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FALSE000117897000011789702024-04-182024-04-18

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 18, 2024
PROVIDENT FINANCIAL SERVICES, INC.
(Exact Name of Registrant as Specified in its Charter)
Delaware
001-31566
42-1547151
(State or Other Jurisdiction of Incorporation)
(Commission File No.)
(I.R.S. Employer Identification No.)
239 Washington Street, Jersey City, New Jersey
07302
(Address of Principal Executive Offices)
(Zip Code)
Registrant's telephone number, including area code 732-590-9200

Not Applicable
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol
Symbol(s)
Name of each exchange on which registered
Common
PFS
New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02    Results of Operation and Financial Condition.

On April 18, 2024, Provident Financial Services, Inc. (the “Company”) issued a press release reporting its financial results for the three months ended March 31, 2024. A copy of the press release is attached as Exhibit 99.1 to this report and is being furnished to the SEC and shall not be deemed “filed” for any purpose.


Item 7.01    Regulation FD Disclosure.

On April 18, 2024, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.24 per common share, payable on May 31, 2024, to stockholders of record as of the close of business on April 29, 2024.

This announcement was included as part of the press release announcing financial results for the three months ended March 31, 2024 and attached as Exhibit 99.1 to this report. A copy of the press release is being furnished to the SEC and shall not be deemed “filed” for any purpose.


Item 9.01.    Financial Statements and Exhibits

(a)     Financial Statements of Businesses Acquired. Not applicable.

(b)    Pro Forma Financial Information. Not applicable.

(c)     Shell Company Transactions. Not applicable.

(d)    Exhibits.

Exhibit No.        Description

99.1    Press release issued by the Company on April 18, 2024 announcing its financial results for the three months ended March 31, 2024 and the declaration of a quarterly cash dividend.

104    Cover Page Interactive Data File (embedded within the Inline XBRL document)




















SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.



PROVIDENT FINANCIAL SERVICES, INC.
DATE:
 April 19, 2024 By: /s/ Anthony J. Labozzetta
Anthony J. Labozzetta
President and Chief Executive Officer









EX-99.1 2 a033124earningsrelease.htm EX-99.1 Document

Provident Financial Services, Inc. Announces First Quarter Earnings
and Declares Quarterly Cash Dividend

ISELIN, NJ, April 18, 2024 - Provident Financial Services, Inc. (NYSE:PFS) (the “Company”) reported net income of $32.1 million, or $0.43 per basic and diluted share for the three months ended March 31, 2024, compared to $27.3 million, or $0.36 per basic and diluted share, for the three months ended December 31, 2023 and $40.5 million, or $0.54 per basic and diluted share, for the three months ended March 31, 2023. Net income for the trailing quarter ended December 31, 2023 was negatively impacted by a $3.0 million charge for contingent litigation reserves and a $2.0 million write-down of a foreclosed property. Transaction costs related to our pending merger with Lakeland Bancorp, Inc. (“Lakeland”) totaled $2.2 million for the three months ended March 31, 2024, compared with $2.5 million in the trailing quarter and $1.1 million for the respective 2023 period. In addition, prior year earnings for the three months ended March 31, 2023, included a $2.0 million gain recognized from the sale of a foreclosed commercial property.
Performance Highlights for the First Quarter of 2024
•The Company’s total commercial and industrial ("C&I") loan portfolio increased $72.1 million, or 11.5% annualized, to $2.51 billion as of March 31, 2024, from $2.44 billion as of December 31, 2023.
•Net interest income decreased $2.1 million to $93.7 million for the three months ended March 31, 2024, from $95.8 million for the trailing quarter as a result of one fewer day in the current quarter and higher funding costs, which more than offset the benefits of favorable loan repricing.
•The net interest margin decreased five basis points to 2.87% for the quarter ended March 31, 2024, from 2.92% for the trailing quarter.
•The weighted average yield on interest-earning assets for the quarter ended March 31, 2024 increased two basis points to 5.06%, compared to the trailing quarter, while the weighted average cost of interest-bearing liabilities for the quarter ended March 31, 2024 increased nine basis points to 2.80%, compared to the trailing quarter. The increase in funding costs was attributable to a decrease in lower-costing deposits, an increase in average borrowings and unfavorable repricing of deposits, reflective of current market conditions.
•As of March 31, 2024, the Company's loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $1.08 billion, with a weighted average interest rate of 7.42%, compared to $1.09 billion, with a weighted average interest rate of 7.08% as of December 31, 2023.
•Asset quality improved in the quarter, as non-performing loans as of March 31, 2024 declined to $47.6 million, or 0.44% of total loans, compared to $49.6 million, or 0.46% of total loans as of December 31, 2023. Criticized and classified loans fell to $226.3 million, or 2.09% of loans as of March 31, 2024, from $241.3 million, or 2.22% of loans as of December 31, 2023.
•As of March 31, 2024, CRE loans related to office properties totaled $483.9 million, compared to $483.1 million as of December 31, 2023. This portfolio constitutes only 4.5% of total loans and has an average loan size of $1.9 million, with just four relationships greater than $10.0 million. Approximately 41.0% of the Company's office loans are to medical offices and the portfolio does not have significant central business district exposure. Delinquencies in the office portfolio as of March 31, 2024 were limited to four loans totaling $5.9 million.
•As of March 31, 2024, Multi-family CRE loans on New York City properties totaled $188.7 million, compared to $186.8 million as of December 31, 2023. This portfolio constitutes only 1.7% of total loans and has an average loan size of $2.8 million. Approximately $117.4 million of these loans are collateralized by rent stabilized apartments and all are performing.
•The Company recorded a $200,000 provision for credit losses on loans for the quarter ended March 31, 2024, compared to a $500,000 provision for the trailing quarter. The decrease in the provision for credit losses for the quarter was primarily attributable to an improved economic forecast for the current quarter within our Current Expected Credit Loss ("CECL") model, partially offset by an increase in specific reserves on impaired credits. The allowance for credit losses as a percentage of loans decreased to 0.98% as of March 31, 2024, from 0.99% as of December 31, 2023.
1

