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Provident Financial Services, Inc. Reports Third Quarter Earnings

ISELIN, NJ, October 29, 2025 - Provident Financial Services, Inc. (NYSE:PFS) (the “Company”) reported net income of $71.7 million, or $0.55 per basic and diluted share for the three months ended September 30, 2025, compared to $72.0 million, or $0.55 per basic and diluted share, for the three months ended June 30, 2025 and $46.4 million, or $0.36 per basic and diluted share, for the three months ended September 30, 2024. For the nine months ended September 30, 2025, net income totaled $207.7 million, or $1.59 per basic and diluted share, compared to $67.0 million, or $0.65 per basic and diluted share, for the nine months ended September 30, 2024. While there were no transaction costs related to our merger with Lakeland Bancorp, Inc. (“Lakeland”) during 2025, for the three and nine months ended September 30, 2024, these costs totaled $15.6 million and $96.8 million, respectively, including an initial Current Expected Credit Loss ("CECL") provision for credit losses on loans of $60.1 million recorded as part of the Lakeland merger.

Anthony J. Labozzetta, President and Chief Executive Officer commented, “Provident continued to make progress on several strategic initiatives and delivered another impressive performance this quarter. We again achieved record revenues and pre-tax, pre-provision earnings by responsibly growing earning assets and deposits, while further improving operational efficiency and maintaining strong asset quality. We continued to invest in accomplished talent and technology and look forward to the sustained growth of our business and profitability.”
Performance Highlights for the Third Quarter of 2025
•The Company's annualized returns on average assets, average equity and average tangible equity(1) were 1.16%, 10.39% and 16.01% for the quarter ended September 30, 2025, compared to 1.19%, 10.76% and 16.79% for the quarter ended June 30, 2025. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 12 of the earnings release.
•The Company's annualized adjusted pre-tax, pre-provision returns on average assets, average equity and average tangible equity(2) were 1.76%, 15.74% and 22.20% for the quarter ended September 30, 2025, compared to 1.64%, 14.88% and 21.26% for the quarter ended June 30, 2025. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 12 of the earnings release.
•The Company reported record revenue for a second consecutive quarter of $221.8 million for the three months ended September 30, 2025, comprised of record net interest income of $194.3 million and non-interest income of $27.4 million, compared to revenue of $214.2 million for the prior quarter.
•Average interest-earning assets increased $162.8 million, or an annualized 2.9%, for the quarter ended September 30, 2025, versus the trailing quarter.
•The Company’s commercial and industrial ("C&I") loan portfolio, excluding mortgage warehouse lines, increased $149.0 million, or 12.61% annualized, to $4.84 billion as of September 30, 2025, from $4.69 billion as of June 30, 2025. Additionally, the Company's total commercial loan portfolio, including mortgage warehouse lines, commercial mortgage, multi-family and construction loans, increased $191.2 million, or 4.59% annualized, to $16.70 billion as of September 30, 2025, from $16.51 billion as of June 30, 2025.
•The Company's total deposits increased $387.7 million, or 8.22% annualized, to $19.10 billion as of September 30, 2025, from $18.71 billion as of June 30, 2025, while total core deposits, which excludes certificates of deposits, increased $290.8 million, or 7.47% annualized, to $15.73 billion as of September 30, 2025, from $15.44 billion as of June 30, 2025.
•As of September 30, 2025, the Company's loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $2.87 billion, with a weighted average interest rate of 6.15%, compared to $2.59 billion, with a weighted average interest rate of 6.30%, as of June 30, 2025.
•The net interest margin increased seven basis points to 3.43% for the quarter ended September 30, 2025, from 3.36% for the trailing quarter, while the core net interest margin, which excludes the impact of purchase
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accounting accretion and amortization, increased one basis point to 2.94%. The weighted average yield on interest-earning assets for the quarter ended September 30, 2025 increased eight basis points to 5.76%, compared to the trailing quarter, while the weighted average cost of interest-bearing liabilities for the quarter ended September 30, 2025 increased two basis points to 2.96%, compared to the trailing quarter.
•The Company recorded a $7.0 million provision for credit losses for the quarter ended September 30, 2025, which included a $4.5 million provision on loans and a $2.5 million provision on commitments, compared to a $2.9 million benefit to the provision for credit losses for the trailing quarter. Non-performing assets to total assets improved to 0.41% as of September 30, 2025, and annualized net charge-offs were 0.11% of loans for the quarter. The allowance for credit losses as a percentage of loans decreased to 0.97% as of September 30, 2025, from 0.98% as of June 30, 2025.
•Tangible book value per share(3) increased 3.6% to $15.13 and our tangible common equity ratio increased 19 basis points to 8.22% as of September 30, 2025. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 13 of the earnings release.
•As of September 30, 2025, multi-family CRE loans secured by New York City properties totaled $286.7 million. This portfolio constitutes only 1.5% of total loans and has an average loan size of $3.0 million. Loans that are collateralized by rent stabilized apartments comprise less than 1.00% of the total loan portfolio and are all performing.
•As of September 30, 2025, the Company had no financial risk or investment tied to non-depository financial institutions, with the exception of our mortgage warehouse lines of credit portfolio, which totaled $292.1 million.
Results of Operations
Three months ended September 30, 2025 compared to the three months ended June 30, 2025
For the three months ended September 30, 2025, the Company reported net income of $71.7 million, or $0.55 per basic and diluted share, compared to net income of $72.0 million, or $0.55 per basic and diluted share, for the three months ended June 30, 2025.
Net Interest Income and Net Interest Margin
Net interest income increased $7.2 million to $194.3 million for the three months ended September 30, 2025, from $187.1 million for the trailing quarter. The increase in net interest income was primarily due to originations of new loans and securities at current market rates, partially offset by a decrease in average lower-costing deposits.

