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FALSE000117897000011789702024-07-252024-07-25

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): July 25, 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 July 26, 2024, Provident Financial Services, Inc. (the “Company”) issued a press release reporting its financial results for the three and six months ended June 30, 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 July 26, 2024, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.24 per common share, payable on August 30, 2024, to stockholders of record as of the close of business on August 16, 2024.

This announcement was included as part of the press release announcing financial results for the three and six months ended June 30, 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 July 26, 2024 announcing second quarter 2024 results inclusive of merger-related costs and declares 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:
 July 26, 2024 By: /s/ Anthony J. Labozzetta
Anthony J. Labozzetta
President and Chief Executive Officer









EX-99.1 2 a063024earningsrelease.htm EX-99.1 Document

Provident Financial Services, Inc. Reports Second Quarter 2024 Results Inclusive of Merger-Related Costs and Declares Quarterly Cash Dividend

ISELIN, NJ, July 26, 2024 - Provident Financial Services, Inc. (NYSE:PFS) (the “Company”) reported a net loss of $11.5 million, or $0.11 per basic and diluted share for the three months ended June 30, 2024, compared to net income of $32.1 million, or $0.43 per basic and diluted share, for the three months ended March 31, 2024 and $32.0 million, or $0.43 per basic and diluted share, for the three months ended June 30, 2023. For the six months ended June 30, 2024, net income totaled $20.6 million, or $0.23 per basic and diluted share, compared to $72.5 million, or $0.97 per basic and diluted share, for the six months ended June 30, 2023.

On May 16, 2024, the Company completed its merger with Lakeland Bancorp, Inc. (“Lakeland”), which added $10.91 billion to total assets, $7.91 billion to loans, and $8.62 billion to deposits, net of purchase accounting adjustments. The Company’s earnings for the three and six months ended June 30, 2024 were impacted by an initial CECL provision for credit losses on loans and commitments to extend credit of $65.2 million recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. The results of operations for the three and six months ended June 30, 2024 also included other transaction costs related to the merger with Lakeland totaling $18.9 million and $21.1 million, respectively, compared with transaction costs totaling $2.0 million and $3.1 million for the respective 2023 periods. Additionally, the Company realized a $2.8 million loss related to the sale in the current quarter of subordinated debt issued by Lakeland from its investment portfolio.
Anthony J. Labozzetta, President and Chief Executive Officer commented, “We are pleased with our performance this quarter, which featured the completion of our merger with Lakeland. While financial results reflect merger-related expenses, our core businesses, credit quality and risk management remain strong. Our fee-based wealth management and insurance agency teams performed well and are positioned to take advantage of our strengths as a larger organization. Our solid core performance, as demonstrated by our pre-tax pre-provision return on average assets, shows that the combined entity has a solid foundation and compelling prospects for the future.”
Regarding the Company's merger with Lakeland, Mr. Labozzetta added, “It is an exciting time for us as we have successfully closed the merger and welcomed the Lakeland team into Provident. We are grateful to our employees for their diligent efforts in completing the merger. As we approach systems conversion in September, we are pleased with how our cultures are integrating. Our teams are working together to broaden and deepen our relationships across a larger customer base through our complementary platforms of banking, insurance and wealth management.”
Performance Highlights for the Second Quarter of 2024
•The Company recorded a $66.1 million provision for credit losses on loans for the quarter ended June 30, 2024, compared to a $200,000 provision for the trailing quarter. The provision for credit losses on loans in the quarter was primarily attributable to an initial CECL provision for credit losses on loans of $60.1 million, recorded as part of the Lakeland merger. The allowance for credit losses as a percentage of loans increased to 1.00% as of June 30, 2024, from 0.98% as of March 31, 2024.
•The Company's annualized adjusted pre-tax, pre-provision returns on average assets, average equity and average tangible equity(1) were 1.47%, 13.26% and 19.21% for the quarter ended June 30, 2024, compared to 1.28%, 10.62% and 14.54% for the quarter ended March 31, 2024. A reconciliation between GAAP and the above non-GAAP ratios are shown on page 13 of the earnings release.
•The Company’s loans held for investment totaled $18.76 billion as of June 30, 2024, from $10.84 billion as of March 31, 2024. As part of the merger with Lakeland, we acquired $7.91 billion in loans, net of purchase accounting adjustments.
•The Company's deposits totaled $18.35 billion as of June 30, 2024, from $10.10 billion as of March 31, 2024. As part of the merger with Lakeland, we acquired $8.62 billion in deposits, net of purchase accounting adjustments. Excluding municipal and brokered deposits, organic deposits increased $123.0 million during the quarter.
1

•Net interest income increased $47.8 million to $141.5 million for the three months ended June 30, 2024, from $93.7 million for the trailing quarter primarily due to the net assets acquired from Lakeland, including accretion of purchase accounting adjustments.
•The net interest margin increased 34 basis points to 3.21% for the quarter ended June 30, 2024, from 2.87% for the trailing quarter. The weighted average yield on interest-earning assets for the quarter ended June 30, 2024 increased 61 basis points to 5.67%, compared to the trailing quarter, while the weighted average cost of interest-bearing liabilities for the quarter ended June 30, 2024 increased 29 basis points to 3.09%, compared to the trailing quarter. The increases in both the yield on interest-earning assets and cost of interest-bearing liabilities were primarily due to the net assets and liabilities acquired from Lakeland, including accretion of purchase accounting adjustments which contributed approximately 47 basis points to the net interest margin in the current quarter.
•As of June 30, 2024, the Company's loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $1.67 billion, with a weighted average interest rate of 7.53%, compared to $1.08 billion, with a weighted average interest rate of 7.42%, as of March 31, 2024. The increase in pipeline was primarily attributable to the addition of Lakeland's pipeline.
•As of June 30, 2024, CRE loans related to office properties totaled $1.1 billion, compared to $483.9 million as of March 31, 2024. The increase was attributable to the addition of Lakeland's loan portfolio. CRE loans secured by office properties constitutes only 5.7% of total loans and have an average loan size of $2.1 million, with just nine relationships greater than $10.0 million. Approximately 37% 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 June 30, 2024 were limited to one loan totaling $801,000.
•As of June 30, 2024, multi-family CRE loans secured by New York City properties totaled $227.7 million, compared to $188.7 million as of March 31, 2024. The increase was attributable to the addition of Lakeland's loan portfolio. This portfolio constitutes only 1.2% of total loans and has an average loan size of $2.6 million. Approximately $113.6 million of these loans are collateralized by rent stabilized apartments and all are performing.
•Wealth Management and Insurance Agency income increased 12.3% and 16.7%, respectively, versus the same period in 2023. The increase in wealth management income was primarily due to an increase in the average market value of assets under management during the period, while the increase in insurance agency income was largely due to an increase in business activity. Total non-interest income was 13.6% of net revenue for the quarter ended June 30, 2024.
•On May 9, 2024, the Company issued $225.0 million of 9.00% Fixed-to-Floating Rate subordinated notes due 2034, resulting in net proceeds of $221.0 million.
•Non-performing loans to total loans as of June 30, 2024 decreased to 0.36%, compared to 0.44% as of March 31, 2024, while non-performing assets to total loans as of June 30, 2024 decreased to 0.33%, compared to 0.42% as of March 31, 2024. For the three months ended June 30, 2024, net charge-offs totaled $1.3 million, or an annualized 4 basis points of average loans.
Declaration of Quarterly Dividend
The Company’s Board of Directors declared a quarterly cash dividend of $0.24 per common share payable on August 30, 2024 to stockholders of record as of the close of business on August 16, 2024.
2