•Wealth Management and Insurance Agency income increased 8.3% and 16.9%, respectively, versus the same period in 2023. Total non-interest income was 18.2% of net revenue for the quarter ended March 31, 2024.
•The Company's annualized adjusted pre-tax, pre-provision ("PTPP") return on average assets(1) was 1.28% for the quarter ended March 31, 2024, compared to 1.25% for the quarter ended December 31, 2023.
•Annualized returns on average assets, average equity and average tangible equity(1) were 0.92%, 7.60% and 10.40%, respectively for the three months ended March 31, 2024, compared with 0.77%, 6.60% and 9.15%, respectively for the trailing quarter.
Anthony J. Labozzetta, President and Chief Executive Officer commented, “Our first quarter results reflect strong operating performance and returns despite continuing pressure on funding costs and the net interest margin. Our team has performed admirably to manage through these conditions and continued to deliver exceptional customer service. Additionally, our asset quality remains strong and our credit risk is well managed, with limited exposure to the market segments of greatest concern in the current operating environment.”
Regarding the Company's pending merger with Lakeland, Mr. Labozzetta added, “We are delighted that all regulatory approvals required for the merger have been obtained and we are diligently moving forward with our subordinated debt offering which is a required closing condition of the merger. We are excited to complete the closing of the merger promptly to bring together two prominent high performing banks with like-minded cultures, unwavering commitment to employee and customer experience, a dedication to serving our communities, and a keen focus on financial performance and stockholder returns.”
Declaration of Quarterly Dividend
The Company’s Board of Directors declared a quarterly cash dividend of $0.24 per common share payable on May 31, 2024 to stockholders of record as of the close of business on April 29, 2024.
Results of Operations
Three months ended March 31, 2024 compared to the three months ended December 31, 2023
For the three months ended March 31, 2024, net income was $32.1 million, or $0.43 per basic and diluted share, compared to net income of $27.3 million, or $0.36 per basic and diluted share, for the three months ended December 31, 2023. Transaction costs related to our pending merger with Lakeland totaled $2.2 million and $2.5 million for the three months ended March 31, 2024 and December 31, 2023, respectively.
Net Interest Income and Net Interest Margin
Net interest income decreased $2.1 million to $93.7 million for the three months ended March 31, 2024, from $95.8 million for the trailing quarter. The decrease in net interest income reflected one fewer calendar day in the first quarter and a decrease in lower-costing deposits, combined with unfavorable repricing of deposits, partially offset by the favorable repricing of adjustable-rate loans.
The Company’s net interest margin decreased five basis points to 2.87% for the quarter ended March 31, 2024, from 2.92% for the trailing quarter. The weighted average yield on interest-earning assets for the quarter ended March 31, 2024 increased two basis points to 5.06%, compared to the trailing quarter. The weighted average cost of interest-bearing liabilities for the quarter ended March 31, 2024 increased nine basis points from the trailing quarter to 2.80%. The average cost of interest-bearing deposits for the quarter ended March 31, 2024 increased 13 basis points to 2.60%, compared to 2.47% for the trailing quarter. The average cost of total deposits, including non-interest-bearing deposits, was 2.07% for the quarter ended March 31, 2024, compared to 1.95% for the trailing quarter. The average cost of borrowed funds for the quarter ended March 31, 2024 was 3.60%, compared to 3.71% for the quarter ended December 31, 2023.
2

Provision for Credit Losses
For the quarter ended March 31, 2024, the Company recorded a $200,000 provision for credit losses on loans, compared with a provision for credit losses of $500,000 for the quarter ended December 31, 2023. The decrease in the provision for credit losses for the quarter was primarily attributable to an improved economic forecast for the current quarter within our CECL model, partially offset by an increase in specific reserves on impaired credits. For the three months ended March 31, 2024, net charge-offs totaled $971,000, or an annualized 4 basis points of average loans, compared with net charge-offs of $863,000, or an annualized 3 basis points of average loans, for the trailing quarter.
Non-Interest Income and Expense
For the three months ended March 31, 2024, non-interest income totaled $20.8 million, an increase of $1.8 million, compared to the trailing quarter. Insurance agency income increased $2.0 million to $4.8 million for the three months ended March 31, 2024, compared to the trailing quarter, mainly due to the receipt of contingent commissions and additional business in the current quarter. Wealth management income increased $645,000 to $7.5 million for the three months ended March 31, 2024, compared to the trailing quarter, mainly due to an increase in the average market value of assets under management during the period. Additionally, BOLI income increased $173,000 for the three months ended March 31, 2024, compared to the trailing quarter, primarily due to a benefit claim recognized in the current quarter. Partially offsetting these increases to non-interest income, other income decreased $829,000 to $798,000 for the three months ended March 31, 2024, compared to the trailing quarter, primarily due to a reduction in gains on the sale of SBA loans, while fee income decreased $190,000 to $5.9 million for the three months ended March 31, 2024, compared to the trailing quarter, primarily due to decreases in loan related fees and debit card income.
Non-interest expense totaled $71.3 million for the three months ended March 31, 2024, a decrease of $3.2 million, compared to $74.5 million for the trailing quarter. Other operating expense decreased $5.3 million to $10.3 million for the three months ended March 31, 2024, compared to $15.6 million for the trailing quarter, largely due to a prior quarter $3.0 million charge for contingent litigation reserves, combined with a prior quarter $2.0 million write-down of a foreclosed property. FDIC insurance decreased $618,000 to $2.3 million for the three months ended March 31, 2024, compared to the trailing quarter, primarily due to the FDIC special assessment of $775,000 recorded in the prior quarter, partially offset with a current quarter FDIC special assessment of $195,000. Additionally, merger expenses related to our pending merger with Lakeland decreased $275,000 to $2.2 million for the three months ended March 31, 2024, compared to the trailing quarter. Partially offsetting these decreases in non-interest expense, compensation and benefits expense increased $1.3 million to $40.0 million for the three months ended March 31, 2024, compared to $38.8 million for the trailing quarter. The increase in compensation and benefit expense was primarily due to increases in payroll taxes, employee medical benefits, stock-based compensation and salary expense, partially offset by a decrease in the accrual for incentive compensation. For the three months ended March 31, 2024, the Company recorded a $506,000 provision benefit for credit losses on off-balance sheet credit exposures, compared to a $1.4 million provision benefit for the trailing quarter. The provision benefits for credit losses on off-balance sheet credit exposures for both periods were primarily due to decreases in loans approved and awaiting closing. Additionally, net occupancy expense increased $723,000 to $8.5 million for the three months ended March 31, 2024, compared to the trailing quarter, largely due to seasonal increases in snow removal costs and Common Area Maintenance ("CAM") expense.
The Company’s annualized adjusted non-interest expense as a percentage of average assets(1) totaled 1.99% for both the quarter ended March 31, 2024 and the trailing quarter. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)(1) was 60.82% for the three months ended March 31, 2024, compared to 61.32% for the trailing quarter.
Income Tax Expense
For the three months ended March 31, 2024, the Company's income tax expense was $10.9 million with an effective tax rate of 25.3%, compared with income tax expense of $12.5 million with an effective tax rate of 31.3% for the trailing quarter. The decrease in tax expense for the three months ended March 31, 2024, compared with the trailing quarter was largely due to a decrease in taxable income, combined with a discrete item related to deferred taxes on stock-based compensation recorded in the prior quarter and the 2024 sunset of the 2.5% NJ Corporate Business Tax surcharge.
3

