assets, average equity and average tangible equity were 1.07%, 9.39% and 13.80% for thequarter ended September 30, 2026. Annualized core return on average assets ("ROAA") and net interest margin improved to 1.30% and 3.50%, respectively, from 1.16% and3.43% in the prior year quarter. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 19 of the earningsrelease. Core net interest margin, which excludes the impact of purchase accounting accretion and amortization and interest recovery on resolvednon-performing loans, increased 7 basis points from the trailing quarter to 3.16% and 22 basis points from the prior year quarter. Core PPNR grew $10.8 million from the prior year quarter, resulting in a 9 basis point expansion of PPNR ROAA to 1.85%. A reconciliationbetween GAAP and the above non-GAAP ratios is shown on page 18 of the earnings release. Record net-interest income increased $13.7 million to $208.0 million when compared to the prior year quarter, driven primarily by growthin our earning assets and an expanded net interest margin. Strong Deposit Growth and Steady Capital Strengthening the Balance Sheet The Company's total deposits increased $261.7 million or 5.31% annualized quarter over quarter, to $19.81 billion as of September 30,2026, while total core deposits, which exclude certificates of deposit and wholesale deposits, increased $233.7 million, or 5.76%annualized, to $15.42 billion as of September 30, 2026. The Company's loan-to-deposit ratio decreased slightly to 101.8% as of September 30, 2026, compared to 102.6% as of June 30, 2026. Theprimary reason for the decrease in the loan-to-deposit ratio was due to an increase in non-maturity core business deposits. Compared to the prior quarter, tangible book value ("TBV") per share declined slightly to $16.16, while the tangible common equity("TCE") ratio declined 20 basis points to 8.40%, both of which were impacted by an $83.0 million reduction in Accumulated OtherComprehensive Income ("AOCI"). Common Equity Tier One and Total Risk Based Capital ratios for Provident Bank were above well-capitalized at 12.5% and 13.4% as ofSeptember 30, 2026, respectively. The Company's adjusted CRE concentration ratio, excluding purchase accounting adjustments as of September 30, 2026, was 399.4%. Strong Loan Growth Trends with Low Net Charge-Offs (1) (2) (3) (2) (4) (4)
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Total commercial loans, including mortgage warehouse lines, commercial mortgage, multi-family and construction loans, increased 3.4%annualized for the quarter. Our pipeline totaled $3.03 billion as of September 30, 2026, with a weighted average interest rate approaching 6.50%. Both the CRE andC&I pipelines exceeded $1.0 billion for the third consecutive quarter, reflecting the investments we have made in our commercial bankinggroup to generate sustainable, diversified loan growth. Net charge-offs of $2.4 million and $7.4 million for both the quarter and nine months ended September 30, 2026, represent an annualized5 basis points of average loans for both periods. Third Quarter 2026 Financial Highlights and Key Performance Indicators (KPIs): For the Quarter Ended September 30, June 30, March 31, December 31, September 30, 2026 2026 2026 2025 2025 Annualized return on average assets 1.07% 1.24% 1.29% 1.34% 1.16% Annualized core return on average assets 1.30% 1.27% 1.29% 1.34% 1.16% Annualized return on average equity 9.39% 10.82% 11.21% 11.78% 10.39% Annualized core return on average equity 11.44% 11.05% 11.21% 11.78% 10.39% Annualized return on average tangible equity 13.80% 15.87% 16.54% 17.54% 16.01% Annualized core return on average tangibleequity 16.57% 16.18% 16.54% 17.54% 16.01% Annualized core non-interest expense toaverage assets 1.84% 1.85% 1.90% 1.84% 1.83% Core efficiency ratio 49.93% 49.75% 52.02% 50.97% 51.01% Non-performing loans to total loans 0.69% 0.68% 0.73% 0.40% 0.52% Non-performing assets to total assets 0.55% 0.54% 0.58% 0.32% 0.41% Allowance for loan losses to total non-performing loans 135.20% 134.87% 123.84% 235.61% 186.21% Allowance for loan losses to total loans 0.94% 0.92% 0.90% 0.95% 0.97% Annualized net loan charge-offs to averagetotal loans 0.05% 0.04% 0.06% 0.09% 0.11% Average yield on interest-earning assets 5.68% 5.61% 5.53% 5.66% 5.76% Average cost of interest-bearing liabilities 2.79% 2.71% 2.71% 2.83% 2.96% Net interest margin 3.50% 3.48% 3.40% 3.44% 3.43% Annualized core PPNR return on averageassets 1.85% 1.87% 1.75% 1.78% 1.76% Annualized core PPNR return on averageequity 16.22% 16.30% 15.25% 15.68% 15.74% Annualized core PPNR return on averagetangible equity 23.51% 23.82% 22.59% 23.46% 24.14% Balance Sheet Summary Assets: Total assets as of September 30, 