The Company’s net interest margin increased seven basis points to 3.43% for the quarter ended September 30, 2025, from 3.36% for the trailing quarter. The weighted average yield on interest-earning assets for the quarter ended September 30, 2025 increased eight basis points to 5.76%, compared to the trailing quarter. The weighted average cost of interest-bearing liabilities for the quarter ended September 30, 2025 increased two basis points to 2.96% from the trailing quarter. The average cost of interest-bearing deposits for the quarter ended September 30, 2025 increased five basis points to 2.67% from the trailing quarter. Average non-interest bearing deposits increased $25.5 million to $3.73 billion for the quarter ended September 30, 2025, compared to $3.70 billion for the quarter ended June 30, 2025. The average cost of total deposits, including non-interest-bearing deposits, was 2.14% for the quarter ended September 30, 2025, compared to 2.10% for the trailing quarter. The average cost of borrowed funds for the quarter ended September 30, 2025 was 3.96%, compared to 3.94% for the quarter ended June 30, 2025.
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Provision for Credit Losses on Loans
For the quarter ended September 30, 2025, the Company recorded a $4.5 million provision for credit losses on loans, compared with a benefit to the provision for credit losses on loans of $2.7 million for the quarter ended June 30, 2025. The provision for credit losses on loans in the quarter was primarily attributable to overall growth in the loan portfolio, combined with a modestly weakened CECL economic forecast compared to the prior quarter. For the three months ended September 30, 2025, net charge-offs totaled $5.4 million, or an annualized 11 basis points of average loans, compared with net charge-offs of $1.2 million, or an annualized 3 basis points of average loans for the trailing quarter. Charge-offs in the current quarter were related to the resolution of several non-accrual loans that were largely specifically reserved for in prior periods. Non-accrual loans decreased $6.8 million this quarter to $100.4 million, or 0.52% of total loans.
Non-Interest Income and Expense
For the three months ended September 30, 2025, non-interest income totaled $27.4 million, an increase of $344,000, compared to the trailing quarter. Fee income increased $600,000 to $11.3 million for the three months ended September 30, 2025, compared to the trailing quarter, primarily due to an increase in loan prepayment fee income, partially offset by a decrease in ATM fee income. Wealth management income increased $401,000 to $7.3 million for the three months ended September 30, 2025, compared to the trailing quarter, mainly due to an increase in the average market value of assets under management during the period. Additionally, other non-interest income increased $289,000 to $2.2 million for the three months ended September 30, 2025, primarily related to increases in swap-related fee income. Partially offsetting these increases in non-interest income, insurance agency income decreased $1.1 million to $3.9 million for the three months ended September 30, 2025, compared to the trailing quarter, mainly due to normal seasonality of business activity in the current quarter.
Non-interest expense totaled $113.1 million for the three months ended September 30, 2025, a decrease of $1.5 million, compared to $114.6 million for the trailing quarter. Other operating expenses decreased $1.0 million to $13.5 million for the three months ended September 30, 2025, compared to $14.5 million for the trailing quarter, driven by decreases in legal, professional and other miscellaneous expenses. Data processing expense decreased $497,000 to $9.1 million, compared to $9.6 million for the trailing quarter, primarily due to decreased software maintenance expense, while net occupancy expense decreased $238,000 to $12.8 million for the three months ended September 30, 2025, compared to $13.0 million for the trailing quarter, primarily due to decreases in maintenance and depreciation expense. Partially offsetting these decreases in non-interest expense, advertising expense increased $211,000 to $1.6 million for the three months ended September 30, 2025, compared to $1.4 million for the trailing quarter as a result of additional marketing campaigns in the current quarter.
The Company’s annualized adjusted non-interest expense as a percentage of average assets(5) improved to 1.83% for the quarter ended September 30, 2025, compared to 1.89% for the trailing quarter. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)(6) improved to 51.01% for the three months ended September 30, 2025, compared to 53.52% for the trailing quarter.
Income Tax Expense
For the three months ended September 30, 2025, the Company's income tax expense was $29.9 million with an effective tax rate of 29.4%, compared to income tax expense of $30.5 million with an effective tax rate of 29.7%, for the trailing quarter.
Three months ended September 30, 2025 compared to the three months ended September 30, 2024
For the three months ended September 30, 2025, the Company reported net income of $71.7 million, or $0.55 per basic and diluted share, compared to net income of $46.4 million, or $0.36 per basic and diluted share, for the three months ended September 30, 2024. While there were no transaction costs related to our merger with Lakeland during 2025, these costs totaled $15.6 million for the three months ended September 30, 2024.