This prior quarter discrete item and the sunset of the 2.5% NJ Corporate Business Tax surcharge were also the primary reasons for the decrease in the effective tax rate for the three months ended March 31, 2024, compared with the trailing quarter.
Three months ended March 31, 2024 compared to the three months ended March 31, 2023
For the three months ended March 31, 2024, net income was $32.1 million, or $0.43 per basic and diluted share, compared to net income of $40.5 million, or $0.54 per basic and diluted share, for the three months ended March 31, 2023. Transaction costs related to our pending merger with Lakeland totaled $2.2 million and $1.1 million for the three months ended March 31, 2024 and March 31, 2023, respectively.
Net Interest Income and Net Interest Margin
Net interest income decreased $14.7 million to $93.7 million for the three months ended March 31, 2024, from $108.3 million for same period in 2023. The decrease in net interest income was primarily due to a decrease in lower-costing deposits and an increase in borrowings, combined with unfavorable repricing of both deposits and borrowings, partially offset by originations of new loans and the favorable repricing of adjustable-rate loans.
The Company’s net interest margin decreased 61 basis points to 2.87% for the quarter ended March 31, 2024, from 3.48% for the same period last year. The weighted average yield on interest-earning assets for the quarter ended March 31, 2024 increased 43 basis points to 5.06%, compared to 4.63% for the quarter ended March 31, 2023. The weighted average cost of interest-bearing liabilities increased 126 basis points for the quarter ended March 31, 2024 to 2.80%, compared to 1.54% for the first quarter of 2023. The average cost of interest-bearing deposits for the quarter ended March 31, 2024 was 2.60%, compared to 1.39% for the same period last year. Average non-interest-bearing demand deposits decreased $478.8 million to $2.07 billion for the quarter ended March 31, 2024, compared to $2.55 billion for the quarter ended March 31, 2023. The average cost of total deposits, including non-interest-bearing deposits, was 2.07% for the quarter ended March 31, 2024, compared with 1.05% for the quarter ended March 31, 2023. The average cost of borrowed funds for the quarter ended March 31, 2024 was 3.60%, compared to 2.48% for the same period last year.
Provision for Credit Losses
For the quarter ended March 31, 2024, the Company recorded a $200,000 provision for credit losses on loans, compared with a $6.0 million provision for credit losses for the quarter ended March 31, 2023. The decrease in the provision for credit losses was largely a function of the period-over-period improvement in the economic forecast. For the three months ended March 31, 2024, net charge-offs totaled $971,000, or an annualized 4 basis points of average loans, compared with net charge-offs of $671,000, or an annualized 3 basis points of average loans, for the quarter ended March 31, 2023.
Non-Interest Income and Expense
Non-interest income totaled $20.8 million for the quarter ended March 31, 2024, a decrease of $1.3 million, compared to the same period in 2023. Other income decreased $2.5 million to $798,000 for the three months ended March 31, 2024, compared to the quarter ended March 31, 2023, primarily due to a $2.0 million gain from the sale of a foreclosed commercial property which was recorded in the prior year, combined with a decrease in gains on sales of SBA loans. Fee income decreased $475,000 to $5.9 million for the three months ended March 31, 2024, compared to the prior year quarter, primarily due to decreases in commercial loan prepayment fees and deposit fee income. Partially offsetting these decreases in non-interest income, insurance agency income increased $691,000 to $4.8 million for the three months ended March 31, 2024, compared to the quarter ended March 31, 2023, largely due to an increase in business activity. Wealth management income increased $573,000 to $7.5 million for the three months ended March 31, 2024, compared to the quarter ended March 31, 2023, mainly due to an increase in the average market value of assets under management during the period, combined with an increase in mutual fund fees. Additionally, BOLI income increased $333,000 to $1.8 million three months ended March 31, 2024, compared to the prior year quarter, primarily due a benefit claim recognized in the current quarter, combined with an increase in equity valuations.
4