Results of Operations
Three months ended June 30, 2024 compared to the three months ended March 31, 2024
For the three months ended June 30, 2024, the Company reported a net loss of $11.5 million, or $0.11 per basic and diluted share, compared to net income of $32.1 million, or $0.43 per basic and diluted share, for the three months ended March 31, 2024. The Company’s earnings for the three months ended June 30, 2024 were impacted by an initial CECL provision for credit losses on loans and commitments to extend credit of $65.2 million recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. The results of operations for the three months ended June 30, 2024 included transaction costs related to the merger with Lakeland totaling $18.9 million, compared with transaction costs totaling $2.2 million in the trailing quarter. Additionally, the Company realized a $2.8 million loss related to the sale in the current quarter of subordinated debt issued by Lakeland from its investment portfolio.
Net Interest Income and Net Interest Margin
Net interest income increased $47.8 million to $141.5 million for the three months ended June 30, 2024, from $93.7 million for the trailing quarter. Net interest income for the three months ended June 30, 2024 was favorably impacted by the net assets acquired from Lakeland, partially offset by unfavorable repricing of both deposits and borrowings.

The Company’s net interest margin increased 34 basis points to 3.21% for the quarter ended June 30, 2024, from 2.87% for the trailing quarter. Accretion of purchase accounting adjustments contributed 47 basis points to the net interest margin in the current quarter. The current net interest margin reflects the acquisition of Lakeland’s interest-bearing assets and liabilities, the sale of $554.2 million of securities acquired from Lakeland and the repayment of overnight borrowings as well as the issuance of subordinated debt.
The weighted average yield on interest-earning assets for the quarter ended June 30, 2024 increased 61 basis points to 5.67%, compared to the trailing quarter. The weighted average cost of interest-bearing liabilities for the quarter ended June 30, 2024 increased 29 basis points from the trailing quarter, to 3.09%. The average cost of interest-bearing deposits for the quarter ended June 30, 2024 increased 24 basis points to 2.84%, compared to 2.60% for the trailing quarter. The average cost of total deposits, including non-interest-bearing deposits, was 2.27% for the quarter ended June 30, 2024, compared to 2.07% for the trailing quarter. The average cost of borrowed funds for the quarter ended June 30, 2024 was 3.83%, compared to 3.60% for the quarter ended March 31, 2024.
Provision for Credit Losses on Loans
For the quarter ended June 30, 2024, the Company recorded a $66.1 million provision for credit losses on loans, compared with a provision for credit losses on loans of $200,000 for the quarter ended March 31, 2024. The provision for credit losses on loans in the quarter was primarily attributable to an initial CECL provision for credit losses of $60.1 million, recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. For the three months ended June 30, 2024, net charge-offs totaled $1.3 million, or an annualized 4 basis points of average loans.
Non-Interest Income and Expense
For the three months ended June 30, 2024, non-interest income totaled $22.3 million, an increase of $1.5 million, compared to the trailing quarter. Fee income increased $2.8 million to $8.7 million for the three months ended June 30, 2024, compared to the trailing quarter, primarily due to increases in deposit fee income, debit card related fee income and commercial loan prepayment fees, resulting from the Lakeland merger. BOLI income increased $1.5 million for the three months ended June 30, 2024, compared to the trailing quarter, primarily due to an increase in benefit claims recognized, while wealth management income increased $281,000 to $7.8 million for the three months ended June 30, 2024, compared to the trailing quarter, mainly due to an increase in the average market value of assets under management during the period. Partially offsetting these increases in non-interest income, net gain on securities transactions decreased $3.0 million for the three months ended June 30, 2024, compared to the trailing quarter, primarily due to a $2.8 million loss on the sale of subordinated debt issued by Lakeland from the Provident investment portfolio prior to the merger. Additionally, insurance agency income decreased $305,000 to $4.5 million for the three months ended June 30, 2024, compared to the trailing quarter, mainly due to the receipt of contingent commissions in the prior quarter, partially offset by additional business in the current quarter.
3

Non-interest expense totaled $115.4 million for the three months ended June 30, 2024, an increase of $43.6 million, compared to $71.8 million for the trailing quarter. Merger-related expenses increased $16.7 million to $18.9 million for the three months ended June 30, 2024, compared to the trailing quarter. Compensation and benefits expense increased $14.8 million to $54.9 million for the three months ended June 30, 2024, compared to $40.0 million for the trailing quarter. The increase in compensation and benefits expense was primarily attributable to the addition of Lakeland. Amortization of intangibles increased $5.8 million to $6.5 million for the three months ended June 30, 2024, compared to $705,000 for the trailing quarter, largely due to purchase accounting adjustments related to Lakeland. Net occupancy expense increased $2.6 million to $11.1 million for the three months ended June 30, 2024, compared to $8.5 million for the trailing quarter, primarily due to depreciation and maintenance expenses from the addition of Lakeland. Data processing expense increased $1.7 million to $8.4 million for the three months ended June 30, 2024, compared to $6.8 million for the trailing quarter, primarily due to additional software and hardware expenses needed for the addition of Lakeland. Other operating expenses increased $931,000 to $11.3 million for the three months ended June 30, 2024, compared to $10.3 million for the trailing quarter, while FDIC insurance increased $828,000 to $3.1 million for the three months ended June 30, 2024, compared to the trailing quarter, primarily due to the addition of Lakeland.
The Company’s annualized adjusted non-interest expense as a percentage of average assets(1) was 2.02% for the quarter ended June 30, 2024, compared to 1.99% for the trailing quarter. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)(1) was 57.86% for the three months ended June 30, 2024, compared to 60.83% for the trailing quarter.
Income Tax Expense
For the three months ended June 30, 2024, the Company's income tax benefit was $9.8 million, compared with income tax expense of $10.9 million for the trailing quarter. The decrease in tax expense for the three months ended June 30, 2024, compared with the trailing quarter was largely due to a $5.3 million tax benefit related to the revaluation of deferred tax assets to reflect the imposition by the state of New Jersey of a 2.5% Corporate Transit Fee in the quarter, effective January 1, 2024, combined with a decrease in taxable income in the quarter as a result of additional expenses from the Lakeland merger.
Three months ended June 30, 2024 compared to the three months ended June 30, 2023
For the three months ended June 30, 2024, the Company reported a net loss of $11.5 million, or $0.11 per basic and diluted share, compared to net income of $32.0 million, or $0.43 per basic and diluted share, for the three months ended June 30, 2023. The Company’s earnings for the three months ended June 30, 2024 were impacted by an initial CECL provision for credit losses on loans and commitments to extend credit of $65.2 million recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. The results of operations for the three months ended June 30, 2024 included transaction costs related to the merger with Lakeland totaling $18.9 million and $2.0 million for the three months ended June 30, 2024 and 2023, respectively. Additionally, the Company realized a $2.8 million loss on the sale in the current quarter of subordinated debt issued by Lakeland from its investment portfolio.
Net Interest Income and Net Interest Margin
Net interest income increased $42.4 million to $141.5 million for the three months ended June 30, 2024, from $99.1 million for same period in 2023. Net interest income for the three months ended June 30, 2024 were favorably impacted by the net assets acquired from Lakeland, partially offset by unfavorable repricing of both deposits and borrowings.
The Company’s net interest margin increased 10 basis points to 3.21% for the quarter ended June 30, 2024, from 3.11% for the same period last year. Accretion of purchase accounting adjustments contributed 47 basis points to the net interest margin in the current quarter. The current net interest margin reflects the acquisition of Lakeland’s interest bearing assets and liabilities, the sale of $554.2 million of securities acquired from Lakeland and the repayment of overnight borrowings as well as the issuance of subordinated debt.
The weighted average yield on interest-earning assets for the quarter ended June 30, 2024 increased 94 basis points to 5.67%, compared to 4.73% for the quarter ended June 30, 2023. The weighted average cost of interest-bearing liabilities increased 96 basis points for the quarter ended June 30, 2024 to 3.09%, compared to 2.13% for the second quarter of 2023.
4