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Net Interest Income and Net Interest Margin
Net interest income increased $10.6 million to $194.3 million for the three months ended September 30, 2025, from $183.7 million for same period in 2024. The increase in net interest income was primarily due to favorable repricing of deposits and growth in the securities portfolio at favorable market rates.
The Company’s net interest margin increased 12 basis points to 3.43% for the quarter ended September 30, 2025, from 3.31% for the same period last year. The weighted average yield on interest-earning assets for the quarter ended September 30, 2025 decreased eight basis point to 5.76%, compared to 5.84% for the quarter ended September 30, 2024. The weighted average cost of interest-bearing liabilities decreased 23 basis points for the quarter ended September 30, 2025 to 2.96%, compared to 3.19% for the third quarter of 2024. The average cost of interest-bearing deposits for the quarter ended September 30, 2025 was 2.67%, compared to 2.96% for the same period last year. Average non-interest-bearing demand deposits decreased $15.5 million to $3.73 billion for the quarter ended September 30, 2025, compared to $3.74 billion for the quarter ended September 30, 2024. The average cost of total deposits, including non-interest-bearing deposits, was 2.14% for the quarter ended September 30, 2025, compared with 2.36% for the quarter ended September 30, 2024. The average cost of borrowed funds for the quarter ended September 30, 2025 was 3.96%, compared to 3.73% for the same period last year.
Provision for Credit Losses on Loans
For the quarter ended September 30, 2025, the Company recorded a $4.5 million provision for credit losses on loans, compared with a $9.6 million provision for credit losses on loans for the quarter ended September 30, 2024. The provision for credit losses on loans in the quarter was primarily attributable to growth in the loan portfolio, combined with a modestly weakened CECL economic forecast compared to the prior year period. For the three months ended September 30, 2025, net charge-offs totaled $5.4 million, or an annualized 11 basis points of average loans, compared with net charge-offs of $6.8 million, or an annualized 14 basis points of average loans, for the same period last year. Charge-offs in the current quarter were related to the resolution of several non-accrual loans that were largely specifically reserved for in prior periods.
Non-Interest Income and Expense
Non-interest income totaled $27.4 million for the quarter ended September 30, 2025, an increase of $564,000, compared to the same period in 2024. Fee income increased $1.5 million to $11.3 million for the three months ended September 30, 2025, compared to the prior year quarter, primarily due to increases in loan prepayment fee income and deposit fee income. Additionally, other income increased $675,000 to $2.2 million for the three months ended September 30, 2025, compared to the quarter ended September 30, 2024, primarily due to an increase in gains on loan sales, combined with increases in other miscellaneous income. Insurance agency income increased $221,000 to $3.9 million for the three months ended September 30, 2025, compared to the quarter ended September 30, 2024, largely due to an increase in business activity. Partially offsetting these increases to non-interest income, BOLI income decreased $1.6 million to $2.7 million for the three months ended September 30, 2025, compared to the prior year quarter, primarily due to a decrease in benefit claims recognized, while wealth management fees decreased $271,000 to $7.3 million for the three months ended September 30, 2025, compared to the quarter ended September 30, 2024.
For the three months ended September 30, 2025, non-interest expense totaled $113.1 million, a decrease of $22.9 million, compared to the three months ended September 30, 2024. Merger-related expenses decreased $15.6 million for the three months ended September 30, 2025, compared to the same period in 2024. Amortization of intangibles decreased $2.7 million to $9.5 million for the three months ended September 30, 2025, compared to $12.2 million for the same period in 2024, largely due to a decrease in the core deposit intangible amortization related to the Lakeland merger in the current year. Additionally, other operating expenses decreased $2.3 million to $13.5 million for the three months ended September 30, 2025, compared to $15.8 million for the same period in 2024, primarily due to a prior year write-down on a foreclosed property, combined with decreases in legal and professional service expenses. Data processing expenses decreased $1.4 million to $9.1 million for three months ended September 30, 2025, compared to $10.5 million for the same period in 2024, primarily due to core processing system expenses in the prior year related to the addition of Lakeland.
The Company’s annualized adjusted non-interest expense as a percentage of average assets(5) improved to 1.83% for the quarter ended September 30, 2025, compared to 1.98% for the same period in 2024. The efficiency ratio (adjusted
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non-interest expense divided by the sum of net interest income and non-interest income)(6) improved to 51.01% for the three months ended September 30, 2025 compared to 57.20% for the same respective period in 2024.
Income Tax Expense
For the three months ended September 30, 2025, the Company's income tax expense was $29.9 million with an effective tax rate of 29.4%, compared with $18.9 million with an effective tax rate of 28.9% for the three months ended September 30, 2024. The increase in tax expense and the effective tax rate for the three months ended September 30, 2025, compared with the same period last year was largely due to an increase in pre-tax income with a greater proportion of that income attributable to taxable sources.
Nine months ended September 30, 2025 compared to the nine months ended September 30, 2024
For the nine months ended September 30, 2025, net income totaled $207.7 million, or $1.59 per basic and diluted share, compared to net income of $67.0 million, or $0.65 per basic and diluted share, for the nine months ended September 30, 2024. While there were no transaction costs related to our merger with Lakeland in 2025, those costs totaled $96.8 million, including an initial CECL provision for credit losses on loans recorded as part of the Lakeland merger, for the nine months ended September 30, 2024.
Net Interest Income and Net Interest Margin
Net interest income increased $144.3 million to $563.2 million for the nine months ended September 30, 2025, from $418.9 million for same period in 2024. The increase in net interest income was largely driven by growth in average earning assets including net assets added in the May 16, 2024 acquisition of Lakeland and related accretion of purchase accounting adjustments, further aided by lower rates on funding.
For the nine months ended September 30, 2025, the net interest margin increased 20 basis points to 3.38%, compared to 3.18% for the nine months ended September 30, 2024. The weighted average yield on interest earning assets increased eight basis points to 5.69% for the nine months ended September 30, 2025, compared to 5.61% for the nine months ended September 30, 2024, while the weighted average cost of interest-bearing liabilities decreased 13 basis points to 2.93% for the nine months ended September 30, 2025, compared to 3.06% for the same period last year. The average cost of interest-bearing deposits decreased 20 basis points to 2.64% for the nine months ended September 30, 2025, compared to 2.84% for the same period last year. Average non-interest-bearing demand deposits increased $818.6 million to $3.72 billion for the nine months ended September 30, 2025, compared with $2.90 billion for the nine months ended September 30, 2024. The average cost of total deposits, including non-interest-bearing deposits, was 2.12% for the nine months ended September 30, 2025, compared with 2.27% for the nine months ended September 30, 2024. The average cost of borrowings for the nine months ended September 30, 2025 was 3.89%, compared to 3.73% for the same period last year.
Provision for Credit Losses on Loans
For the nine months ended September 30, 2025, the Company recorded a $2.2 million provision for credit losses on loans, compared with a provision for credit losses on loans of $75.9 million for the nine months ended September 30, 2024. The provision for credit losses on loans for the nine months ended September 30, 2025 was primarily attributable to overall growth in the loan portfolio, combined with a modestly weakened CECL economic forecast. The provision for credit losses on loans for the prior year period 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 nine months ended September 30, 2025, net charge-offs totaled $8.6 million or an annualized six basis points of average loans, compared with net charge-offs of $9.1 million, or an annualized eight basis points of average loans, for the nine months ended September 30, 2024.
Non-Interest Income and Expense
For the nine months ended September 30, 2025, non-interest income totaled $81.5 million, an increase of $11.6 million compared to the same period in 2024. Fee income increased $7.3 million to $31.7 million for the nine months ended September 30, 2025, compared to the same period in 2024, primarily due to increases in deposit fee income, loan prepayment fee income and debit and credit card related fee income. Net gains on securities transactions increased $3.1 million for the nine months ended September 30, 2025, primarily due to a prior year $2.8 million loss
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on the sale of subordinated debt issued by Lakeland from the Provident investment portfolio prior to the merger. Other income increased $3.0 million to $6.2 million for the nine months ended September 30, 2025, compared to $3.2 million for the same period in 2024, primarily due to an increase in gains on sales of SBA and mortgage loans and other miscellaneous income. Additionally, insurance agency income increased $1.5 million to $14.4 million for the nine months ended September 30, 2025, compared to $12.9 million for the same period in 2024, largely due to increases in contingent commissions, retention revenue and new business activity. Partially offsetting these increases in non-interest income, BOLI income decreased $2.1 million to $7.3 million for the nine months ended September 30, 2025, compared to the same period in 2024, primarily due to a decrease in benefit claims recognized, combined with lower equity valuations, while wealth management income decreased $1.3 million to $21.6 million for the nine months ended September 30, 2025, compared to the same period in 2024, mainly due to a decrease in the average market value of assets under management during the period.
Non-interest expense totaled $344.0 million for the nine months ended September 30, 2025, an increase of $20.7 million, compared to $323.2 million for the nine months ended September 30, 2024. Compensation and benefits expense increased $30.4 million to $188.8 million for the nine months ended September 30, 2025, compared to $158.4 million for the nine months ended September 30, 2024, primarily attributable to the addition of Lakeland personnel. Amortization of intangibles increased $9.1 million to $28.5 million for the nine months ended September 30, 2025, compared to $19.4 million for the nine months ended September 30, 2024, largely due to core deposit intangible amortization related to Lakeland. Net occupancy expense increased $7.3 million to $39.7 million for the nine months ended September 30, 2025, compared to the same period in 2024, primarily due to increases in depreciation and maintenance expense related to the addition of Lakeland. Other operating expenses increased $7.0 million to $44.4 million for the nine months ended September 30, 2025, compared to $37.4 million for the same period in 2024, primarily due to a $1.4 million increase in write-downs on foreclosed property, combined with additional expenses due to the addition of Lakeland. Data processing expense increased $2.6 million to $28.3 million for the nine months ended September 30, 2025, compared to $25.7 million for the nine months ended September 30, 2024, primarily due to the addition of Lakeland, while FDIC insurance increased $591,000 to $10.1 million for the nine months ended September 30, 2025, primarily due to the addition of Lakeland. Partially offsetting these increases to non-interest expense, merger-related expenses decreased $36.7 million for the nine months ended September 30, 2025.
Income Tax Expense
For the nine months ended September 30, 2025, the Company's income tax expense was $88.2 million with an effective tax rate of 29.8%, compared with income tax expense of $19.9 million for the nine months ended September 30, 2024. The increase in tax expense for the nine months ended September 30, 2025 compared with the same period last year was largely due to an increase in taxable income, combined with a prior year $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, effective January 1, 2024. Additionally, prior year pre-tax income was negatively impacted by the initial CECL provision for credit losses on loans of $60.1 million recorded in accordance with GAAP requirements for accounting for business combinations from the Lakeland merger.
Asset Quality
The Company’s total non-performing loans as of September 30, 2025 were $100.4 million, or 0.52% of total loans held for investment, compared to $107.2 million, or 0.56% of total loans as of June 30, 2025 and $72.1 million, or 0.39% of total loans as of December 31, 2024. The $6.8 million decrease in non-performing loans as of September 30, 2025, compared to the trailing quarter, consisted of a $5.7 million decrease in non-performing multi-family loans, a $3.8 million decrease in non-performing commercial mortgage loans and a $159,000 decrease in non-performing consumer loans, partially offset by a $2.0 million increase in non-performing commercial loans, a $649,000 increase in non-performing residential mortgage loans and a $319,000 increase in non-performing construction loans. As of September 30, 2025, impaired loans totaled $85.4 million with related specific reserves of $6.2 million, compared with impaired loans totaling $92.7 million with related specific reserves of $11.4 million as of June 30, 2025. As of December 31, 2024, impaired loans totaled $55.4 million with related specific reserves of $7.5 million.
As of September 30, 2025, the Company’s allowance for credit losses related to the loan portfolio was 0.97% of total loans, compared to 0.98% and 1.04% as of June 30, 2025 and December 31, 2024, respectively. The allowance for
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credit losses decreased $6.5 million to $187.0 million as of September 30, 2025, from $193.4 million as of December 31, 2024. The decrease in the allowance for credit losses on loans as of September 30, 2025 compared to December 31, 2024 was due to net charge-offs of $8.7 million, partially offset by a $2.2 million provision for credit losses on loans.
The following table sets forth accruing past due loans and non-accrual loans held for investment on the dates indicated, as well as delinquency statistics and certain asset quality ratios.
 September 30, 2025June 30, 2025December 31, 2024
 