For the three months ended March 31, 2024, non-interest expense totaled $71.3 million, an increase of $1.8 million, compared to the three months ended March 31, 2023. Compensation and benefits expense increased $1.3 million to $40.0 million for three months ended March 31, 2024, compared to $38.7 million for the same period in 2023. The increase was primarily due to an increase in salary expense associated with Company-wide annual merit increases, combined with increases in the accrual for incentive compensation, payroll taxes and employee insurance, partially offset by a decrease in stock-based compensation. Data processing expense increased $1.3 million to $6.8 million for three months ended March 31, 2024, compared to $5.5 million for the same period in 2023. The increase in data processing expense was primarily due to increases in software service, telecommunication and electronic business banking expenses. Merger-related expenses related to our pending combination with Lakeland increased $1.1 million to $2.2 million for the three months ended March 31, 2024, compared to the same period in 2023. Additionally, FDIC insurance expense increased $335,000 to $2.3 million for the three months ended March 31, 2024, compared to the same period in 2023, primarily due to a current quarter FDIC special assessment of $195,000, combined with an increase in the assessment rate. Partially offsetting these increases in non-interest expense, other operating expense decreased $729,000 to $10.3 million for the three months ended March 31, 2024, compared to $11.1 million for the three months ended March 31, 2023, largely due to a decrease in professional fees, partially offset by additional expenses related to foreclosed commercial real estate properties. For the three months ended March 31, 2024, the Company recorded a $506,000 provision benefit for credit losses on off-balance sheet credit exposures, compared to a $739,000 provision charge for the same period in 2023. The $1.2 million decrease in the provision for credit losses on off-balance sheet credit exposures for the current quarter was primarily due to a decrease in loans approved and awaiting closing.
The Company’s annualized adjusted non-interest expense as a percentage of average assets(1) was 1.99% for the quarter ended March 31, 2024, compared to 2.00% for the same period in 2023. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)(1) was 60.82% for the three months ended March 31, 2024 compared to 51.85% for the same respective period in 2023.
Income Tax Expense
For the three months ended March 31, 2024, the Company's income tax expense was $10.9 million with an effective tax rate of 25.3%, compared with $14.5 million with an effective tax rate of 26.3% for the three months ended March 31, 2023. The decrease in tax expense for the three months ended March 31, 2024, compared with the same period last year was largely the result of a decrease in taxable income and the 2024 sunset of the 2.5% NJ Corporate Business Tax surcharge, while the decrease in the effective tax rate for the three months ended March 31, 2024, compared with the three months ended March 31, 2023, was largely due to the 2024 sunset of the 2.5% NJ Corporate Business Tax surcharge and a decrease in the proportion of income derived from taxable sources.
Asset Quality
The Company’s total non-performing loans as of March 31, 2024 were $47.6 million, or 0.44% of total loans, compared $49.6 million, or 0.46% of total loans as of December 31, 2023 and $35.5 million, or 0.35% of total loans as of March 31, 2023. The $2.0 million decrease in non-performing loans as of March 31, 2024, compared to the trailing quarter, consisted of a $4.6 million decrease in non-performing commercial loans and a $771,000 decrease in non-performing construction loans, partially offset by a $1.6 million increase in non-performing multi-family loans, a $794,000 increase in non-performing residential mortgage loans, a $787,000 increase in non-performing commercial mortgage loans and a $127,000 increase in non-performing consumer loans. As of March 31, 2024, impaired loans totaled $40.1 million with related specific reserves of $8.2 million, compared with impaired loans totaling $42.3 million with related specific reserves of $2.9 million as of December 31, 2023. As of March 31, 2023, impaired loans totaled $27.5 million with related specific reserves of $1.4 million.
As of March 31, 2024, the Company’s allowance for credit losses related to the loan portfolio was 0.98% of total loans, compared to 0.99% and 0.91% as of December 31, 2023 and March 31, 2023, respectively. The allowance for credit losses decreased $771,000 to $106.4 million as of March 31, 2024, from $107.2 million as of December 31, 2023. The decrease in the allowance for credit losses on loans at March 31, 2024 compared to December 31, 2023 was due to net charge-offs of $971,000, partially offset by a $200,000 provision for credit losses.
5

The following table shows accruing past due loans and non-accrual loans on the dates indicated, as well as certain asset quality ratios.
  March 31, 2024 December 31, 2023 March 31, 2023
 
Number
of
Loans
 Principal
Balance
of Loans
Number
of
Loans
 Principal
Balance
of Loans
Number
of
Loans
 Principal
Balance
of Loans
(Dollars in thousands)
Accruing past due loans:
30 to 59 days past due:
Commercial mortgage loans 3  $ 5,052  1  $ 825  1  $ 3,000 
Multi-family mortgage loans 4  12,069  1  3,815  1  3,875 
Construction loans —  —  —  —  —  — 
Residential mortgage loans 11  3,568  13  3,429  9  2,064 
Total mortgage loans 18  20,689  15  8,069  11  8,939 
Commercial loans 11  4,493  6  998  4  1,070 
Consumer loans 22  803  31  875  22  2,106 
Total 30 to 59 days past due 51  $ 25,985  52  $ 9,942  37  $ 12,115 
60 to 89 days past due:
Commercial mortgage loans 3  $ 1,148  —  $ —  4  $ 1,528 
Multi-family mortgage loans —  —  1  1,635  1  785 
Construction loans —  —  —  —  —  — 
Residential mortgage loans 6  804  8  1,208  6  639 
Total mortgage loans 9  1,952  9  2,843  11  2,952 
Commercial loans 3  332  3  198  2  3,028 
Consumer loans 8  755  5  275  1  150 
Total 60 to 89 days past due 20  3,039  17  3,316  14  6,130 
Total accruing past due loans 71  $ 29,024  69  $ 13,258  51  $ 18,245 
Non-accrual:
Commercial mortgage loans 8  $ 5,938  7  $ 5,151  5  $ 6,815 
Multi-family mortgage loans 2  2,355  1  744  1  1,548 
Construction loans —  —  1  771  2  1,874 
Residential mortgage loans 10  1,647  7  853  12  1,744 
Total mortgage loans 20  9,940  16  7,519  20  11,981 
Commercial loans 21  36,892  26  41,487  30  23,129 
Consumer loans 11  760  10  633  10  346 
Total non-accrual loans 52  $ 47,592  52  $ 49,639  60  $ 35,456 
Non-performing loans to total loans 0.44  % 0.46  % 0.35  %
Allowance for loan losses to total non-performing loans 223.63  % 215.96  % 261.61  %
Allowance for loan losses to total loans 0.98  % 0.99  % 0.91  %
As of March 31, 2024 and December 31, 2023, the Company held foreclosed assets of $11.3 million and $11.7 million, respectively. During the three months ended March 31, 2024, there were two properties sold with an aggregate carrying value of $327,000. Foreclosed assets as of March 31, 2024 consisted primarily of commercial real estate. Total non-performing assets as of March 31, 2024 decreased $2.4 million to $58.9 million, or 0.42% of total assets, from $61.3 million, or 0.43% of total assets as of December 31, 2023.
6