The average cost of interest-bearing deposits for the quarter ended June 30, 2024 was 2.84%, compared to 1.85% for the same period last year. Average non-interest-bearing demand deposits increased $498.0 million to $2.87 billion for the quarter ended June 30, 2024, compared to $2.37 billion for the quarter ended June 30, 2023. The average cost of total deposits, including non-interest-bearing deposits, was 2.27% for the quarter ended June 30, 2024, compared with 1.42% for the quarter ended June 30, 2023. The average cost of borrowed funds for the quarter ended June 30, 2024 was 3.83%, compared to 3.41% for the same period last year.
Provision for Credit Losses on Loans
For the quarter ended June 30, 2024, the Company recorded a $66.1 million provision for credit losses on loans, compared with a $10.4 million provision for credit losses on loans for the quarter ended June 30, 2023. The provision for credit losses on loans in the quarter was primarily attributable to an initial CECL provision for credit losses on loans of $60.1 million, recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. For the three months ended June 30, 2024, net charge-offs totaled $1.3 million, or an annualized 4 basis points of average loans.
Non-Interest Income and Expense
Non-interest income totaled $22.3 million for the quarter ended June 30, 2024, an increase of $2.9 million, compared to the same period in 2023. Fee income increased $2.9 million to $8.7 million for the three months ended June 30, 2024, compared to the prior year quarter, primarily due to increases in deposit fee income, debit card related fee income and commercial loan prepayment fees, resulting from the Lakeland merger. BOLI income increased $1.8 million to $3.3 million for the three months ended June 30, 2024, compared to the prior year quarter, primarily due to an increase in benefit claims recognized, combined with an increase in income related to the addition of Lakeland's BOLI. Wealth management fees increased $850,000 to $7.8 million for the three months ended June 30, 2024, compared to the quarter ended June 30, 2023, mainly due to an increase in the average market value of assets under management during the period, while insurance agency income increased $641,000 to $4.5 million for the three months ended June 30, 2024, compared to the quarter ended June 30, 2023, largely due to an increase in business activity. Partially offsetting these increases in non-interest income, net gains on securities transactions decreased $3.0 million for the three months ended June 30, 2024, compared to the quarter ended June 30, 2023, primarily due to a loss on the sale of subordinated debt issued by Lakeland from the Provident investment portfolio prior to the merger. Additionally, other income decreased $314,000 to $969,000 for the three months ended June 30, 2024, compared to the quarter ended June 30, 2023, primarily due to a decrease in gains on the sales of foreclosed real estate.
For the three months ended June 30, 2024, non-interest expense totaled $115.4 million, an increase of $50.3 million, compared to the three months ended June 30, 2023. Compensation and benefits expense increased $19.6 million to $54.9 million for three months ended June 30, 2024, compared to $35.3 million for the same period in 2023. The increase in compensation and benefits expense was primarily attributable to the addition of Lakeland. Additionally, merger-related expenses increased $17.0 million to $18.9 million for the three months ended June 30, 2024, compared to the same period in 2023. Amortization of intangibles increased $5.7 million to $6.5 million for the three months ended June 30, 2024, compared to $749,000 for the same period in 2023, largely due to purchase accounting adjustments. Data processing expense increased $2.7 million to $8.4 million for three months ended June 30, 2024, compared to $5.7 million for the same period in 2023, primarily due to additional software and hardware expenses needed for the addition of Lakeland. Net occupancy expense increased $3.2 million to $11.1 million for three months ended June 30, 2024, compared to $7.9 million for the same period in 2023, primarily due to an increase in depreciation and maintenance expenses because of the addition of Lakeland.
The Company’s annualized adjusted non-interest expense as a percentage of average assets(1) was 2.02% for the quarter ended June 30, 2024, compared to 1.83% 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 57.86% for the three months ended June 30, 2024 compared to 53.29% for the same respective period in 2023.
5

Income Tax Expense
For the three months ended June 30, 2024, the Company's income tax benefit was $9.8 million, compared with an income tax expense of $11.6 million for the three months ended June 30, 2023. The decrease in tax expense for the three months ended June 30, 2024, compared with the same period last year was largely due to a $5.3 million tax benefit related to the revaluation of deferred tax assets to reflect the imposition by the State of NJ of a 2.5% Corporate Transit Fee, effective January 1, 2024, combined with a decrease in taxable income in the quarter as a result of additional expenses from the Lakeland merger.
Six months ended June 30, 2024 compared to the six months ended June 30, 2023
For the six months ended June 30, 2024, net income totaled $20.6 million, or $0.23 per basic and diluted share, compared to net income of $72.5 million, or $0.97 per basic and diluted share, for the six months ended June 30, 2023. The Company’s earnings for the six months ended June 30, 2024 were impacted by an initial CECL provision for credit losses on loans and commitments to extend credit of $65.2 million recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. Transaction costs related to our merger with Lakeland totaled $21.1 million and $3.1 million for the six months ended June 30, 2024 and 2023, respectively. Additionally, the Company realized a $2.8 million loss related to the sale in the current quarter of subordinated debt issued by Lakeland from its investment portfolio.
Net Interest Income and Net Interest Margin
Net interest income increased $27.7 million to $235.2 million for the six months ended June 30, 2024, from $207.4 million for same period in 2023. Net interest income for the six months ended June 30, 2024 was favorably impacted by the net assets acquired from Lakeland, combined with the favorable repricing of adjustable rate loans, higher market rates on new loan originations and the originations of higher-yielding loans, partially offset by the unfavorable repricing of both deposits and borrowings.
For the six months ended June 30, 2024, the net interest margin decreased 21 basis points to 3.08%, compared to 3.29% for the six months ended June 30, 2023. The weighted average yield on interest earning assets increased 75 basis points to 5.43% for the six months ended June 30, 2024, compared to 4.68% for the six months ended June 30, 2023, while the weighted average cost of interest-bearing liabilities increased 113 basis points to 2.97% for the six months ended June 30, 2024, compared to 1.84% for the same period last year. The average cost of interest-bearing deposits increased 112 basis points to 2.74% for the six months ended June 30, 2024, compared to 1.62% for the same period last year. Average non-interest-bearing demand deposits increased $10.1 million to $2.47 billion for the six months ended June 30, 2024, compared with $2.46 billion for the six months ended June 30, 2023. The average cost of total deposits, including non-interest-bearing deposits, was 2.19% for the six months ended June 30, 2024, compared with 1.24% for the six months ended June 30, 2023. The average cost of borrowings for the six months ended June 30, 2024 was 3.75%, compared to 3.01% for the same period last year.
Provision for Credit Losses on Loans
For the six months ended June 30, 2024, the Company recorded a $66.3 million provision for credit losses on loans, compared with a provision for credit losses on loans of $16.4 million for the six months ended June 30, 2023. The provision for credit losses on loans in the quarter was primarily attributable to an initial CECL provision for credit losses on loans of $60.1 million recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations, partially offset by an improved economic forecast for the current six-month period within our CECL model, compared to the same period last year. For the six months ended June 30, 2024, net charge-offs totaled $2.3 million, or an annualized 3 basis points of average loans.
Non-Interest Income and Expense
For the six months ended June 30, 2024, non-interest income totaled $43.1 million, an increase of $1.5 million, compared to the same period in 2023. Fee income increased $2.4 million to $14.6 million for the six months ended June 30, 2024, compared to the same period in 2023, primarily due to increases in deposit fee income, debit card related fee income and commercial loan prepayment fees, resulting from the Lakeland merger.
6