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 loans3 $956 1 $129 7 $8,538 
Multi-family mortgage loans— — — — — — 
Construction loans— — — — — — 
Residential mortgage loans32 8,085 20 5,541 22 6,388 
Total mortgage loans35 9,041 21 5,670 29 14,926 
Commercial loans8 729 4 997 9 3,026 
Consumer loans40 2,739 30 1,592 47 3,152 
Total 30 to 59 days past due83 $12,509 55 $8,259 85 $21,104 
60 to 89 days past due:
Commercial mortgage loans4 $4,314 1 $347 4 $3,954 
Multi-family mortgage loans1 879 1 431 — — 
Construction loans— — — — — — 
Residential mortgage loans22 6,180 16 3,816 17 5,049 
Total mortgage loans27 11,373 18 4,594 21 9,003 
Commercial loans4 1,390 13 4,389 3 1,117 
Consumer loans11 299 9 699 15 856 
Total 60 to 89 days past due42 13,062 40 9,682 39 10,976 
Total accruing past due loans125 $25,571 95 $17,941 124 $32,080 
Non-accrual:
Commercial mortgage loans13 $39,036 15 $42,828 17 $20,883 
Multi-family mortgage loans1 424 3 6,143 6 7,498 
Construction loans2 19,220 3 18,901 2 13,246 
Residential mortgage loans29 7,858 25 7,209 23 4,535 
Total mortgage loans45 66,538 46 75,081 48 46,162 
Commercial loans42 32,483 34 30,531 32 24,243 
Consumer loans19 1,388 21 1,547 23 1,656 
Total non-accrual loans106 $100,409 101 $107,159 103 $72,061 
Non-performing loans to total loans held for investment0.52 %0.56 %0.39 %
Allowance for loan losses to total non-performing loans186.21 %175.32 %268.43 %
Allowance for loan losses to total loans held for investment0.97 %0.98 %1.04 %
At September 30, 2025 and June 30, 2025, there were no non-accrual or past due loans held for sale, respectively. At December 31, 2024, total non-accrual loans held for sale, which are not in the table above, totaled $2.4 million.
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Additionally, at December 31, 2024, total past due loans held for sale, including non-accrual loans held for sale, totaled $4.8 million.
At September 30, 2025 and December 31, 2024, the Company held foreclosed assets of $2.0 million and $9.5 million, respectively. During the nine months ended September 30, 2025, there was a write-down of one foreclosed commercial property of $2.7 million based on a contracted sales price. The sale of this property closed in the second quarter of 2025, which reduced foreclosed assets by an additional $5.8 million. There was one addition to foreclosed assets with an aggregate carrying value of $1.0 million. Foreclosed assets as of September 30, 2025 were comprised of two commercial properties. Total non-performing assets at September 30, 2025 increased $20.9 million to $102.4 million, or 0.41% of total assets, from $81.5 million, or 0.34% of total assets at December 31, 2024.
Balance Sheet Summary
Total assets as of September 30, 2025 were $24.83 billion, a $780.9 million increase from December 31, 2024. The increase in total assets was primarily due to a $626.7 million increase in loans held for investment and a $344.3 million increase in total investments, partially offset by a $148.1 million decrease in loans held for sale, and decreases in intangibles and other assets.
The Company’s loans held for investment portfolio totaled $19.29 billion as of September 30, 2025 and $18.66 billion as of December 31, 2024. The loan portfolio consisted of the following:
September 30, 2025June 30, 2025December 31, 2024
(Dollars in thousands)
Mortgage loans:
Commercial$7,318,725 $7,313,904 $7,228,078 
Multi-family3,534,751 3,517,509 3,382,933 
Construction719,961 751,914 823,503 
Residential1,977,483 1,985,355 2,010,637 
Total mortgage loans13,550,920 13,568,682 13,445,151 
Commercial loans4,837,934 4,688,888 4,447,672 
Mortgage warehouse lines292,133 240,134 160,928 
Consumer loans614,983 617,190 613,819 
Total gross loans19,295,970 19,114,894 18,667,570 
Premiums on purchased loans1,362 1,308 1,338 
Net deferred fees and unearned discounts(11,265)(11,372)(9,538)
Total loans$19,286,067 $19,104,830 $18,659,370 
During the three months ended September 30, 2025, the loans held for investment portfolio had net increases of $149.0 million of commercial loans, $52.0 million of mortgage warehouse lines, $17.2 million of multi-family loans and $4.8 million of commercial mortgage loans, partially offset by net decreases of $32.0 million of construction loans, $7.9 million of residential mortgage loans and $2.2 million of consumer loans. Total commercial loans, including mortgage warehouse lines, commercial mortgage, multi-family and construction loans, represented 86.6% of the loan portfolio as of September 30, 2025, compared to 85.9% as of December 31, 2024.
For the nine months ended September 30, 2025, loan funding, including advances on lines of credit, totaled $7.00 billion, compared with $2.53 billion for the same period in 2024.
As of September 30, 2025, the Company’s unfunded loan commitments totaled $3.82 billion, including commitments of $2.20 billion in commercial loans, $572.9 million in construction loans and $312.0 million in commercial mortgage loans. Unfunded loan commitments as of December 31, 2024 and September 30, 2024 were $2.73 billion and $2.97 billion, respectively.
The loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $2.89 billion as of September 30, 2025, compared to $1.79 billion and $1.98 billion as of December 31, 2024 and September 30, 2024, respectively.
8