2026 were $25.85 billion, compared to $24.98 billion as of December 31, 2025. Total investment securities were $3.56 billion as of September 30, 2026, compared to $3.47 billion as of December 31, 2025. The increasein investment securities was primarily due to purchases of mortgage-backed securities, partially offset by an increase in unrealized losseson available for sale debt securities. Loans held for investment totaled $20.17 billion as of September 30, 2026, and $19.50 billion as of December 31, 2025, with net increasesof $394.0 million of commercial loans, $206.0 million of commercial mortgage loans, $174.4 million of multi-family loans and $32.7 millionof construction loans, partially offset by net decreases of $74.0 million of mortgage warehouse lines, $62.9 million of residential mortgageloans and $1.5 million of consumer loans. (3) (3) (5) (3) (6) (7) (2) (2) (2)
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Total commercial loans, including mortgage warehouse lines, commercial mortgage, multi-family and construction loans,represented 87.5% of the loan portfolio as of September 30, 2026, compared to 86.7% as of December 31, 2025. Loan funding, including advances on lines of credit, totaled $7.84 billion as of September 30, 2026, compared with $7.00 billion forthe same period in 2025. The Company’s unfunded loan commitments totaled $3.95 billion, including commitments of $2.24 billion in commercial loans,$677.8 million in construction loans and $335.1 million in commercial mortgage loans. Unfunded loan commitments as ofDecember 31, 2025 and September 30, 2025 were $3.71 billion and $3.82 billion, respectively. September 30,2026 June 30, 2026 December 31,2025 (Dollars in thousands) Mortgage loans: Commercial $ 7,604,830 $ 7,502,579 $ 7,398,792 Multi-family 3,841,754 3,806,823 3,667,337 Construction 694,807 638,933 662,112 Residential 1,911,472 1,938,704 1,974,324 Total mortgage loans 14,052,863 13,887,039 13,702,565 Commercial loans 5,237,467 5,251,096 4,843,466 Mortgage warehouse lines 283,093 313,934 357,051 Consumer loans 610,970 607,373 612,431 Total gross loans 20,184,393 20,059,442 19,515,513 Premiums on purchased loans 1,676 1,663 1,524 Net deferred fees and unearned discounts (15,999) (15,353) (12,976) Total loans $ 20,170,070 $ 20,045,752 $ 19,504,061 Liabilities and Capital: Total deposits were $19.81 billion as of September 30, 2026, compared to $19.28 billion as of December 31, 2025. Total savings and demanddeposit accounts increased $590.5 million to $16.58 billion as of September 30, 2026, while total time deposits decreased $62.4 million to $3.22billion as of September 30, 2026. The increase in savings and demand deposits was largely attributable to a $408.5 million increase in moneymarket deposits, a $176.1 million increase in interest-bearing demand deposits and a $143.5 million increase in non-interest bearing demanddeposits, partially offset by a $137.6 million decrease in savings deposits. Within interest-bearing demand deposits, municipal depositsdecreased $527.3 million, primarily due to seasonal outflows. To assist in funding the aforementioned seasonal outflows, brokered demanddeposits increased by $432.5 million. September 30,2026 June 30, 2026 December 31,2025 (Dollars in thousands) Non-interest bearing $ 3,857,790 3,808,318 3,714,253 Savings 1,451,633 1,582,750 1,589,259 Money market 4,101,755 4,044,648 3,693,285 Negotiable Order of Withdrawal ("NOW") 7,170,752 6,665,950 6,994,610 Certificates of deposit 3,224,905 3,443,503 3,287,276 Total deposits $ 19,806,835 19,545,169 19,278,683 Borrowed funds totaled $2.39 billion as of September 30, 2026, compared to $2.11 billion as of December 31, 2025. The increase in borrowedfunds was largely used to fund asset growth and replace seasonal outflows in municipal deposits. Borrowed funds represented 9.2% of totalassets as of September 30, 2026, an increase from 8.5% as of December 31, 2025. Stockholders’ equity totaled $2.86 billion compared to $2.83 billion as of December 31, 2025, primarily due to net income earned for the period,partially offset by cash dividends paid to stockholders and an increase in unrealized losses on available for sale debt securities.For the three months ended September 30, 2026, common stock repurchases totaled 1,464 shares at an average cost of $24.44 per share,all of which were made in connection with withholding to cover income taxes on the vesting of stock-based compensation. For the ninemonths ended September 30, 2026, common stock repurchases totaled 616,186 shares at an average cost of $21.10 per share. As ofSeptember 30, 2026, approximately 2,198,007 shares remained eligible for repurchase under the current stock repurchase authorization.