BOLI income increased $2.1 million to $5.1 million for the six months ended June 30, 2024, compared to the same period in 2023, primarily due to an increase in benefit claims recognized, combined with an increase in income related to the addition of Lakeland's BOLI, while wealth management income increased $1.4 million to $15.3 million for the six months ended June 30, 2024, compared to the same period in 2023, mainly due to an increase in the average market value of assets under management during the period. Insurance agency income increased $1.3 million to $9.3 million for the six months ended June 30, 2024, compared to $8.0 million for the same period in 2023, largely due to increases in contingent commissions, retention revenue and new business activity. Partially offsetting these increases in non-interest income, net gains on securities transactions decreased $3.0 million for the six months ended June 30, 2024, primarily due to a $2.8 million loss on the sale of subordinated debt issued by Lakeland from the Provident investment portfolio prior to the merger. Other income decreased $2.8 million to $1.8 million for the six months ended June 30, 2024, compared to $4.6 million for the same period in 2023, primarily due to a $2.0 million gain from the sale of a foreclosed commercial property recorded in the prior year, combined with a decrease in gains on sales of SBA loans.
Non-interest expense totaled $187.2 million for the six months ended June 30, 2024, an increase of $53.4 million, compared to $133.9 million for the six months ended June 30, 2023. Compensation and benefits expense increased $20.9 million to $94.9 million for the six months ended June 30, 2024, compared to $74.0 million for the six months ended June 30, 2023. The increase in compensation and benefits expense was primarily attributable to the addition of Lakeland. Merger-related expenses increased $18.1 million to $21.1 million for the six months ended June 30, 2024, compared to $3.1 million for the six months ended June 30, 2023. Amortization of intangibles increased $5.7 million to $7.2 million for the six months ended June 30, 2024, compared to $1.5 million for the six months ended June 30, 2023, largely due to purchase accounting adjustments related to Lakeland. Additionally, net occupancy expense increased $3.3 million to $19.7 million for the six months ended June 30, 2024, compared to the same period in 2023, primarily due to increased depreciation and maintenance expenses because of the addition of Lakeland.
Income Tax Expense
For the six months ended June 30, 2024, the Company's income tax expense was $1.1 million, compared with $26.1 million for the six months ended June 30, 2023. The decrease in tax expense for the six months ended June 30, 2024, compared with the same period last year was largely due to a $5.3 million tax benefit related to the revaluation of deferred tax assets to reflect the imposition by the State of NJ of a 2.5% Corporate Transit Fee, effective January 1, 2024, combined with a decrease in taxable income as a result of additional expenses from the Lakeland merger.
Asset Quality
The Company’s total non-performing loans as of June 30, 2024 were $67.9 million, or 0.36% of total loans, compared to $47.6 million, or 0.44% of total loans as of March 31, 2024 and $49.6 million, or 0.46% of total loans as of December 31, 2023. The $20.3 million increase in non-performing loans as of June 30, 2024, compared to the trailing quarter, consisted of an $11.7 million increase in non-performing construction loans, a $4.9 million increase in non-performing multi-family loans, a $2.8 million increase in non-performing commercial loans, a $2.8 million increase in non-performing residential mortgage loans and a $384,000 increase in non-performing consumer loans, partially offset by a $2.4 million decrease in non-performing commercial mortgage loans. These increases were due to the addition of Lakeland, which resulted in additional non-performing loans of $21.4 million. As of June 30, 2024, impaired loans totaled $54.6 million with related specific reserves of $7.7 million, compared with impaired loans totaling $40.1 million with related specific reserves of $8.2 million as of March 31, 2024. As of December 31, 2023, impaired loans totaled $42.8 million with related specific reserves of $2.4 million.
As of June 30, 2024, the Company’s allowance for credit losses related to the loan portfolio was 1.00% of total loans, compared to 0.98% and 0.99% as of March 31, 2024 and December 31, 2023, respectively. The allowance for credit losses increased $81.1 million to $188.3 million as of June 30, 2024, from $107.2 million as of December 31, 2023. The increase in the allowance for credit losses on loans as of June 30, 2024 compared to December 31, 2023 was due to a $66.3 million provision for credit losses and a $17.2 million allowance recorded through goodwill related to Purchased Credit Deteriorated loans acquired from Lakeland, partially offset by net charge-offs of $2.3 million.

7

The following table sets forth accruing past due loans and non-accrual loans on the dates indicated, as well as delinquency statistics and certain asset quality ratios.
  June 30, 2024 March 31, 2024 December 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  $ 1,707  3  $ 5,052  1  $ 825 
Multi-family mortgage loans —  —  4  12,069  1  3,815 
Construction loans —  —  —  —  —  — 
Residential mortgage loans 9  1,714  11  3,568  13  3,429 
Total mortgage loans 12  3,421  18  20,689  15  8,069 
Commercial loans 20  3,444  11  4,493  6  998 
Consumer loans 38  2,891  22  803  31  875 
Total 30 to 59 days past due 70  $ 9,756  51  $ 25,985  52  $ 9,942 
60 to 89 days past due:
Commercial mortgage loans 3  $ 1,231  3  $ 1,148  —  $ — 
Multi-family mortgage loans —  —  —  —  1  1,635 
Construction loans —  —  —  —  —  — 
Residential mortgage loans 10  2,193  6  804  8  1,208 
Total mortgage loans 13  3,424  9  1,952  9  2,843 
Commercial loans 6  1,146  3  332  3  198 
Consumer loans 9  648  8  755  5  275 
Total 60 to 89 days past due 28  5,218  20  3,039  17  3,316 
Total accruing past due loans 98  $ 14,974  71  $ 29,024  69  $ 13,258 
Non-accrual:
Commercial mortgage loans 10  $ 3,588  8  $ 5,938  7  $ 5,151 
Multi-family mortgage loans 5  7,276  2  2,355  1  744 
Construction loans 1  11,698  —  —  1  771 
Residential mortgage loans 20  4,447  10  1,647  7  853 
Total mortgage loans 36  27,009  20  9,940  16  7,519 
Commercial loans 58  39,715  21  36,892  26  41,487 
Consumer loans 24  1,144  11  760  10  633 
Total non-accrual loans 118  $ 67,868  52  $ 47,592  52  $ 49,639 
Non-performing loans to total loans 0.36  % 0.44  % 0.46  %
Allowance for loan losses to total non-performing loans 277.50  % 223.63  % 215.96  %
Allowance for loan losses to total loans 1.00  % 0.98  % 0.99  %
As of June 30, 2024 and December 31, 2023, the Company held foreclosed assets of $11.1 million and $11.7 million, respectively. During the six months ended June 30, 2024, there were three properties sold with an aggregate carrying value of $532,000. Foreclosed assets as of June 30, 2024 consisted primarily of commercial real estate. Total non-performing assets as of June 30, 2024 increased $17.7 million to $79.0 million, or 0.33% of total assets, from $61.3 million, or 0.43% of total assets as of December 31, 2023.
8