Balance Sheet Summary
Total assets as of March 31, 2024 were $14.13 billion, a $79.9 million decrease from December 31, 2023. The decrease in total assets was primarily due to a $33.6 million decrease in total investments and a $31.0 million decrease in total loans.
The Company’s loan portfolio totaled $10.84 billion as of March 31, 2024 and $10.87 billion as of December 31, 2023. The loan portfolio consisted of the following:
March 31, 2024 December 31, 2023
(Dollars in thousands)
Mortgage loans:
Commercial $ 4,353,799  $ 4,512,411 
Multi-family 1,825,888  1,812,500 
Construction 711,417  653,246 
Residential 1,152,185  1,164,956 
Total mortgage loans 8,043,289  8,143,113 
Commercial loans 2,514,550  2,442,406 
Consumer loans 295,125  299,164 
Total gross loans 10,852,964  10,884,683 
Premiums on purchased loans 1,439  1,474 
Net deferred fees and unearned discounts (11,696) (12,456)
Total loans $ 10,842,707  $ 10,873,701 
During the three months ended March 31, 2024, the loan portfolio had net decreases of $158.6 million of commercial mortgage loans, $12.8 million of residential mortgage loans, and $4.0 million of consumer loans, partially offset by net increases of $72.1 million of commercial loans, $58.2 million of construction loans, and $13.4 million of multi-family loans. All commercial loans, which consist of commercial real estate, multi-family, commercial and construction loans, represented 86.7% of the loan portfolio as of March 31, 2024, compared to 86.5% as of December 31, 2023.
For the three months ended March 31, 2024, loan funding, including advances on lines of credit, totaled $622.7 million, compared with $809.2 million for the same period in 2023.
As of March 31, 2024, the Company’s unfunded loan commitments totaled $1.97 billion, including commitments of $1.14 billion in commercial loans, $486.9 million in construction loans and $49.9 million in commercial mortgage loans. Unfunded loan commitments as of December 31, 2023 and March 31, 2023 were $2.09 billion and $2.05 billion, respectively.
The loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $1.08 billion as of March 31, 2024, compared to $1.09 billion and $1.54 billion as of December 31, 2023 and March 31, 2023, respectively.
Total investment securities were $2.10 billion as of March 31, 2024, a $33.6 million decrease from December 31, 2023. This decrease was primarily due to repayments of mortgage-backed securities, an increase in unrealized losses on available for sale debt securities and maturities and calls of certain municipal and agency bonds, partially offset by purchases of mortgage-backed and municipal securities.
Total deposits decreased $193.6 million during the three months ended March 31, 2024, to $10.10 billion. The decrease in total deposits was primarily due to a decrease in brokered deposits of $98.0 million and a decrease in municipal deposits of $57.0 million. Total savings and demand deposit accounts decreased $129.7 million to $9.07 billion as of March 31, 2024, while total time deposits decreased $64.0 million to $1.03 billion as of March 31, 2024. The decrease in savings and demand deposits consisted of a $149.1 million decrease in non-interest-bearing demand deposits and a $14.7 million decrease in savings deposits, partially offset by a $28.6 million increase in interest bearing demand deposits and a $5.5 million increase in money market deposits. The decrease in time deposits consisted of an $84.8 million decrease in brokered time deposits, partially offset by a $20.9 million increase in retail time deposits.
7

Borrowed funds increased $88.1 million during the three months ended March 31, 2024, to $2.06 billion. The increase in borrowings was largely due to asset funding requirements. Borrowed funds represented 14.6% of total assets as of March 31, 2024, an increase from 13.9% as of December 31, 2023.
Stockholders’ equity increased $4.6 million during the three months ended March 31, 2024, to $1.70 billion, primarily due to net income earned for the period, partially offset by an increase in unrealized losses on available for sale debt securities and cash dividends paid to stockholders. For the three months ended March 31, 2024, common stock repurchases totaled 86,325 shares at an average cost of $14.84 per share, all of which were made in connection with withholding to cover income taxes on the vesting of stock-based compensation. As of March 31, 2024, approximately 1.0 million shares remained eligible for repurchase under the current stock repurchase authorization. Book value per share and tangible book value per share(1) as of March 31, 2024 were $22.33 and $16.30, respectively, compared with $22.38 and $16.32, respectively, as of December 31, 2023.
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 northern and central New Jersey, Bucks, Lehigh and Northampton counties in Pennsylvania, as well as Queens and Nassau Counties in New York. The Bank also provides fiduciary and wealth management services through its wholly owned subsidiary, Beacon Trust Company and insurance services through its wholly owned subsidiary, Provident Protection Plus, Inc.
Post Earnings Conference Call
Representatives of the Company will hold a conference call for investors on Friday, April 19, 2024 at 10:00 a.m. Eastern Time to discuss the Company’s financial results for the quarter ended March 31, 2024. The call may be accessed by dialing 1-888-412-4131 (United States Toll Free) and 1-646-960-0134 (United States Local). Speakers will need to enter conference ID code (3610756) before being met by a live operator. Internet access to the call is also available (listen only) at provident.bank by going to Investor Relations and clicking on "Webcast."
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-looking statements 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 Annual Report on Form 10-K, as supplemented by its Quarterly Reports on Form 10-Q, and those related to the economic environment, particularly in the market areas in which the Company operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, the effects of the recent turmoil in the banking industry, changes in accounting policies and practices that may be adopted by the regulatory agencies and the accounting 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, the availability of and costs associated with sources of liquidity, the ability to complete, or any delays in completing, the pending merger between the Company and Lakeland; any failure to realize the anticipated benefits of the pending merger transaction when expected or at all; certain restrictions during the pendency of the transaction that may impact the Company’s ability to pursue certain business opportunities or strategic transactions; the possibility that the pending merger transaction may be more expensive to complete than anticipated, including as a result of conditions imposed by regulators, unexpected conditions, factors or events, diversion of management’s attention from ongoing business operations and opportunities; potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the merger and integration of the companies; and the impact of a potential shutdown of the federal government.
8

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 actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not assume any duty, and does not undertake, to update any forward-looking statements to reflect events or circumstances after the date of this statement.
Footnotes
(1) Annualized adjusted pre-tax, pre-provision return on average assets, annualized return on average tangible equity, tangible book value per share, annualized adjusted non-interest expense as a percentage of average assets and the efficiency ratio are non-GAAP financial measures. Please refer to the Notes following the Consolidated Financial Highlights which contain the reconciliation of GAAP to non-GAAP financial measures and the associated calculations.