Total investment securities were $3.57 billion as of September 30, 2025, a $344.3 million increase from December 31, 2024. This increase was primarily due to purchases of mortgage-backed securities and a decrease in unrealized losses on available for sale debt securities.
Total deposits increased $472.4 million during the nine months ended September 30, 2025, to $19.10 billion. Total savings and demand deposit accounts increased $276.2 million to $15.73 billion as of September 30, 2025, while total time deposits increased $196.2 million to $3.36 billion as of September 30, 2025. The increase in time deposits consisted of a $204.3 million increase in brokered time deposits, partially offset by an $8.1 million decrease in retail time deposits. The increase in savings and demand deposits was largely attributable to $270.6 million increase in interest bearing demand deposits and a $144.5 million increase in money market deposits, partially offset by a $101.7 million decrease in savings deposits and a $37.2 million decrease in non-interest bearing demand deposits.
Borrowed funds increased $188.9 million during the nine months ended September 30, 2025, to $2.21 billion. Borrowed funds represented 8.9% of total assets as of September 30, 2025, an increase from 8.4% as of December 31, 2024.
Stockholders’ equity increased $165.8 million during the nine months ended September 30, 2025, to $2.77 billion, primarily due to net income earned for the period and a decrease in unrealized losses on available for sale debt securities, partially offset by cash dividends paid to stockholders. For the three and nine months ended September 30, 2025, common stock repurchases totaled 1,335 shares at an average cost of $18.15 per share and 157,905 shares at an average cost of $18.07 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 September 30, 2025, approximately 814,634 shares remained eligible for repurchase under the current stock repurchase authorization. Book value per share and tangible book value per share(1) as of September 30, 2025 were $21.18 and $15.13, respectively, compared with $19.93 and $13.66, respectively, as of December 31, 2024.
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. 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 Thursday, October 30, 2025 at 2:00 p.m. Eastern Time to discuss the Company’s financial results for the quarter ended September 30, 2025. 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."
A supplemental 3rd Quarter results investor presentation is also available on our investor relations website under “Presentations.”
Forward Looking Statements
Certain statements contained herein are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-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, inflation and unemployment, competitive products and pricing, real estate values, fiscal and monetary policies of the U.S. Government, tariffs, changes in accounting policies and practices that may be adopted
9