Balance Sheet Summary
Total assets as of June 30, 2024 were $24.07 billion, a $9.86 billion increase from December 31, 2023. The increase in total assets was primarily due to the addition of Lakeland.
The Company’s loan portfolio totaled $18.76 billion as of June 30, 2024 and $10.87 billion as of December 31, 2023. The loan portfolio consisted of the following:
June 30, 2024 March 31, 2024 December 31, 2023
(Dollars in thousands)
Mortgage loans:
Commercial $ 7,337,742  $ 4,353,799  $ 4,512,411 
Multi-family 3,189,808  1,825,888  1,812,500 
Construction 970,244  711,417  653,246 
Residential 2,024,027  1,152,185  1,164,956 
Total mortgage loans 13,521,821  8,043,289  8,143,113 
Commercial loans 4,617,232  2,514,550  2,442,406 
Consumer loans 626,016  295,125  299,164 
Total gross loans 18,765,069  10,852,964  10,884,683 
Premiums on purchased loans 1,410  1,439  1,474 
Net deferred fees and unearned discounts (7,149) (11,696) (12,456)
Total loans $ 18,759,330  $ 10,842,707  $ 10,873,701 
As part of the merger with Lakeland, we acquired $7.91 billion in loans, net of purchase accounting adjustments. As of June 30, 2024, the acquired Lakeland loan portfolio, net of fair value marks totaled $7.97 billion, which included $3.02 billion in commercial mortgage loans, $1.49 billion in commercial loans, $1.36 billion in multi-family loans, $878.2 million in residential loans, $564.5 million in specialty lending, $327.3 million in construction loans and $327.2 million in consumer loans. Commercial loans, consisting of commercial real estate, multi-family, commercial and construction loans, represented 85.9% of the loan portfolio as of June 30, 2024, compared to 86.5% as of December 31, 2023.
For the six months ended June 30, 2024, loan funding, including advances on lines of credit, totaled $1.84 billion, compared with $1.79 billion for the same period in 2023.
As of June 30, 2024, the Company’s unfunded loan commitments totaled $3.01 billion, including commitments of $1.51 billion in commercial loans, $664.7 million in construction loans and $186.6 million in commercial mortgage loans. Unfunded loan commitments as of December 31, 2023 and June 30, 2023 were $2.09 billion and $2.02 billion, respectively.
The loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $1.67 billion as of June 30, 2024, compared to $1.09 billion and $1.74 billion as of December 31, 2023 and June 30, 2023, respectively.
Total investment securities were $3.10 billion as of June 30, 2024, a $963.0 million increase from December 31, 2023. This increase was primarily due to the addition of Lakeland.
Total deposits increased $8.06 billion during the six months ended June 30, 2024, to $18.35 billion. Total savings and demand deposit accounts increased $6.07 billion to $15.27 billion as of June 30, 2024, while total time deposits increased $1.99 billion to $3.08 billion as of June 30, 2024. The increase in savings and demand deposits was largely attributable to a $2.88 billion increase in interest bearing demand deposits, a $1.51 billion increase in non-interest bearing demand deposits, a $1.12 billion increase in money market deposits and a $569.5 million increase in savings deposits. The Company's Insured Cash Sweep deposits increased $619.8 million to $1.14 billion as of June 30, 2024, from $520.2 million as of December 31, 2023. The increase in time deposits consisted of a $2.09 billion increase in retail time deposits, partially offset by a $100.5 million decrease in brokered time deposits.
9

Borrowed funds increased $332.0 million during the six months ended June 30, 2024, to $2.30 billion. The increase in deposits and borrowings was largely due to the addition of Lakeland. Borrowed funds represented 9.6% of total assets as of June 30, 2024, a decrease from 13.9% as of December 31, 2023.
Stockholders’ equity increased $865.1 million during the six months ended June 30, 2024, to $2.56 billion, primarily due to common stock issued for the purchase of Lakeland and 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 and six months ended June 30, 2024, common stock repurchases totaled 527 shares at an average cost of $15.17 per share and 86,852 shares at an average cost of $14.84 per share, respectively, all of which were made in connection with withholding to cover income taxes on the vesting of stock-based compensation. As of June 30, 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 June 30, 2024 were $19.60 and $13.07, 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 New Jersey, Bucks, Lehigh and Northampton counties in Pennsylvania, as well as Orange, Queens and Nassau Counties in New York. Provident 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, July 26, 2024 at 10:00 a.m. Eastern Time to discuss the Company’s financial results for the quarter ended June 30, 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 Current Reports on Form 8-K, and those related to the economic environment, particularly in the market areas in which the Company operates, inflation and unemployment, competitive products and pricing, real estate values, fiscal and monetary policies of the U.S. Government, 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, any failure to realize the anticipated benefits of the merger transaction when expected or at all; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected conditions, factors or events, potential adverse reactions or changes to business, employee, customer and/or counterparty 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.
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.
10

Footnotes
(1) Annualized adjusted pre-tax, pre-provision return on average assets, average equity and 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.