9

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Financial Highlights
(Dollars in Thousands, except share data) (Unaudited)
As of or for the
Three months ended
March 31, December 31, March 31,
2024 2023 2023
Statement of Income
Net interest income $ 93,670  $ 95,788  $ 108,324 
Provision for credit losses 186  497  6,001 
Non-interest income 20,807  18,968  22,152 
Non-interest expense 71,321  74,491  69,485 
Income before income tax expense 42,970  39,768  54,990 
Net income 32,082  27,312  40,536 
Diluted earnings per share $ 0.43  $ 0.36  $ 0.54 
Interest rate spread 2.26  % 2.33  % 3.09  %
Net interest margin 2.87  % 2.92  % 3.48  %
Profitability
Annualized return on average assets 0.92  % 0.77  % 1.20  %
Annualized return on average equity 7.60  % 6.60  % 10.11  %
Annualized return on average tangible equity (1)
 10.40  % 9.15  % 14.10  %
Annualized adjusted non-interest expense to average assets (3)
 1.99  % 1.98  % 2.00  %
Efficiency ratio (4)
 60.82  % 61.32  % 51.85  %
Asset Quality
Non-accrual loans $ 47,592  $ 49,639  $ 35,456 
90+ and still accruing —  —  — 
Non-performing loans 47,592  49,639  35,456 
Foreclosed assets 11,324  11,651  13,743 
Non-performing assets 58,916  61,290  49,199 
Non-performing loans to total loans 0.44  % 0.46  % 0.35  %
Non-performing assets to total assets 0.42  % 0.43  % 0.36  %
Allowance for loan losses $ 106,429  $ 107,200  $ 92,758 
Allowance for loan losses to total non-performing loans 223.63  % 215.96  % 261.61  %
Allowance for loan losses to total loans 0.98  % 0.99  % 0.91  %
Net loan charge-offs $ 971  $ 863  $ 671 
Annualized net loan charge-offs to average total loans 0.04  % 0.03  % 0.03  %
Average Balance Sheet Data
Assets $ 14,093,767  $ 14,114,626  $ 13,732,708 
Loans, net 10,668,992  10,660,201  10,093,856 
Earning assets 12,862,910  12,823,541  12,418,530 
Core deposits 9,129,244  9,210,315  9,720,797 
Borrowings 1,940,981  1,873,822  1,224,279 
Interest-bearing liabilities 10,074,106  10,020,726  9,264,564 
Stockholders' equity 1,698,170  1,642,854  1,626,370 
Average yield on interest-earning assets 5.06  % 5.04  % 4.63  %
Average cost of interest-bearing liabilities 2.80  % 2.71  % 1.54  %


10

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 that these 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-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Company’s industry. 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 the Company strongly encourages a review of its condensed consolidated financial statements in their entirety.
(1) Book and Tangible Book Value per Share Three Months Ended
March 31, December 31, March 31,
2024 2023 2023
Total stockholders' equity $ 1,695,162  $ 1,690,596  $ 1,640,080 
Less: total intangible assets 457,239  457,942  460,132 
Total tangible stockholders' equity $ 1,237,923  $ 1,232,654  $ 1,179,948 
Shares outstanding 75,928,193  75,537,186  75,467,890 
Book value per share (total stockholders' equity/shares outstanding) $ 22.33  $ 22.38  $ 21.73 
Tangible book value per share (total tangible stockholders' equity/shares outstanding) $ 16.30  $ 16.32  $ 15.64 
(2) Annualized Return on Average Tangible Equity
Three Months Ended
March 31, December 31, March 31,
2024 2023 2023
Total average stockholders' equity $ 1,698,170  $ 1,642,854  $ 1,626,370 
Less: total average intangible assets 457,695  458,410  460,631 
Total average tangible stockholders' equity $ 1,240,475  $ 1,184,444  $ 1,165,739 
Net income $ 32,082  $ 27,312  $ 40,536 
Annualized return on average tangible equity (net income/total average tangible stockholders' equity) 10.40  % 9.15  % 14.10  %
(3) Annualized Pre-Tax, Pre-Provision ("PTPP") Return on Average Assets
Three Months Ended
March 31, December 31, March 31,
2024 2023 2023
Net income $ 32,082  $ 27,312  $ 40,536 
Adjustments to net income:
Provision for credit losses 186  497  6,001 
Credit loss (benefit) expense for off-balance sheet credit exposure (506) (1,360) 739 
Merger-related transaction costs 2,202  2,477  1,100 
Contingent litigation reserves —  3,000  — 
Income tax expense 10,888  12,456  14,454 
PTPP income $ 44,852  $ 44,382  $ 62,830 
Annualized PTPP income $ 180,394  $ 176,081  $ 254,811 
Average assets $ 14,093,767  $ 14,114,626  $ 13,732,708 
Annualized PTPP return on average assets 1.28  % 1.25  % 1.86  %
11

(4) Annualized Adjusted Non-Interest Expense to Average Assets
Three Months Ended
March 31, December 31, March 31,
2024 2023 2023
Reported non-interest expense $ 71,321  $ 74,491  $ 69,485 
Adjustments to non-interest expense:
Credit loss (benefit) expense for off-balance sheet credit exposures (506) (1,360) 739 
Merger-related transaction costs 2,202  2,477  1,100 
Contingent litigation reserves $ —  $ 3,000  $ — 
Adjusted non-interest expense $ 69,625  $ 70,374  $ 67,646 
Annualized adjusted non-interest expense $ 280,030  $ 279,201  $ 274,342 
Average assets $ 14,093,767  $ 14,114,626  $ 13,732,708 
Annualized adjusted non-interest expense/average assets 1.99  % 1.98  % 2.00  %
(5) Efficiency Ratio Calculation
Three Months Ended
March 31, December 31, March 31,
2024 2023 2023
Net interest income $ 93,670  $ 95,788  $ 108,324 
Non-interest income 20,807  18,968  22,152 
Total income $ 114,477  $ 114,756  $ 130,476 
Adjusted non-interest expense $ 69,625  $ 70,374  $ 67,646 
Efficiency ratio (adjusted non-interest expense/income) 60.82  % 61.32  % 51.85  %

12

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Financial Condition
March 31, 2024 (Unaudited) and December 31, 2023
(Dollars in Thousands)
Assets March 31, 2024 December 31, 2023
Cash and due from banks $ 158,306  $ 180,241 
Short-term investments 46  14 
Total cash and cash equivalents 158,352  180,255 
Available for sale debt securities, at fair value 1,666,306  1,690,112 
Held to maturity debt securities, net (fair value of $341,459 as of March 31, 2024 (unaudited) and $352,601 as of December 31, 2023) 354,671  363,080 
Equity securities, at fair value 1,341  1,270 
Federal Home Loan Bank stock 77,750  79,217 
Loans 10,842,707  10,873,701 
Less allowance for credit losses 106,429  107,200 
Net loans 10,736,278  10,766,501 
Foreclosed assets, net 11,324  11,651 
Banking premises and equipment, net 69,487  70,998 
Accrued interest receivable 58,677  58,966 
Intangible assets 457,239  457,942 
Bank-owned life insurance 243,513  243,050 
Other assets 295,980  287,768 
Total assets $ 14,130,918  $ 14,210,810 
Liabilities and Stockholders' Equity
Deposits:
Demand deposits $ 7,905,961  $ 8,020,889 
Savings deposits 1,160,951  1,175,683 
Certificates of deposit of $250,000 or more 223,639  218,549 
Other time deposits 808,341  877,393 
Total deposits 10,098,892  10,292,514 
Mortgage escrow deposits 43,881  36,838 
Borrowed funds 2,058,098  1,970,033 
Subordinated debentures 10,744  10,695 
Other liabilities 224,141  210,134 
Total liabilities 12,435,756  12,520,214 
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, 83,209,012 shares issued and 75,928,193 shares outstanding as of March 31, 2024 and 75,537,186 outstanding as of December 31, 2023. 832  832 
Additional paid-in capital 990,582  989,058 
Retained earnings 988,480  974,542 
Accumulated other comprehensive loss (151,585) (141,115)
Treasury stock (129,062) (127,825)
Unallocated common stock held by the Employee Stock Ownership Plan (4,085) (4,896)
Common Stock acquired by the Directors' Deferred Fee Plan (2,546) (2,694)
Deferred Compensation - Directors' Deferred Fee Plan 2,546  2,694 
Total stockholders' equity 1,695,162  1,690,596 
Total liabilities and stockholders' equity $ 14,130,918  $ 14,210,810 
13