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Book value per share and TBV per share as of September 30, 2026 were $21.96 and $16.16, respectively, compared with $21.69 and$15.70, respectively, as of December 31, 2025. Asset Quality: The Company’s total non-performing loans as of September 30, 2026 were $140.1 million, or 0.69% of total loans held for investment,compared to $136.9 million, or 0.68% of total loans as of June 30, 2026 and $78.4 million, or 0.40% of total loans as of December 31, 2025. Theallowance for credit losses on loans represented 135.20% of non-performing loans, compared to 123.84% at December 31, 2025, and 186.21%at September 30, 2025. As of September 30, 2026, impaired loans totaled $126.2 million with related specific reserves of $6.6 million, compared with impaired loanstotaling $121.2 million with related specific reserves of $3.8 million as of June 30, 2026. As of December 31, 2025, impaired loans totaled $63.3million with related specific reserves of $5.9 million. As of September 30, 2026, the Company’s allowance for credit losses related to the loan portfolio was 0.94% of total loans, compared to 0.92%and 0.95% as of June 30, 2026 and December 31, 2025, respectively. The allowance for credit losses increased $4.7 million to $189.5 million as ofSeptember 30, 2026, from $184.8 million as of December 31, 2025. The increase in the allowance for credit losses on loans as of September 30,2026 compared to December 31, 2025 was due to a $12.1 million provision for credit losses on loans, partially offset by net charge-offs of $7.4million. The following table sets forth accruing past due loans and non-accrual loans held for investment on the dates indicated, as well as delinquencystatistics and certain asset quality ratios. September 30, 2026 June 30, 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 4 $ 1,561 3 $ 2,301 8 $ 15,652 Multi-family mortgage loans — — 1 1,570 — — Construction loans — — — — — — Residential mortgage loans 39 9,926 27 6,393 34 8,344 Total mortgage loans 43 11,487 31 10,264 42 23,996 Commercial loans 2 187 5 1,474 9 1,303 Consumer loans 52 3,559 31 1,401 49 2,209 Total 30 to 59 days past due 97 $ 15,233 67 $ 13,139 100 $ 27,508 60 to 89 days past due: Commercial mortgage loans 1 $ 190 — $ — — $ — Multi-family mortgage loans — — — — 1 932 Construction loans — — — — — — Residential mortgage loans 20 5,731 20 5,929 16 4,177 Total mortgage loans 21 5,921 20 5,929 17 5,109 Commercial loans 4 477 4 828 3 633 Consumer loans 16 792 13 1,577 14 781 Total 60 to 89 days past due 41 7,190 37 8,334 34 6,523 Total accruing past due loans 138 $ 22,423 104 $ 21,473 134 $ 34,031 Non-accrual: Commercial mortgage loans 6 $ 21,034 8 $ 21,338 11 $ 26,856 Multi-family mortgage loans 2 1,831 1 266 3 2,268 Construction loans 1 1,781 1 2,854 1 5,159 Residential mortgage loans 21 5,947 32 7,834 32 9,062 Total mortgage loans 30 30,593 42 32,292 47 43,345 (4)
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Commercial loans 77 107,691 71 103,383 28 33,219 Consumer loans 22 1,858 17 1,210 27 1,856 Total non-accrual loans 129 $ 140,142 130 $ 136,885 102 $ 78,420 Non-performing loans to totalloans held for investment 0.69% 0.68% 0.40% Allowance for loan losses tototal non-performing loans 135.20% 134.87% 235.61% Allowance for loan losses tototal loans 0.94% 0.92% 0.95% As of September 30, 2026 and December 31, 2025, the Company held foreclosed assets of $1.0 million and $2.0 million, respectively. Foreclosedassets as of September 30, 2026 was comprised of one commercial real estate property. Total non-performing assets at September 30, 2026increased $60.7 million to $141.1 million, or 0.55% of total assets, from $80.4 million, or 0.32% of total assets at December 31, 2025. Results of Operations Third quarter of 2026 compared to the second quarter of 2026: Net interest income Net interest income was $208.0 million, compared to $202.7 million. The increase was primarily due to originations of new loans at currentmarket rates and the favorable repricing of adjustable rate loans. Net interest margin was 3.50%, compared to 3.48%. The yield on interest-earning assets increased 7 basis points to 5.68%, while the cost ofinterest-bearing liabilities increased 8 basis points to 2.79%. The cost of total deposits, which includes non-interest bearing deposits, was 2.02%,compared to 1.92% for the trailing quarter. Average loans totaled $19.88 billion, an increase of $311.9 million, or 6.37%, primarily due to strong growth within our total commercialportfolio in the quarter. Average total deposits totaled $20.03 billion compared to $19.23 billion. Provision for credit losses The provision for credit losses was $5.2 million, compared to $9.3 million. The provision for credit losses in the current quarter consisted of a$7.2 million provision related to loans, partially offset by a $2.0 million recapture of provision related to off-balance sheet credit exposures,compared with a $9.6 million of provision for credit losses on loans, partially offset by a $248,000 recapture of provision related to off-balancesheet credit exposures. The additional provision for credit losses on loans in the current quarter was primarily due to an increase in specificreserves on individually evaluated loans, combined with overall growth in the loan portfolio. Net charge-offs were $2.4 million, compared to $1.9 million, while the ratio of net charge-offs to average loans was 0.05%, compared to 