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, and the impact of a recent 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.
Footnotes
(1) Annualized adjusted pre-tax, pre-provision return on average assets, annualized return on average tangible equity, tangible common equity capital ratio, 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.












10

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
Nine Months Ended
September 30,June 30,September 30,September 30,September 30,
20252025202420252024
Statement of Income
Net interest income$194,332 $187,094 $183,701 $563,154 $418,877 
Provision charge (benefit) for credit losses7,044 (2,888)9,299 4,794 78,684 
Non-interest income27,419 27,075 26,855 81,524 69,937 
Non-interest expense113,092 114,614 136,002 343,973 323,224 
Income before income tax expense101,615 102,443 65,255 295,911 86,906 
Net income71,720 71,981 46,405 207,729 67,001 
Diluted earnings per share$0.55 $0.55 $0.36 $1.59 $0.65 
Interest rate spread2.80 %2.74 %2.65 %2.76 %2.55 %
Net interest margin3.43 %3.36 %3.31 %3.38 %3.18 %
Profitability
Annualized return on average assets1.16 %1.19 %0.76 %1.14 %0.47 %
Annualized adjusted return on average assets (1)
1.16 %1.19 %0.95 %1.15 %0.66 %
Annualized return on average equity10.39 %10.76 %6.94 %10.33 %4.14 %
Annualized adjusted return on average equity (1)
10.39 %10.76 %8.62 %10.43 %5.83 %
Annualized return on average tangible equity (4)
16.01 %16.79 %12.06 %16.18 %7.13 %
Annualized adjusted return on average tangible equity (1)
16.01 %16.79 %14.53 %16.31 %9.56 %
Annualized adjusted non-interest expense to average assets (4)
1.83 %1.89 %1.98 %1.88 %1.99 %
Efficiency ratio (6)
51.01 %53.52 %57.20 %52.95 %58.27 %
Asset Quality
Non-accrual loans$100,409 $107,159 $89,934 $100,409 $89,934 
90+ and still accruing— — — — — 
Non-performing loans100,409 107,159 88,061 100,409 88,061 
Foreclosed assets2,015 963 9,801 2,015 9,801 
Non-performing assets102,424 108,122 97,862 102,424 97,862 
Non-performing loans to total loans held for investment0.52 %0.56 %0.47 %0.52 %0.47 %
Non-performing assets to total assets0.41 %0.44 %0.41 %0.41 %0.41 %
Allowance for loan losses$186,969 $187,871 $191,175 $186,969 $191,175 
Allowance for loan losses to total non-performing loans186.21 %175.32 %217.09 %186.21 %217.09 %
Allowance for loan losses to total loans held for investment0.97 %0.98 %1.02 %0.97 %1.02 %
Net loan charge-offs$5,401 $1,249 $6,756 $8,638 $9,067 
Annualized net loan charge-offs to average total loans 0.11 %0.03 %0.14 %0.06 %0.08 %
Average Balance Sheet Data
Assets$24,518,290 $24,349,808 $24,248,038 $24,312,490 $19,198,113 
Loans, net18,906,763 18,827,305 18,531,939 18,776,139 14,631,071 
Earning assets22,492,065 22,329,230 21,809,226 22,257,800 17,305,446 
Core deposits15,602,031 15,222,027 15,394,715 15,440,865 12,271,839 
Borrowings2,136,111 2,490,379 2,125,149 2,182,319 2,074,958 
Interest-bearing liabilities17,704,286 17,612,934 17,304,569 17,539,874 13,757,895 
Stockholders' equity2,738,414 2,684,342 2,660,470 2,687,384 2,163,856 
Average yield on interest-earning assets5.76 %5.68 %5.84 %5.69 %5.61 %
Average cost of interest-bearing liabilities2.96 %2.94 %3.19 %2.93 %3.06 %