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Income
Three months ended March 31, 2024, December 31, 2023 and March 31, 2023
(Dollars in Thousands, except per share data) (Unaudited)
Three Months Ended
March 31, December 31, March 31,
2024 2023 2023
Interest and dividend income:
Real estate secured loans $ 107,456  $ 109,112  $ 95,988 
Commercial loans 36,100  34,939  28,683 
Consumer loans 4,523  5,020  4,242 
Available for sale debt securities, equity securities and Federal Home Loan Bank stock 12,330  12,042  11,430 
Held to maturity debt securities 2,268  2,303  2,368 
Deposits, federal funds sold and other short-term investments 1,182  755  845 
Total interest income 163,859  164,171  143,556 
Interest expense:
Deposits 52,534  50,579  27,510 
Borrowed funds 17,383  17,527  7,476 
Subordinated debt 272  277  246 
Total interest expense 70,189  68,383  35,232 
Net interest income 93,670  95,788  108,324 
Provision charge for credit losses 186  497  6,001 
Net interest income after provision for credit losses 93,484  95,291  102,323 
Non-interest income:
Fees 5,912  6,102  6,387 
Wealth management income 7,488  6,843  6,915 
Insurance agency income 4,793  2,759  4,102 
Bank-owned life insurance 1,817  1,644  1,484 
Net gain on securities transactions (1) (7) (5)
Other income 798  1,627  3,269 
Total non-interest income 20,807  18,968  22,152 
Non-interest expense:
Compensation and employee benefits 40,048  38,773  38,737 
Net occupancy expense 8,520  7,797  8,410 
Data processing expense 6,783  6,457  5,508 
FDIC Insurance 2,272  2,890  1,937 
Amortization of intangibles 705  721  762 
Advertising and promotion expense 966  1,100  1,232 
Credit loss (benefit) expense for off-balance sheet exposures (506) (1,360) 739 
Merger-related expenses 2,202  2,477  1,100 
Other operating expenses 10,331  15,636  11,060 
Total non-interest expense 71,321  74,491  69,485 
Income before income tax expense 42,970  39,768  54,990 
Income tax expense 10,888  12,456  14,454 
Net income $ 32,082  $ 27,312  $ 40,536 
Basic earnings per share $ 0.43  $ 0.36  $ 0.54 
Average basic shares outstanding 75,260,029 74,995,705 74,645,336
Diluted earnings per share $ 0.43  $ 0.36  $ 0.54 
Average diluted shares outstanding 75,275,660 75,041,545 74,702,527
14

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Quarterly Average Balances
 (Dollars in Thousands) (Unaudited)
March 31, 2024 December 31, 2023 March 31, 2023
Average Balance Interest Average
Yield/Cost		 Average Balance Interest Average
Yield/Cost		 Average Balance Interest Average
Yield/Cost
Interest-Earning Assets:
Deposits $ 87,848  $ 1,182  5.41  % $ 54,998  $ 745  5.37  % $ 72,022  $ 845  4.76  %
Federal funds sold and other short-term investments 21 —  —  % 838 10  4.39  % 29 —  3.70  %
Available for sale debt securities 1,673,950 10,022 2.39  % 1,647,906 9,858  2.39  % 1,808,619 10,402 2.30  %
Held to maturity debt securities, net (1)
 357,246 2,268 2.54  % 364,433 2,303  2.53  % 383,907 2,368 2.47  %
Equity securities, at fair value 1,099  —  —  % 1,016  —  —  % 991  —  —  %
Federal Home Loan Bank stock 73,754 2,308 12.52  % 94,149 2,184 9.28  % 59,106 1,028 6.96  %
Net loans: (2)
Total mortgage loans 7,990,218 107,456 5.33  % 8,028,300 109,112 5.34  % 7,643,140 95,988 5.02  %
Total commercial loans 2,381,965 36,100 6.03  % 2,329,430 34,939 5.90  % 2,146,658 28,683 5.37  %
Total consumer loans 296,809 4,523 6.13  % 302,471 5,020 6.58  % 304,058 4,242 5.66  %
Total net loans 10,668,992 148,079 5.51  % 10,660,201 149,071 5.50  % 10,093,856 128,913 5.12  %
Total interest-earning assets $ 12,862,910  $ 163,859  5.06  % $ 12,823,541  $ 164,171  5.04  % $ 12,418,530  $ 143,556  4.63  %
Non-Interest Earning Assets:
Cash and due from banks 116,563 111,610 142,953
Other assets 1,114,294  1,179,475  1,171,225
Total assets $ 14,093,767  $ 14,114,626  $ 13,732,708 
Interest-Bearing Liabilities:
Demand deposits $ 5,894,062  $ 41,566  2.84  % $ 5,856,916  $ 39,648  2.69  % $ 5,771,582  $ 21,920  1.54  %
Savings deposits 1,163,181 637 0.22  % 1,183,857 602 0.20  % 1,398,419 453 0.13  %
Time deposits 1,065,170 10,331 3.90  % 1,095,468 10,329 3.74  % 859,773 5,137 2.42  %
Total Deposits 8,122,413 52,534 2.60  % 8,136,241 50,579 2.47  % 8,029,774 27,510 1.39  %
Borrowed funds 1,940,981 17,383 3.60  % 1,873,822 17,527 3.71  % 1,224,279 7,476 2.48  %
Subordinated debentures 10,712  272  10.23  % 10,663  277  10.27  % 10,511  246  9.51  %
Total interest-bearing liabilities 10,074,106 70,189 2.80  % 10,020,726 68,383 2.71  % 9,264,564 35,232 1.54  %
Non-Interest Bearing Liabilities:
Non-interest bearing deposits 2,072,001 2,169,542 2,550,796
Other non-interest bearing liabilities 249,490 281,504 290,978
Total non-interest bearing liabilities 2,321,491 2,451,046 2,841,774
Total liabilities 12,395,597 12,471,772 12,106,338
Stockholders' equity 1,698,170 1,642,854 1,626,370
Total liabilities and stockholders' equity $ 14,093,767  $ 14,114,626  $ 13,732,708 
Net interest income $ 93,670  $ 95,788  $ 108,324 
Net interest rate spread 2.26  % 2.33  % 3.09  %
Net interest-earning assets $ 2,788,804  $ 2,802,815  $ 3,153,966 
Net interest margin (3)
2.87  % 2.92  % 3.48  %
Ratio of interest-earning assets to total interest-bearing liabilities 1.28x 1.28x 1.34x
(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.
15