0.04%. Non-interest income and non-interest expense Total non-interest income was $30.5 million, compared to $32.0 million, a decrease of $1.4 million. The decrease was primarily driven by a $2.0million decrease in fee income, a $1.4 million decrease in other income, and a $935,000 decrease in insurance agency income, partially offset bya $2.7 million increase in BOLI income. The decrease in fee income was primarily related to decreases in loan related fee income and depositfee income. The decrease in other income was primarily related to decreases in other securities and swap-related fee income, while thedecrease in insurance agency income was mainly due to normal seasonality of business activity in the current quarter. The increase in BOLIincome was primarily related to an increase in benefit claims. Total non-interest expense was $140.7 million, compared to $119.3 million, an increase of $21.4 million. The increase was mainly due to a $17.5million loss related to the extinguishment of subordinated debt, a $2.2 million increase related to costs associated with our successful coresystem conversion, and a $1.0 million increase in data processing expense, which was primarily due to an increase in software maintenanceexpense. The Company’s annualized core non-interest expense as a percentage of average assets totaled 1.84%, compared to 1.85%. The coreefficiency ratio (core non-interest expense divided by the sum of net interest income and core non-interest income)was 49.93%, compared to49.75%. Income tax expense Income tax expense was $23.5 million with an effective tax rate of 25.3%, compared to $27.9 million with an effective tax rate of 26.3%. Thedecrease in income tax expense was primarily related to a decrease in pre-tax book income, combined with discrete items related to benefitsassociated with carry-back tax credits. The effective tax rate change was primarily related to the aforementioned discrete items. Third quarter of 2026 compared to the third quarter of 2025: Net interest income Net interest income was $208.0 million, compared to $194.3 million. The increase was primarily due to originations of new loans at currentmarket rates, combined with favorable repricing of deposits. (6) (7)
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Net interest margin was 3.50%, compared to 3.43%. The yield on interest-earning assets was unchanged at 5.68%, while the cost of interest-bearing liabilities decreased 17 basis points to 2.79%. The cost of total deposits, which includes non-interest bearing deposits, was 2.02%,compared to 2.10%, for the same period last year. Average loans totaled $19.88 billion, an increase of $974.4 million, or 5.15%, primarily due to strong loan growth in the quarter. Average total deposits totaled $20.03 billion, an increase of $1.61 billion, or 8.72%. Provision for credit losses The provision for credit losses was $5.2 million, compared to $7.0 million. The provision for credit losses in the current quarter consisted of a$7.2 million provision related to loans, partially offset by a $2.0 million recapture of provision related to off-balance sheet credit exposures,compared with a $4.5 million and a $2.5 million provision for credit losses on loans and off-balance sheet credit exposures. The increase in theprovision for credit losses was primarily due to an increase in specific reserves on individually evaluated loans, combined with overall growth inthe loan portfolio. Net charge-offs were $2.4 million, compared to $5.4 million, while the ratio of net charge-offs to average loans was 0.05%, compared to 0.11%. Non-interest income and non-interest expense Total non-interest income was $30.5 million, compared to $27.4 million, an increase of $3.1 million. The increase was primarily driven by a $3.8million increase in BOLI income and an $803,000 increase in insurance agency income, partially offset by a $1.1 million decrease in fee income. The increase in BOLI income was primarily related to an increase in benefit claims, while the increase in insurance agency income was due to anincrease in business activity in the current quarter. The decrease in fee income was primarily related to a decrease in loan related fee income. Total non-interest expense was $140.7 million, compared to $113.1 million, an increase of $27.6 million. The increase was primarily driven by a$17.5 million loss related to the extinguishment of subordinated debt, a $4.8 million increase in compensation and benefits expense, partiallydue to increases in salary expense, combined with increases in employee medical benefits and incentive-based compensation expenses, $3.7million related to costs associated with our core system conversion, a $1.3 million increase in data processing expense and a $969,000 increasein other non-interest expense, partially offset by a $934,000 decrease in amortization of intangibles primarily due to a scheduled reduction inthe rate of core deposit intangible amortization related to the merger with Lakeland Bancorp, Inc. The increase in data processing expense wasprimarily due to an increase in software maintenance expense, while the increase in other non-interest expense was due to increases in loancollection and business development expenses. The Company’s annualized core non-interest expense as a percentage of average assets totaled 1.84%, compared to 1.83%. The coreefficiency ratio (core non-interest expense divided by the sum of net interest income and core non-interest income)was 49.93%, compared to51.01%. Income tax expense Income tax expense was $23.5 million, compared to $29.9 million, while the effective tax rate was 25.3%, compared to 29.4%. The decrease inincome tax expense was primarily related to a decrease in pre-tax book income, combined with discrete items related to benefits associatedwith carry-back tax credits. The effective tax rate change was primarily related to the aforementioned discrete items. 