11


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 Return on Average Assets, Equity and Tangible Equity
Three Months EndedNine Months Ended
September 30,June 30,September 30,September 30,September 30,
20252025202420252024
Net Income$71,720 $71,981 $46,405 $207,729 $67,001 
Write-down on ORE property— — — 2,690 — 
Merger-related transaction costs— — 15,567 — 36,684 
Less: income tax expense— — (4,306)(809)(9,274)
Annualized adjusted net income$71,720 71,981 57,666 $209,610 $94,411 
Plus: Amortization of Intangibles (net of tax)6,639 6,639 8,551 $19,922 $13,577 
Annualized adjusted net income for annualized adjusted return on average tangible equity$78,359 $78,620 $66,217 $229,531 $107,988 
Annualized Adjusted Return on Average Assets1.16 %1.19 %0.95 %1.15 %0.66 %
Annualized Adjusted Return on Average Equity10.39 %10.76 %8.62 %10.43 %5.83 %
Annualized Adjusted Return on Average Tangible Equity16.01 %16.79 %14.53 %16.31 %9.56 %
(2) Annualized adjusted pre-tax, pre-provision ("PTPP") returns on average assets, average equity and average tangible equity
Three Months EndedNine Months Ended
September 30,June 30,September 30,September 30,September 30,
20252025202420252024
Net income$71,720 $71,981 $46,405 $207,729 $67,001 
Adjustments to net income:
Provision (benefit) charge for credit losses7,044 (2,888)9,299 4,794 78,684 
Write-down on ORE property— — — 2,690 — 
Net loss on Lakeland bond sale— — — — 2,839 
Merger-related transaction costs— — 15,567 — 36,684 
Income tax expense29,895 30,462 18,850 88,182 19,905 
PTPP income$108,659 $99,555 $90,121 $303,395 $205,113 
Annualized PTPP income$431,093 $399,314 $358,525 $405,638 $273,983 
Average assets$24,518,290 $24,349,808 $24,248,038 $24,312,490 $19,198,113 
Average equity$2,738,414 $2,684,342 $2,660,470 $2,687,384 $2,163,856 
Average tangible equity$1,941,625 $1,877,923 $1,813,327 $1,881,067 $1,508,594 
Annualized PTPP return on average assets1.76 %1.64 %1.48 %1.67 %1.43 %
Annualized PTPP return on average equity15.74 %14.88 %13.48 %15.09 %12.66 %
Annualized PTPP return on average tangible equity22.20 %21.26 %19.77 %21.56 %18.16 %
12

(3) Tangible Common Equity Ratio, Book and Tangible Book Value per Share
September 30,June 30,December 31,
202520252024
Total assets$24,832,763 $24,547,286 $24,051,825 
Less: total intangible assets790,729 800,232 819,230 
Total tangible assets$24,042,034 $23,747,054 $23,232,595 
Total stockholders' equity$2,767,035 $2,707,555 $2,601,207 
Less: total intangible assets790,729 800,232 819,230 
Total tangible stockholders' equity$1,976,306 $1,907,323 $1,781,977 
Tangible common equity ratio8.22 %8.03 %7.67 %
Shares outstanding130,621,757 130,624,243 130,489,493 
Book value per share (total stockholders' equity/shares outstanding)$21.18 $20.73 $19.93 
Tangible book value per share (total tangible stockholders' equity/shares outstanding)$15.13 $14.60 $13.66 
(4) Annualized Return on Average Tangible Equity
Three Months EndedNine Months Ended
September 30,June 30,September 30,September 30,September 30,
20252025202420252024
Total average stockholders' equity$2,738,414 $2,684,342 $2,660,470 $2,687,384 $2,163,856 
Less: total average intangible assets796,789 806,419 847,143 806,317 655,262 
Total average tangible stockholders' equity$1,941,625 $1,877,923 $1,813,327 $1,881,067 $1,508,594 
Net income$71,720 $71,981 $46,405 $207,729 $67,001 
Plus: Amortization of Intangibles, net of tax6,639 6,639 8,551 19,922 13,577 
Total net income$78,359 $78,620 $54,956 $227,651 $80,578 
Annualized return on average tangible equity (net income/total average tangible stockholders' equity)16.01 %16.79 %12.06 %16.18 %7.13 %
(5) Annualized Adjusted Non-Interest Expense to Average Assets
Three Months EndedNine Months Ended
September 30,June 30,September 30,September 30,September 30,
20252025202420252024
Reported non-interest expense$113,092 $114,614 $136,002 $343,973 $323,224 
Adjustments to non-interest expense:
Write-down on ORE property— — — 2,690 — 
Merger-related transaction costs— — 15,567 — 36,684 
Adjusted non-interest expense$113,092 $114,614 $120,435 $341,283 $286,540 
Annualized adjusted non-interest expense$448,680 $459,715 $479,122 $456,294 $382,751 
Average assets$24,518,290 $24,349,808 $24,248,038 $24,312,490 $19,198,113 
Annualized adjusted non-interest expense/average assets1.83 %1.89 %1.98 %1.88 %1.99 %
(6) Efficiency Ratio Calculation
Three Months EndedNine Months Ended
September 30,June 30,September 30,September 30,September 30,
20252025202420252024
Net interest income$194,332 $187,094 $183,701 $563,154 $418,877 
Reported non-interest income27,419 27,075 26,855 81,524 69,937 
Adjustments to non-interest income:
Net (gain) loss on securities transactions(67)— 2 (153)2,972 
Adjusted non-interest income27,352 27,075 26,853 81,371 72,909 
Total income$221,684 $214,169 $210,554 $644,525 $491,786 
Adjusted non-interest expense $113,092 $114,614 $120,435 $341,283 $286,540 
Efficiency ratio (adjusted non-interest expense/income)51.01 %53.52 %57.20 %52.95 %58.27 %

13


PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Financial Condition
September 30, 2025 (Unaudited) and December 31, 2024
(Dollars in Thousands)
AssetsSeptember 30, 2025December 31, 2024
Cash and cash equivalents$301,614 $205,939 
Available for sale debt securities, at fair value3,141,320 2,768,915 
Held to maturity debt securities, (net of $19,000 allowance as of September 30, 2025 (unaudited) and $14,000 allowance as of December 31, 2024)
292,120 327,623 
Equity securities, at fair value19,682 19,110 
Federal Home Loan Bank stock119,551 112,767 
Loans held for sale14,329 162,453 
Loans held for investment19,286,067 18,659,370 
Less allowance for credit losses186,969 193,432 
Net loans19,113,427 18,628,391 
Foreclosed assets, net2,015 9,473 
Banking premises and equipment, net113,098 119,622 
Accrued interest receivable94,647 91,160 
Intangible assets790,729 819,230 
Bank-owned life insurance412,253 405,893 
Other assets432,307 543,702 
Total assets$24,832,763 $24,051,825 
Liabilities and Stockholders' Equity
Deposits:
Demand deposits$14,153,908 $13,775,991 
Savings deposits1,577,946 1,679,667 
Certificates of deposit of $250,000 or more886,137 789,342 
Other time deposits2,478,253 2,378,813 
Total deposits19,096,244 18,623,813 
Mortgage escrow deposits46,255 42,247 
Borrowed funds2,209,310 2,020,435 
Subordinated debentures405,340 401,608 
Other liabilities308,579 362,515 
Total liabilities22,065,728 21,450,618 
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 130,621,757 shares outstanding as of September 30, 2025 and 130,489,493 outstanding as of December 31, 20241,376 1,376 
Additional paid-in capital1,841,920 1,834,495 
Retained earnings1,102,269 989,111 
Accumulated other comprehensive loss (87,243)(135,355)
Treasury stock(91,287)(88,420)
Total stockholders' equity2,767,035 2,601,207 
Total liabilities and stockholders' equity$24,832,763 $24,051,825 
14