The following table summarizes the quarterly net interest margin for the previous five quarters.
3/31/24 12/31/23 9/30/23 6/30/23 3/31/23
1st Qtr. 4th Qtr. 3rd Qtr. 2nd Qtr. 1st Qtr.
Interest-Earning Assets:
Securities 2.87  % 2.79  % 2.67  % 2.53  % 2.52  %
Net loans 5.51  % 5.50  % 5.37  % 5.24  % 5.12  %
Total interest-earning assets 5.06  % 5.04  % 4.89  % 4.73  % 4.63  %
Interest-Bearing Liabilities:
Total deposits 2.60  % 2.47  % 2.22  % 1.85  % 1.39  %
Total borrowings 3.60  % 3.71  % 3.74  % 3.41  % 2.48  %
Total interest-bearing liabilities 2.80  % 2.71  % 2.50  % 2.13  % 1.54  %
Interest rate spread 2.26  % 2.33  % 2.39  % 2.60  % 3.09  %
Net interest margin 2.87  % 2.92  % 2.96  % 3.11  % 3.48  %
Ratio of interest-earning assets to interest-bearing liabilities 1.28x 1.28x 1.30x 1.31x 1.34x


















16

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Average Year to Date Balances
(Dollars in Thousands) (Unaudited)
March 31, 2024 March 31, 2023
Average Average Average Average
Balance Interest Yield/Cost Balance Interest Yield/Cost
Interest-Earning Assets:
Deposits $ 87,848  $ 1,182  5.41  % $ 72,022  $ 845  4.76  %
Federal funds sold and other short term investments 21  —  —  % 29  —  3.70  %
Available for sale debt securities 1,673,950  10,022  2.39  % 1,808,619  10,402  2.30  %
Held to maturity debt securities, net (1)
 357,246  2,268  2.54  % 383,907  2,368  2.47  %
Equity securities, at fair value 1,099  —  —  % 991  —  —  %
Federal Home Loan Bank stock 73,754  2,308  12.52  % 59,106  1,028  6.96  %
Net loans: (2)
Total mortgage loans 7,990,218  107,456  5.33  % 7,643,140  95,988  5.02  %
Total commercial loans 2,381,965  36,100  6.03  % 2,146,658  28,683  5.37  %
Total consumer loans 296,809  4,523  6.13  % 304,058  4,242  5.66  %
Total net loans 10,668,992  148,079  5.51  % 10,093,856  128,913  5.12  %
Total interest-earning assets $ 12,862,910  $ 163,859  5.06  % $ 12,418,530  $ 143,556  4.63  %
Non-Interest Earning Assets:
Cash and due from banks 116,563  142,953 
Other assets 1,114,294  1,171,225 
Total assets $ 14,093,767  $ 13,732,708 
Interest-Bearing Liabilities:
Demand deposits $ 5,894,062  $ 41,566  2.84  % $ 5,771,582  $ 21,920  1.54  %
Savings deposits 1,163,181  637  0.22  % 1,398,419  453  0.13  %
Time deposits 1,065,170  10,331  3.90  % 859,773  5,137  2.42  %
Total deposits 8,122,413  52,534  2.60  % 8,029,774  27,510  1.39  %
Borrowed funds 1,940,981  17,383  3.60  % 1,224,279  7,476  2.48  %
Subordinated debentures 10,712  272  10.23  % 10,511  246  9.51  %
Total interest-bearing liabilities $ 10,074,106  $ 70,189  2.80  % $ 9,264,564  $ 35,232  1.54  %
Non-Interest Bearing Liabilities:
Non-interest bearing deposits 2,072,001  2,550,796 
Other non-interest bearing liabilities 249,490  290,978 
Total non-interest bearing liabilities 2,321,491  2,841,774 
Total liabilities 12,395,597  12,106,338 
Stockholders' equity 1,698,170  1,626,370 
Total liabilities and stockholders' equity $ 14,093,767  $ 13,732,708 
Net interest income $ 93,670  $ 108,324 
Net interest rate spread 2.26  % 3.09  %
Net interest-earning assets $ 2,788,804  $ 3,153,966 
Net interest margin (3)
2.87  % 3.48  %
Ratio of interest-earning assets to total interest-bearing liabilities 1.28x 1.34x
(1) Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses.
(2) Average outstanding balance are net of the allowance for loan losses, deferred loan fees and expenses, loan premium and discounts and include non-accrual loans.
(3) Annualized net interest income divided by average interest-earning assets.
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The following table summarizes the year-to-date net interest margin for the previous three years.
Three Months Ended
March 31, 2024 March 31, 2023 March 31, 2022
Interest-Earning Assets:
Securities 2.87  % 2.52  % 1.47  %
Net loans 5.51  % 5.12  % 3.80  %
Total interest-earning assets 5.06  % 4.63  % 3.23  %
Interest-Bearing Liabilities:
Total deposits 2.60  % 1.39  % 0.25  %
Total borrowings 3.60  % 2.48  % 0.86  %
Total interest-bearing liabilities 2.80  % 1.54  % 0.29  %
Interest rate spread 2.26  % 3.09  % 2.94  %
Net interest margin 2.87  % 3.48  % 3.02  %
Ratio of interest-earning assets to interest-bearing liabilities 1.28x 1.34x 1.39x




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