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 NewJersey, Bucks, Lehigh and Northampton counties in Pennsylvania, as well as Orange, Queens and Nassau Counties in New York. The Bank alsoprovides fiduciary and wealth management 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, October 29, 2026 at 10:00 a.m. Eastern Time to discuss theCompany’s financial results for the quarter ended September 30, 2026. The call may be accessed by dialing 1-833-461-5787 (United States Toll Free)and 1-626-884-3620 (United States Local). Speakers will need to enter meeting ID code (178 464 522) before being met by a live operator. Internetaccess to the call is also available (listen only) at provident.bank by going to Investor Relations and clicking on "Webcast." A supplemental 3rd 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-lookingstatements 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 AnnualReport on Form 10-K, as supplemented by its Quarterly Reports on Form 10-Q, and those related to the economic environment, particularly in themarket areas in which the Company operates, inflation and unemployment, competitive products and pricing, real estate values, fiscal and monetarypolicies of the U.S. Government, tariffs, changes in accounting policies and practices that may be adopted by the regulatory agencies and theaccounting 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 actualresults for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. (6) (7)
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The Company does not assume any duty, and does not undertake, to update any forward-looking statements to reflect events or circumstances afterthe date of this statement. Non-GAAP Financial Measures Core net income, pre-provision, net-revenue annualized core return on average assets, annualized return on average tangible equity, tangiblecommon equity capital ratio, tangible book value per share, annualized core non-interest expense as a percentage of average assets and the coreefficiency ratio are non-GAAP financial measures. Please refer to the Notes following the Consolidated Financial Highlights which contain thereconciliation of GAAP to non-GAAP financial measures and the associated calculations. PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY Consolidated Statements of Financial Condition September 30, 2026 (Unaudited) and December 31, 2025 (Dollars in Thousands) Assets September 30,2026 December 31,2025 Cash and cash equivalents $ 266,002 $ 211,484 Available for sale debt securities, at fair value 3,284,350 3,164,756 Held to maturity debt securities, (net of $22,000 allowance as of September 30, 2026 (unaudited) and$16,000 allowance as of December 31, 2025) 257,084 282,127 Equity securities, at fair value 19,706 19,875 Federal Home Loan Bank stock 128,937 115,687 Loans held for sale 5,632 14,710 Loans held for investment 20,170,070 19,504,061 Less allowance for credit losses 189,469 184,767 Net loans 19,986,233 19,334,004 Foreclosed assets, net 963 2,015 Banking premises and equipment, net 115,748 113,328 Accrued interest receivable 102,095 95,798 Intangible assets 756,453 782,152 Bank-owned life insurance 405,423 414,371 Other assets 524,465 445,113 Total assets $ 25,847,459 $ 24,980,710 Liabilities and Stockholders' Equity Deposits: Demand deposits $ 15,130,297 $ 14,402,148 Savings deposits 1,451,633 1,589,259 Certificates of deposit 3,224,905 3,287,276 Total deposits 19,806,835 19,278,683 Mortgage escrow deposits 45,824 40,253 Borrowed funds 2,390,788 2,111,955 Subordinated debentures 429,464 406,582 Other liabilities 310,057 310,025 Total liabilities 22,982,968 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 130,420,025shares outstanding as of September 30, 2026 and 130,619,949 outstanding as of December 31, 2025 1,376 1,376 (1)
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Additional paid-in capital 1,852,824 1,844,949 Retained earnings 1,288,062 1,154,364 Accumulated other comprehensive loss (174,940) (76,183) Treasury stock (102,831) (91,294) Total stockholders' equity 2,864,491 2,833,212 Total liabilities and stockholders' equity $ 25,847,459 $ 24,980,710 PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY Consolidated Statements of Income Three months ended September 30, 2026, June 30, 2026 and September 30, 2025, and nine months ended September 30, 2026 and 2025(Unaudited) (Dollars in Thousands, except per share data) Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, September 30, 2026 2026 2025 2026 2025 Interest and dividend income: Real estate secured loans $ 203,496 $ 195,381 $ 197,252 $ 590,380 $ 577,097 Commercial loans 84,026 82,757 81,943 244,685 236,616 Consumer loans 10,074 9,953 10,847 29,927 31,470 Available for sale debt securities, equitysecurities and Federal Home Loan Bank stock 38,202 35,975 33,578 107,460 94,666 Held to maturity debt securities 1,737 1,778 1,897 5,309 5,859 Deposits, federal funds sold and other short-term investments 736 751 764 2,173 2,227 Total interest income 