11

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Financial Highlights
(Dollars in Thousands, except share data) (Unaudited)
At or for the
Three Months ended 		At or for the
Six Months Ended
June 30, March 31, June 30, June 30, June 30,
2024 2024 2023 2024 2023
Statement of Income
Net interest income $ 141,506  $ 93,670  $ 99,106  $ 235,176  $ 207,430 
Provision for credit losses 69,705  (320) 9,750  69,385  16,490 
Non-interest income 22,275  20,807  19,387  43,081  41,540 
Non-interest expense 115,394  71,827  65,110  187,221  133,858 
(Loss) income before income tax expense (21,318) 42,970  43,633  21,651  98,622 
Net (loss) income (11,485) 32,082  32,003  20,596  72,539 
Diluted earnings per share $ (0.11) $ 0.43  $ 0.43  $ 0.23  $ 0.97 
Interest rate spread 2.58  % 2.26  % 2.60  % 2.46  % 2.84  %
Net interest margin 3.21  % 2.87  % 3.11  % 3.08  % 3.29  %
Profitability
Annualized return on average assets (0.24) % 0.92  % 0.93  % 0.25  % 1.06  %
Annualized return on average equity (2.17) % 7.60  % 7.76  % 2.17  % 8.92  %
Annualized return on average tangible equity (3)
 (3.15) % 10.40  % 10.75  % 3.06  % 12.40  %
Annualized adjusted non-interest expense to average assets (4)
 2.02  % 1.99  % 1.83  % 2.01  % 1.91  %
Efficiency ratio (5)
 57.86  % 60.83  % 53.29  % 59.06  % 52.54  %
Asset Quality
Non-accrual loans $ 47,592  $ 67,868  $ 45,928 
90+ and still accruing —  —  — 
Non-performing loans 47,592  67,868  45,928 
Foreclosed assets 11,324  11,119  13,697 
Non-performing assets 58,916  78,987  59,625 
Non-performing loans to total loans 0.44  % 0.36  % 0.44  %
Non-performing assets to total assets 0.42  % 0.33  % 0.42  %
Allowance for loan losses $ 106,429  $ 188,331  $ 102,073 
Allowance for loan losses to total non-performing loans 223.63  % 277.50  % 222.25  %
Allowance for loan losses to total loans 0.98  % 1.00  % 0.97  %
Net loan charge-offs $ 1,340  $ 971  $ 1,085  $ 2,311  $ 1,756 
Annualized net loan charge-offs to average total loans 0.04  % 0.04  % 0.04  % 0.04  % 0.03  %
Average Balance Sheet Data
Assets $ 19,197,041  $ 14,093,767  $ 13,833,055  $ 16,645,404  $ 13,783,159 
Loans, net 14,649,413  10,668,992  10,238,224  12,659,202  10,166,439 
Earning assets 17,385,819  12,862,910  12,575,967  15,093,217  12,497,684 
Core deposits 12,257,244  9,129,244  9,297,058  10,693,244  9,507,756 
Borrowings 2,158,193  1,940,981  1,658,809  2,049,587  1,442,744 
Interest-bearing liabilities 13,856,039  10,074,106  9,565,814  11,965,072  9,416,020 
Stockholders' equity 2,127,469  1,698,170  1,653,677  1,912,820  1,640,099 
Average yield on interest-earning assets 5.67  % 5.06  % 4.73  % 5.43  % 4.68  %
Average cost of interest-bearing liabilities 3.09  % 2.80  % 2.13  % 2.97  % 1.84  %


12

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) Annualized adjusted pre-tax, pre-provision ("PTPP") returns on average assets, average equity and average tangible equity
Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30, June 30,
2024 2024 2023 2024 2023
Net (loss) income $ (11,485) $ 32,082  $ 32,003  $ 20,596  $ 72,539 
Adjustments to net (loss) income:
Provision for credit losses 69,705  (320) 9,750  69,385  16,490 
Net loss on Lakeland bond sale 2,839  —  —  2,839  — 
Merger-related transaction costs 18,915  2,202  1,960  21,117  3,060 
Income tax (benefit) expense (9,833) 10,888  11,630  1,055  26,083 
PTPP income $ 70,141  $ 44,852  $ 55,343  $ 114,992  $ 118,172 
Annualized PTPP income $ 282,106  $ 180,394  $ 221,980  $ 231,248  $ 238,303 
Average assets $ 19,197,041  $ 14,093,767  $ 13,833,055  $ 16,645,404  $ 13,783,160 
Average equity $ 2,127,469  $ 1,698,170  $ 1,653,677  $ 1,912,820  $ 1,640,099 
Average tangible equity $ 1,468,630  $ 1,240,475  $ 1,193,812  $ 1,354,553  $ 1,179,853 
Annualized PTPP return on average assets 1.47  % 1.28  % 1.60  % 1.39  % 1.73  %
Annualized PTPP return on average equity 13.26  % 10.62  % 13.42  % 12.09  % 14.53  %
Annualized PTPP return on average tangible equity 19.21  % 14.54  % 18.59  % 17.07  % 20.20  %
(2) Book and Tangible Book Value per Share
June 30, December 31,
2024 2023
Total stockholders' equity $ 2,555,646  $ 1,690,596 
Less: total intangible assets 851,507  457,942 
Total tangible stockholders' equity $ 1,704,139  $ 1,232,654 
Shares outstanding 130,380,393  75,537,186 
Book value per share (total stockholders' equity/shares outstanding) $19.60  $22.38 
Tangible book value per share (total tangible stockholders' equity/shares outstanding) $13.07  $16.32 
(3) Annualized Return on Average Tangible Equity
Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30, June 30,
2024 2024 2023 2024 2023
Total average stockholders' equity $ 2,127,469  $ 1,698,170  $ 1,653,677  $ 1,912,820  $ 1,640,099 
Less: total average intangible assets 658,839  457,695  459,865  558,267  460,246 
Total average tangible stockholders' equity $ 1,468,630  $ 1,240,475  $ 1,193,812  $ 1,354,553  $ 1,179,853 
Net (loss) income $ (11,485) $ 32,082  $ 32,003  $ 20,596  $ 72,539 
Annualized return on average tangible equity (net income/total average tangible stockholders' equity) (3.15) % 10.40  % 10.75  % 3.06  % 12.40  %
13

(4) Annualized Adjusted Non-Interest Expense to Average Assets
Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30, June 30,
2024 2024 2023 2024 2023
Reported non-interest expense $ 115,394  $ 71,827  $ 65,110  $ 187,221  $ 133,858 
Adjustments to non-interest expense:
Merger-related transaction costs 18,915  2,202  1,960  21,117  3,060 
Adjusted non-interest expense $ 96,479  $ 69,625  $ 63,150  $ 166,104  $ 130,798 
Annualized adjusted non-interest expense $ 388,036  $ 280,030  $ 253,294  $ 334,033  $ 263,764 
Average assets $ 19,197,041  $ 14,093,767  $ 13,833,055  $ 16,645,404  $ 13,783,160 
Annualized adjusted non-interest expense/average assets 2.02  % 1.99  % 1.83  % 2.01  % 1.91  %
(5) Efficiency Ratio Calculation
Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30, June 30,
2024 2024 2023 2024 2023
Net interest income $ 141,506  $ 93,670  $ 99,106  $ 235,176  $ 207,430 
Reported non-interest income 22,275  20,807  19,387  43,081  41,540 
Adjustments to non-interest income:
Net loss (gain) on securities transactions 2,973  (24) 1  2,974  (24)
Adjusted non-interest income 25,248  20,783  19,388  46,055  41,516 
Total income $ 166,754  $ 114,453  $ 118,494  $ 281,231  $ 248,946 
Adjusted non-interest expense $ 96,479  $ 69,625  $ 63,150  $ 166,104  $ 130,798 
Efficiency ratio (adjusted non-interest expense/income) 57.86  % 60.83  % 53.29  % 59.06  % 52.54  %