338,271 326,595 326,281 979,934 947,935 Interest expense: Deposits 101,856 91,803 102,094 285,595 295,771 Borrowed funds 19,303 23,730 21,307 64,044 63,555 Subordinated debt 9,104 8,382 8,548 25,862 25,455 Total interest expense 130,263 123,915 131,949 375,501 384,781 Net interest income 208,008 202,680 194,332 604,433 563,154 Provision for credit losses 5,240 9,334 7,044 12,458 4,794 Net interest income after provision for creditlosses 202,768 193,346 187,288 591,975 558,360 Non-interest income: Fees 10,286 12,259 11,336 33,009 31,727 Wealth management income 7,825 7,517 7,349 22,745 21,625 Insurance agency income 4,737 5,672 3,934 17,392 14,732 Bank-owned life insurance 6,479 3,798 2,662 14,311 7,340 Net gain (loss) on securities transactions 87 (309) 67 (222) 153 Gain on sale of SBA loans 450 945 512 2,139 1,822 Other income 662 2,091 1,559 4,579 4,125 Total non-interest income 30,526 31,973 27,419 93,953 81,524
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Non-interest expense: Compensation and employee benefits 67,958 67,289 63,202 201,443 188,817 Net occupancy expense 13,160 12,464 12,773 40,609 39,711 Data processing expense 10,369 9,388 9,102 29,403 28,305 FDIC Insurance 3,155 3,155 3,418 9,150 10,144 Amortization of intangibles 8,563 8,559 9,497 25,685 28,496 Advertising and promotion expense 1,885 1,513 1,640 4,336 4,124 Core systems conversion expense 3,661 1,508 — 5,169 — Loss on extinguishment of debt 17,501 — — 17,501 — Other operating expenses 14,429 15,382 13,460 43,786 44,376 Total non-interest expense 140,681 119,258 113,092 377,082 343,973 Net income before income tax expense 92,613 106,061 101,615 308,846 295,911 Income tax expense 23,454 27,914 29,895 82,122 88,182 Net income $ 69,159 $ 78,147 $ 71,720 $ 226,724 $ 207,729 Basic earnings per share $ 0.53 $ 0.60 $ 0.55 $ 1.74 $ 1.59 Average basic shares outstanding 130,389,735 130,330,787 130,506,517 130,410,584 130,439,534 Diluted earnings per share $ 0.53 $ 0.60 $ 0.55 $ 1.74 $ 1.59 Average diluted shares outstanding 130,417,843 130,388,396 130,553,819 130,464,809 130,479,443 PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY Net Interest Margin Analysis Quarterly Average Balances (Dollars in Thousands) (Unaudited) September 30, 2026 June 30, 2026 September 30, 2025 AverageBalance Interest AverageYield/Cost AverageBalance Interest AverageYield/Cost AverageBalance Interest AverageYield/Cost Interest-Earning Assets: Deposits $ 77,799 $ 736 3.72% $ 73,162 $ 751 4.09% $ 79,471 $ 764 3.82% Available for sale debtsecurities 3,329,680 35,888 4.31% 3,272,868 33,637 4.11% 3,070,080 30,952 4.03% Held to maturity debtsecurities, net 257,990 1,737 2.69% 266,727 1,778 2.67% 299,506 1,897 2.53% Equity securities, at fair value 20,027 126 2.52% 19,986 123 2.46% 19,457 120 2.47% Total securities 3,607,697 37,751 4.18% 3,559,581 35,538 3.99% 3,389,043 32,969 3.89% Federal Home Loan Bankstock 108,706 2,188 7.87% 132,390 2,215 6.62% 116,788 2,506 8.58% Net loans: Total mortgage loans 13,843,143 203,496 5.84% 13,636,285 195,381 5.75% 13,390,032 197,252 5.85% Total commercial loans 5,433,585 84,026 6.14% 5,327,395 82,757 6.23% 4,908,131 81,943 6.63% Total consumer loans 604,410 10,074 6.61% 605,579 9,953 6.59% 608,600 10,847 7.07% Total net loans 19,881,138 297,596 5.94% 19,569,259 288,091 5.90% 18,906,763 290,042 6.09% Total interest-earning assets$23,675,340 $338,271 5.68% $23,334,392 $326,595 5.61% $22,492,065 $326,281 5.76% (1) (2)
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Non-Interest Earning Assets: Cash and due from banks 151,192 162,746 154,859 Other assets 1,819,515 1,800,478 1,871,366 Total assets $25,646,047 $25,297,616 $24,518,290 Interest-Bearing Liabilities: Demand deposits$11,338,331 $72,205 2.53% $10,674,922 $63,736 2.39% $10,280,314 $70,584 2.72% Savings deposits 1,532,983 791 0.20% 1,599,622 814 0.20% 1,596,072 896 0.22% Time deposits 3,303,541 28,860 3.47% 3,236,519 27,253 3.38% 3,287,241 30,614 3.69% Total deposits 16,174,855 101,856 2.50% 15,511,063 91,803 2.37% 15,163,627 102,094 2.67% Borrowed funds 1,911,917 19,303 4.01% 2,435,404 23,730 3.91% 2,136,111 21,307 3.96% Subordinated debentures 448,066 9,104 8.06% 408,260 8,382 8.23% 404,548 8,548 8.38% Total interest-bearingliabilities 18,534,838 130,263 2.79% 18,354,727 123,915 2.71% 17,704,286 131,949 2.96% Non-Interest BearingLiabilities: Non-interest bearing deposits 3,850,952 3,716,104 3,725,645 Other non-interest bearingliabilities 337,171 329,223 349,945 Total non-interest bearingliabilities 4,188,123 4,045,327 4,075,590 Total liabilities 22,722,961 22,400,054 21,779,876 Stockholders' equity 2,923,086 2,897,562 2,738,414 Total liabilities andstockholders' equity$25,646,047 $25,297,616 $24,518,290 Net interest income $208,008 $202,680 $194,332 Net interest rate spread 2.89% 2.90% 2.80% Net interest-earning assets$5,140,502 $4,979,665 $4,787,779 Net interest margin 3.50% 3.48% 3.43% Ratio of interest-earning assetsto total interest-bearingliabilities 1.28x 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 andinclude 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)
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9/30/26 6/30/26 3/31/26 12/31/25 9/30/25 3rd Qtr. 2nd Qtr. 1st Qtr. 4th Qtr. 3rd Qtr. Interest-Earning Assets: Securities 4.18% 3.99% 3.80% 3.87% 3.89% Net loans 5.94% 5.90% 5.85% 5.98% 6.09% Total interest-earning assets 5.68% 5.61% 5.53% 5.66% 5.76% Interest-Bearing Liabilities: Deposits 2.50% 2.37% 2.39% 2.60% 2.67% Borrowings 4.01% 3.91% 3.90% 3.94% 3.96% Total interest-bearing liabilities 2.79% 2.71% 2.71% 2.83% 2.96% Interest rate spread 2.89% 2.90% 2.82% 2.83% 2.80% Net interest margin 3.50% 3.48% 3.40% 3.44% 3.43% Ratio of interest-earning assets to interest-bearingliabilities 1.28x 1.27x 1.27x 1.28x 1.27x PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY Net Interest Margin Analysis Average Year to Date Balances (Dollars in Thousands) (Unaudited) September 30, 2026 September 30, 2025 Average Average Average Average Balance Interest Yield/Cost Balance Interest Yield/Cost Interest-Earning Assets: Deposits $ 75,855 $ 2,173 3.83% $ 78,434 $ 2,227 4.21% Available for sale debtsecurities 3,273,782 100,983 4.11% 2,952,923 87,530 3.95% Held to maturity debtsecurities, net 266,129 5,309 2.66% 311,507 5,859 2.51% Equity securities, at fair value 20,001 370 2.46% 19,294 469 3.24% Total securities 3,559,912 106,662 3.99% 3,283,724 93,858 3.81% Federal Home Loan Bankstock 120,422 6,107 6.76% 119,503 6,667 7.48% Net loans: Total mortgage loans 13,691,826 590,380 5.76% 13,362,561 577,097 5.77% Total commercial loans 5,306,577 244,685 6.16% 4,803,599 236,616 6.59% Total consumer loans 605,173 29,927 6.61% 609,979 31,470 6.90% Total net loans 19,603,576 864,992 5.90% 18,776,139 845,183 6.02% Total interest-earning assets$ 23,359,765 $ 979,934 5.61% $ 22,257,800 $ 947,935 5.69% Non-Interest Earning Assets: Cash and due from banks 161,604 146,568 Other assets 1,804,260 1,908,122 (1) (2)
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Total assets $ 25,325,629 $ 24,312,490 Interest-Bearing Liabilities: Demand deposits$ 10,926,221 $ 199,300 2.44% $ 10,084,036 $ 200,819 2.66% Savings deposits 1,579,450 2,444 0.21% 1,641,821 2,720 0.22% Time deposits 3,257,273 83,851 3.44% 3,228,399 92,232 3.82% Total deposits 15,762,944 285,595 2.42% 14,954,256 295,771 2.64% Borrowed funds 2,176,348 64,044 3.93% 2,182,319 63,555 3.89% Subordinated debentures 421,265 25,862 8.21% 403,299 25,455 8.44% Total interest-bearingliabilities $ 18,360,557 $ 375,501 2.73% $ 17,539,874 $ 384,781 2.93% Non-Interest BearingLiabilities: Non-interest bearing deposits 3,737,976 3,715,008 Other non-interest bearingliabilities 328,993 370,224 Total non-interest bearingliabilities 4,066,969 4,085,232 Total liabilities 22,427,526 21,625,106 Stockholders' equity 2,898,103 2,687,384 Total liabilities andstockholders' equity$ 25,325,629 $ 24,312,490 Net interest income $ 604,433 $ 563,154 Net interest rate spread 2.88% 2.76% Net interest-earning assets$ 4,999,208 $ 4,717,926 Net interest margin 3.46% 3.38% Ratio of interest-earning assetsto total interest-bearingliabilities 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 andinclude 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. Nine Months Ended September 30,2026 September 30,2025 September 30,2024 (3)
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Interest-Earning Assets: Securities 3.99% 3.81% 3.10% Net loans 5.90% 6.02% 5.99% Total interest-earning assets 5.61% 5.69% 5.61% Interest-Bearing Liabilities: Deposits 2.42% 2.64% 2.84% Borrowings 3.93% 3.89% 3.73% Total interest-bearing liabilities 2.73% 2.93% 3.06% Interest rate spread 2.88% 2.76% 2.55% Net interest margin 3.46% 3.38% 3.18% Ratio of interest-earning assets to interest-bearing liabilities 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) financial measures because it believes thatthese 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-GAAPfinancial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Company’sindustry. 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 theCompany strongly encourages a review of its condensed consolidated financial statements in their entirety. (1) Core Net Income Three monthsEnded Nine monthsEnded September 30, September 30, 2026 2026 Net interest income $ 208,008 $ 604,433 Provision for loan losses 5,240 12,458 Net interest income after provision forloan losses $ 202,768 $ 591,975 Non-interest income 30,526 93,953 Non-interest expense $ 140,681 $ 377,082 Loss on extinguishment of debt 17,501 17,501 Executive severance expense — 864 Core system conversion expense 3,661 5,169 Restructuring expenses 465 465 Core non-interest expense $ 119,054 $ 353,083 Income taxes 23,454 82,122 Income tax of non-core items 6,508 7,221 Core net income $ 84,278 $ 243,502
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Avg. diluted shares outstanding for the3 and 9 months ended September 30,2026 130,417,843 130,464,809 Core diluted earnings per share $ 0.65 $ 1.87 (2) Annualized core pre-provision netrevenue ("PPNR") returns on averageassets, average equity and averagetangible equity Three Months Ended September 30, June 30, March 31, December 31, September 30, 2026 2026 2026 2025 2025 Net income $ 69,159 $ 78,147 $ 79,417 $ 83,431 $ 71,720 Adjustments to net income: Provision for credit losses 5,240 9,334 (2,116) (1,213) 7,044 Loss on extinguishment of debt 17,501 — — — — Executive severance expense — 864 — — — Core system conversion expense 3,661 1,508 — — — Restructuring expenses 465 — — — — Income tax expense 23,454 27,914 30,754 28,814 29,895 Core PPNR $ 119,480 $ 117,767 $ 108,055 $ 111,032 $ 108,659 Annualized core PPNR income $ 474,024 $ 472,362 $ 438,223 $ 440,507 $ 431,093 Add.: Amortization of Intangibles $ 8,563 $ 8,559 $ 8,563 $ 8,578 $ 9,497 Annualized Amortization of Intangibles $ 33,973 $ 34,330 $ 34,728 $ 34,032 $ 37,678 Annualized Core PPNR earnings inclamortization of