14

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Financial Condition
June 30, 2024 (Unaudited) and December 31, 2023
(Dollars in Thousands)
Assets June 30, 2024 December 31, 2023
Cash and due from banks $ 290,528  $ 180,241 
Short-term investments 33  14 
Total cash and cash equivalents 290,561  180,255 
Available for sale debt securities, at fair value 2,626,783  1,690,112 
Held to maturity debt securities, net (fair value of $352,167 as of June 30, 2024 (unaudited) and $352,601 as of December 31, 2023) 350,528  363,080 
Equity securities, at fair value 19,250  1,270 
Federal Home Loan Bank stock 100,068  79,217 
Loans held for sale 4,450  1,785 
Loans held for investment 18,759,330  10,871,916 
Less allowance for credit losses 188,331  107,200 
Net loans 18,575,449  10,766,501 
Foreclosed assets, net 11,119  11,651 
Banking premises and equipment, net 127,396  70,998 
Accrued interest receivable 93,843  58,966 
Intangible assets 851,507  457,942 
Bank-owned life insurance 404,605  243,050 
Other assets 619,358  287,768 
Total assets $ 24,070,467  $ 14,210,810 
Liabilities and Stockholders' Equity
Deposits:
Demand deposits $ 13,526,094  $ 8,020,889 
Savings deposits 1,745,158  1,175,683 
Certificates of deposit of $250,000 or more 871,842  218,549 
Other time deposits 2,210,150  877,393 
Total deposits 18,353,244  10,292,514 
Mortgage escrow deposits 50,694  36,838 
Borrowed funds 2,302,058  1,970,033 
Subordinated debentures 412,766  10,695 
Other liabilities 396,059  210,134 
Total liabilities 21,514,821  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, 137,565,966 shares issued and 130,380,393 shares outstanding as of June 30, 2024 and 75,537,186 outstanding as of December 31, 2023. 1,376  832 
Additional paid-in capital 1,868,643  989,058 
Retained earnings 957,979  974,542 
Accumulated other comprehensive loss (139,964) (141,115)
Treasury stock (129,115) (127,825)
Unallocated common stock held by the Employee Stock Ownership Plan (3,273) (4,896)
Common Stock acquired by the Directors' Deferred Fee Plan (2,398) (2,694)
Deferred Compensation - Directors' Deferred Fee Plan 2,398  2,694 
Total stockholders' equity 2,555,646  1,690,596 
Total liabilities and stockholders' equity $ 24,070,467  $ 14,210,810 
15

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Income
Three months ended June 30, 2024, March 31, 2024 and June 30, 2023, and six months ended June 30, 2024 and 2023 (Unaudited)
(Dollars in Thousands, except per share data)
Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30, June 30,
2024 2024 2023 2024 2023
Interest and dividend income:
Real estate secured loans $ 156,318  $ 107,456  $ 99,302  $ 263,774  $ 195,290 
Commercial loans 58,532  36,100  31,426  94,632  60,109 
Consumer loans 8,351  4,523  4,431  12,874  8,673 
Available for sale debt securities, equity securities and Federal Home Loan Bank stock 20,394  12,330  11,432  32,724  22,862 
Held to maturity debt securities 2,357  2,268  2,357  4,625  4,725 
Deposits, federal funds sold and other short-term investments 1,859  1,182  948  3,041  1,793 
Total interest income 247,811  163,859  149,896  411,670  293,452 
Interest expense:
Deposits 81,058  52,534  36,447  133,592  63,957 
Borrowed funds 20,566  17,383  14,088  37,949  21,564 
Subordinated debt 4,681  272  255  4,953  501 
Total interest expense 106,305  70,189  50,790  176,494  86,022 
Net interest income 141,506  93,670  99,106  235,176  207,430 
Provision charge (benefit) for credit losses 69,705  (320) 9,750  69,385  16,490 
Net interest income after provision for credit losses 71,801  93,990  89,356  165,791  190,940 
Non-interest income:
Fees 8,699  5,912  5,775  14,611  12,162 
Wealth management income 7,769  7,488  6,919  15,257  13,834 
Insurance agency income 4,488  4,793  3,847  9,281  7,950 
Bank-owned life insurance 3,323  1,817  1,534  5,140  3,018 
Net (loss) gain on securities transactions (2,973) (1) 29  (2,974) 24 
Other income 969  798  1,283  1,766  4,552 
Total non-interest income 22,275  20,807  19,387  43,081  41,540 
Non-interest expense:
Compensation and employee benefits 54,888  40,048  35,283  94,936  74,021 
Net occupancy expense 11,142  8,520  7,949  19,662  16,360 
Data processing expense 8,433  6,783  5,716  15,217  11,224 
FDIC Insurance 3,100  2,272  2,125  5,372  4,061 
Amortization of intangibles 6,483  705  749  7,188  1,511 
Advertising and promotion expense 1,171  966  1,379  2,137  2,589 
Merger-related expenses 18,915  2,202  1,960  21,117  3,060 
Other operating expenses 11,262  10,331  9,949  21,592  21,032 
Total non-interest expense 115,394  71,827  65,110  187,221  133,858 
(Loss) Income before income tax expense (21,318) 42,970  43,633  21,651  98,622 
Income tax (benefit) expense (9,833) 10,888  11,630  1,055  26,083 
Net (loss) income $ (11,485) $ 32,082  $ 32,003  $ 20,596  $ 72,539 
Basic earnings per share $ (0.11) $ 0.43  $ 0.43  $ 0.23  $ 0.97 
Average basic shares outstanding 102,957,521 75,260,029 74,823,272 89,108,775 74,734,795
Diluted earnings per share $ (0.11) $ 0.43  $ 0.43  $ 0.23  $ 0.97 
Average diluted shares outstanding 102,957,521 75,275,660 74,830,187 89,116,590 74,766,848
16

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Quarterly Average Balances
 (Dollars in Thousands) (Unaudited)
June 30, 2024 March 31, 2024 June 30, 2023
Average Balance Interest Average
Yield/Cost		 Average Balance Interest Average
Yield/Cost		 Average Balance Interest Average
Yield/Cost
Interest-Earning Assets:
Deposits $ 40,228  $ 1,859  5.38  % $ 87,848  $ 1,182  5.41  % $ 73,470  $ 947  5.17  %
Federal funds sold and other short-term investments —  —  —  % 21 —  —  % 88 1  6.75  %
Available for sale debt securities 2,244,725 17,646 3.14  % 1,673,950 10,022  2.39  % 1,801,050 10,290 2.29  %
Held to maturity debt securities, net (1)
 352,216 2,357 2.68  % 357,246 2,268  2.54  % 379,958 2,357 2.48  %
Equity securities, at fair value 10,373  —  —  % 1,099  —  —  % 1,006  —  —  %
Federal Home Loan Bank stock 88,864 2,747 12.36  % 73,754 2,308 12.52  % 82,171 1,142 5.56  %
Net loans: (2)
Total mortgage loans 10,674,109 156,318 5.81  % 7,990,218 107,456 5.33  % 7,701,072 99,302 5.11  %
Total commercial loans 3,514,602 58,532 6.62  % 2,381,965 36,100 6.03  % 2,234,043 31,426 5.59  %
Total consumer loans 460,702 8,351 7.29  % 296,809 4,523 6.13  % 303,109 4,431 5.86  %
Total net loans 14,649,413 223,201 6.05  % 10,668,992 148,079 5.51  % 10,238,224 135,159 5.24  %
Total interest-earning assets $ 17,385,819  $ 247,810  5.67  % $ 12,862,910  $ 163,859  5.06  % $ 12,575,967  $ 149,896  4.73  %
Non-Interest Earning Assets:
Cash and due from banks 37,621 116,563 129,979
Other assets 1,773,601  1,114,294  1,127,109
Total assets $ 19,197,041  $ 14,093,767  $ 13,833,055 
Interest-Bearing Liabilities:
Demand deposits $ 7,935,543  $ 58,179  2.95  % $ 5,894,062  $ 41,566  2.84  % $ 5,620,268  $ 28,613  2.04  %
Savings deposits 1,454,784 832 0.23  % 1,163,181 637 0.22  % 1,307,830 537 0.16  %
Time deposits 2,086,433 22,047 4.25  % 1,065,170 10,331 3.90  % 968,344 7,297 3.02  %
Total Deposits 11,476,760 81,058 2.84  % 8,122,413 52,534 2.60  % 7,896,442 36,447 1.85  %
Borrowed funds 2,158,193 20,565 3.83  % 1,940,981 17,383 3.60  % 1,658,809 14,088 3.41  %
Subordinated debentures 221,086  4,681  8.52  % 10,712  272  10.23  % 10,563  255  9.66  %
Total interest-bearing liabilities 13,856,039 106,304 3.09  % 10,074,106 70,189 2.80  % 9,565,814 50,790 2.13  %
Non-Interest Bearing Liabilities:
Non-interest bearing deposits 2,866,917 2,072,001 2,368,960
Other non-interest bearing liabilities 346,616 249,490 244,604
Total non-interest bearing liabilities 3,213,533 2,321,491 2,613,564
Total liabilities 17,069,572 12,395,597 12,179,378
Stockholders' equity 2,127,469 1,698,170 1,653,677
Total liabilities and stockholders' equity $ 19,197,041  $ 14,093,767  $ 13,833,055 
Net interest income $ 141,506  $ 93,670  $ 99,106 
Net interest rate spread 2.58  % 2.26  % 2.60  %
Net interest-earning assets $ 3,529,780  $ 2,788,804  $ 3,010,153 
Net interest margin (3)
3.21  % 2.87  % 3.11  %
Ratio of interest-earning assets to total interest-bearing liabilities 1.25x 1.28x 1.31x
(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.
17

The following table summarizes the quarterly net interest margin for the previous five quarters.
6/30/24 3/31/24 12/31/23 9/30/23 6/30/23
2nd Qtr. 1st Qtr. 4th Qtr. 3rd Qtr. 2nd Qtr.
Interest-Earning Assets:
Securities 3.40  % 2.87  % 2.79  % 2.67  % 2.53  %
Net loans 6.05  % 5.51  % 5.50  % 5.37  % 5.24  %
Total interest-earning assets 5.67  % 5.06  % 5.04  % 4.89  % 4.73  %
Interest-Bearing Liabilities:
Total deposits 2.84  % 2.60  % 2.47  % 2.22  % 1.85  %
Total borrowings 3.83  % 3.60  % 3.71  % 3.74  % 3.41  %
Total interest-bearing liabilities 3.09  % 2.80  % 2.71  % 2.50  % 2.13  %
Interest rate spread 2.58  % 2.26  % 2.33  % 2.39  % 2.60  %
Net interest margin 3.21  % 2.87  % 2.92  % 2.96  % 3.11  %
Ratio of interest-earning assets to interest-bearing liabilities 1.25x 1.28x 1.28x 1.30x 1.31x


















18

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Average Year to Date Balances
(Dollars in Thousands) (Unaudited)
June 30, 2024 June 30, 2023
Average Average Average Average
Balance Interest Yield/Cost Balance Interest Yield/Cost
Interest-Earning Assets:
Deposits $ 32,901  $ 3,041  5.38  % $ 72,750  $ 1,791  4.97  %
Federal funds sold and other short term investments —  —  —  % 59  2  6.00  %
Available for sale debt securities 1,959,549  27,669  2.82  % 1,804,814  20,692  2.29  %
Held to maturity debt securities, net (1)
 354,731  4,625  2.61  % 381,921  4,725  2.47  %
Equity securities, at fair value 5,525  —  —  % 999  —  —  %
Federal Home Loan Bank stock 81,309  5,055  12.43  % 70,702  2,170  6.14  %
Net loans: (2)
Total mortgage loans 9,326,838  263,774  5.61  % 7,671,493  195,290  5.07  %
Total commercial loans 2,953,842  94,632  6.39  % 2,191,222  60,109  5.49  %
Total consumer loans 378,522  12,874  6.84  % 303,724  8,673  5.76  %
Total net loans 12,659,202  371,280  5.83  % 10,166,439  264,072  5.18  %
Total interest-earning assets $ 15,093,217  $ 411,670  5.43  % $ 12,497,684  $ 293,452  4.68  %
Non-Interest Earning Assets:
Cash and due from banks 108,229  136,431 
Other assets 1,443,958  1,149,044 
Total assets $ 16,645,404  $ 13,783,159 
Interest-Bearing Liabilities:
Demand deposits $ 6,914,802  $ 99,745  2.90  % $ 5,695,507  $ 50,533  1.79  %
Savings deposits 1,308,983  1,469  0.23  % 1,352,874  990  0.15  %
Time deposits 1,575,801  32,378  4.13  % 914,358  12,434  2.74  %
Total deposits 9,799,586  133,592  2.74  % 7,962,739  63,957  1.62  %
Borrowed funds 2,049,587  37,949  3.75  % 1,442,744  21,564  3.01  %
Subordinated debentures 115,899  4,953  8.59  % 10,537  501  9.58  %
Total interest-bearing liabilities $ 11,965,072  $ 176,494  2.97  % $ 9,416,020  $ 86,022  1.84  %
Non-Interest Bearing Liabilities:
Non-interest bearing deposits 2,469,459  2,459,375 
Other non-interest bearing liabilities 298,053  267,666 
Total non-interest bearing liabilities 2,767,512  2,727,041 
Total liabilities 14,732,584  12,143,061 
Stockholders' equity 1,912,820  1,640,099 
Total liabilities and stockholders' equity $ 16,645,404  $ 13,783,160 
Net interest income $ 235,176  $ 207,430 
Net interest rate spread 2.46  % 2.84  %
Net interest-earning assets $ 3,128,145  $ 3,081,664 
Net interest margin (3)
3.08  % 3.29  %
Ratio of interest-earning assets to total interest-bearing liabilities 1.26x 1.33x
(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.
19

The following table summarizes the year-to-date net interest margin for the previous three years.
Six Months Ended
June 30, 2024 June 30, 2023 June 30, 2022
Interest-Earning Assets:
Securities 3.14  % 2.52  % 1.59  %
Net loans 5.83  % 5.18  % 3.84  %
Total interest-earning assets 5.43  % 4.68  % 3.33  %
Interest-Bearing Liabilities:
Total deposits 2.74  % 1.62  % 0.26  %
Total borrowings 3.75  % 3.01  % 0.85  %
Total interest-bearing liabilities 2.97  % 1.84  % 0.30  %
Interest rate spread 2.46  % 2.84  % 3.03  %
Net interest margin 3.08  % 3.29  % 3.11  %
Ratio of interest-earning assets to interest-bearing liabilities 1.26x 1.33x 1.39x




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