intangibles $ 507,997 $ 506,692 $ 472,951 $ 474,540 $ 468,771 Core diluted earnings per share $ 130,417,843 $ 130,388,396 $ 130,588,635 $ 130,589,271 $ 130,553,819 Core PPNR Diluted EPS $ 0.92 $ 0.90 $ 0.83 $ 0.85 $ 0.83 Average assets $ 25,646,047 $ 25,297,616 $ 25,026,414 $ 24,775,214 $ 24,518,290 Average equity $ 2,923,086 $ 2,897,562 $ 2,873,113 $ 2,810,166 $ 2,738,414 Average tangible equity $ 2,160,972 $ 2,126,989 $ 2,093,975 $ 2,022,451 $ 1,941,625 Annualized core PPNR return on averageassets 1.85% 1.87% 1.75% 1.78% 1.76% Annualized core PPNR return on averageequity 16.22% 16.30% 15.25% 15.68% 15.74% Annualized core PPNR return on averagetangible equity 23.51% 23.82% 22.59% 23.46% 24.14% (3) Annualized Core Return on AverageAssets, Average Equity and AverageTangible Equity For the Quarter Ended September 30, June 30, March 31, December 31, September 30,
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2026 2026 2026 2025 2025 Net Income $ 69,159 $ 78,147 79,417 83,431 $ 71,720 Loss on extinguishment of debt 17,501 — — — — Executive severance expense — 864 — — — Core system conversion expense 3,661 1,508 — — — Restructuring expenses 465 — — — — Less: income tax expense (6,508) (714) — — — Annualized core net income $ 84,278 79,805 79,417 83,431 71,720 Plus: Amortization of Intangibles (netof tax) 5,986 5,984 5,986 5,997 6,639 Annualized core net income forannualized core return on averagetangible equity $ 90,264 $ 85,789 $ 85,403 $ 89,428 $ 78,359 Average assets $ 25,646,047 $ 25,297,616 $ 25,026,414 $ 24,775,214 $ 24,518,290 Average equity $ 2,923,086 $ 2,897,562 $ 2,873,113 $ 2,810,166 $ 2,738,414 Average tangible equity $ 2,160,972 $ 2,126,989 $ 2,093,975 $ 2,022,451 $ 1,941,625 Annualized Core Return on AverageAssets 1.30% 1.27% 1.29% 1.34% 1.16% Annualized Core Return on AverageEquity 11.44% 11.05% 11.21% 11.78% 10.39% Annualized Core Return on AverageTangible Equity 16.57% 16.18% 16.54% 17.54% 16.01% (4) Tangible Common Equity Ratio, Bookand Tangible Book Value per Share Three Months Ended September 30, June 30, March 31, December 31, September 30, 2026 2026 2026 2025 2025 Total assets $ 25,847,459 $ 25,663,358 $ 25,201,690 $ 24,980,710 $ 24,832,763 Less: total intangible assets 756,453 765,019 773,585 782,152 790,729 Total tangible assets $ 25,091,006 $ 24,898,339 $ 24,428,105 $ 24,198,558 $ 24,042,034 Total stockholders' equity $ 2,864,491 $ 2,906,985 $ 2,862,869 $ 2,833,212 $ 2,767,035 Less: total intangible assets 756,453 765,019 773,585 782,152 790,729 Total tangible stockholders' equity $ 2,108,038 $ 2,141,966 $ 2,089,284 $ 2,051,060 $ 1,976,306 Tangible common equity ratio 8.40% 8.60% 8.55% 8.48% 8.22% Shares outstanding 130,420,025 $ 130,423,051 $ 130,311,796 $ 130,619,949 $ 130,621,757 Book value per share (total stockholders'equity/shares outstanding) $ 21.96 $ 22.29 $ 21.97 $ 21.69 $ 21.18 Tangible book value per share (totaltangible stockholders' equity/sharesoutstanding) $ 16.16 $ 16.42 $ 16.03 $ 15.70 $ 15.13
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(5) Annualized Return on AverageTangible Equity Three Months Ended September 30, June 30, March 31, December 31, September 30, 2026 2026 2026 2025 2025 Total average stockholders' equity $ 2,923,086 $ 2,897,562 $ 2,873,113 $ 2,810,166 $ 2,738,414 Less: total average intangible assets 762,114 770,573 779,138 787,715 796,789 Total average tangible stockholders'equity $ 2,160,972 $ 2,126,989 $ 2,093,975 $ 2,022,451 $ 1,941,625 Net income $ 69,159 $ 78,147 $ 79,417 $ 83,431 $ 71,720 Plus: Amortization of Intangibles, net oftax 5,986 $ 5,984 $ 5,986 $ 5,997 $ 6,639 Total net income $ 75,145 $ 84,131 $ 85,403 $ 89,428 $ 78,359 Annualized return on average tangibleequity (net income/total averagetangible stockholders' equity) 13.80% 15.87% 16.54% 17.54% 16.01% (6) Annualized Core Non-InterestExpense to Average Assets Three Months Ended September 30, June 30, March 31, December 31, September 30, 2026 2026 2026 2025 2025 Reported non-interest expense $ 140,681 $ 119,258 $ 117,141 $ 114,690 $ 113,092 Adjustments to non-interest expense: Loss on extinguishment of debt 17,501 — — — — Executive severance expense — 864 — — — Core system conversion expense 3,661 1,508 — — — Restructuring expenses 465 — — — — Core non-interest expense $ 119,054 $ 116,886 $ 117,141 $ 114,690 $ 113,092 Annualized core non-interest expense $ 472,334 $ 468,828 $ 475,072 $ 455,020 $ 448,680 Average assets $ 25,646,047 $ 25,297,616 $ 25,026,414 $ 24,775,214 $ 24,518,290 Annualized core non-interestexpense/average assets 1.84% 1.85% 1.90% 1.84% 1.83% (7) Core Efficiency Ratio Calculation Three Months Ended September 30, June 30, March 31, December 31, September 30, 2026 2026 2026 2025 2025 Net interest income $ 208,008 $ 202,680 $ 193,743 $ 197,411 $ 194,332 Reported non-interest income 30,526 31,973 31,453 28,311 27,419 Adjustments to non-interest income: Net (gain) loss on securitiestransactions (87) 309 — (690) (67)
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Core non-interest income 30,439 32,282 31,453 27,621 27,352 Total core income $ 238,447 234,962 225,196 225,032 221,684 Core non-interest expense $ 119,054 116,886 117,141 114,690 113,092 Core Efficiency ratio (core non-interestexpense/core income) 49.93% 49.75% 52.02% 50.97% 51.01% SOURCE: Provident Financial Services, Inc.CONTACT: Investor Relations, 1-732-590-9300Web Site: http://www.Provident.Bank Source: Provident Financial Services, Inc. Copyright 2026, © Powered By Q4 Inc.