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Income
Three months ended September 30, 2025, June 30, 2025 and September 30, 2024, and nine months ended September 30, 2025 and 2024 (Unaudited)
(Dollars in Thousands, except per share data)
Three Months EndedNine Months Ended
September 30,June 30,September 30,September 30,September 30,
20252025202420252024
Interest and dividend income:
Real estate secured loans$197,252 $192,792 $197,857 $577,097 $461,632 
Commercial loans81,943 78,854 81,183 236,616 175,815 
Consumer loans10,847 10,464 12,947 31,470 25,820 
Available for sale debt securities, equity securities and Federal Home Loan Bank stock33,578 31,444 25,974 94,666 58,698 
Held to maturity debt securities1,897 1,966 2,136 5,859 6,761 
Deposits, federal funds sold and other short-term investments764 788 2,425 2,227 5,466 
Total interest income326,281 316,308 322,522 947,935 734,192 
Interest expense:
Deposits102,094 96,257 110,009 295,771 243,602 
Borrowed funds21,307 24,470 19,923 63,555 57,871 
Subordinated debt8,548 8,487 8,889 25,455 13,842 
Total interest expense131,949 129,214 138,821 384,781 315,315 
Net interest income194,332 187,094 183,701 563,154 418,877 
Provision charge (benefit) for credit losses7,044 (2,888)9,299 4,794 78,684 
Net interest income after provision for credit losses187,288 189,982 174,402 558,360 340,193 
Non-interest income:
Fees11,336 10,736 9,816 31,727 24,426 
Wealth management income7,349 6,948 7,620 21,625 22,878 
Insurance agency income3,852 4,942 3,631 14,445 12,912 
Bank-owned life insurance2,662 2,585 4,308 7,340 9,448 
Net gain (loss) on securities transactions67 — 2 153 (2,972)
Other income2,153 1,864 1,478 6,234 3,245 
Total non-interest income27,419 27,075 26,855 81,524 69,937 
Non-interest expense:
Compensation and employee benefits63,202 63,249 63,468 188,817 158,404 
Net occupancy expense12,773 13,011 12,790 39,711 32,452 
Data processing expense9,102 9,599 10,481 28,305 25,698 
FDIC Insurance3,418 3,341 4,180 10,144 9,553 
Amortization of intangibles9,497 9,497 12,231 28,496 19,420 
Advertising and promotion expense1,640 1,429 1,524 4,124 3,661 
Merger-related expenses— — 15,567 — 36,684 
Other operating expenses13,460 14,488 15,761 44,376 37,352 
Total non-interest expense113,092 114,614 136,002 343,973 323,224 
Net income before income tax expense101,615 102,443 65,255 295,911 86,906 
Income tax expense29,895 30,462 18,850 88,182 19,905 
Net income$71,720 $71,981 $46,405 $207,729 $67,001 
Basic earnings per share$0.55 $0.55 $0.36 $1.59 $0.65 
Average basic shares outstanding130,506,517130,484,287129,941,845130,439,534102,819,042
Diluted earnings per share$0.55 $0.55 $0.36 $1.59 $0.65 
Average diluted shares outstanding130,553,819130,500,143130,004,870130,479,443102,845,261
15

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Quarterly Average Balances
 (Dollars in Thousands) (Unaudited)
September 30, 2025June 30, 2025September 30, 2024
Average BalanceInterestAverage
Yield/Cost		Average BalanceInterestAverage
Yield/Cost		Average BalanceInterestAverage
Yield/Cost
Interest-Earning Assets:
Deposits$79,471 $764 3.82 %$75,714 $788 4.21 %$179,313 $2,425 5.38 %
Available for sale debt securities3,070,08030,9524.03 %2,958,32529,092 3.95 %2,644,26224,6083.71 %
Held to maturity debt securities, net (1)
299,5061,8972.53 %315,2041,966 2.49 %342,2172,1362.50 %
Equity securities, at fair value19,457 120 2.47 %19,235 214 4.44 %19,654 276 5.62 %
Total securities3,389,04332,9693.89 %3,292,76431,2723.81 %3,006,13327,0203.58 %
Federal Home Loan Bank stock116,7882,5068.58 %133,4472,1386.44 %91,8411,0904.75 %
Net loans: (2)
Total mortgage loans13,390,032197,2525.85 %13,398,650192,7925.77 %13,363,265197,8575.83 %
Total commercial loans4,908,13181,9436.63 %4,816,23778,8546.57 %4,546,08881,1837.05 %
Total consumer loans608,60010,8477.07 %612,41810,4646.85 %622,58612,9478.27 %
Total net loans18,906,763290,0426.09 %18,827,305282,1106.01 %18,531,939291,9876.21 %
Total interest-earning assets$22,492,065 $326,281 5.76 %$22,329,230 $316,308 5.68 %$21,809,226 $322,522 5.84 %
Non-Interest Earning Assets:
Cash and due from banks154,859150,464341,505
Other assets1,871,366 1,870,114 2,097,307
Total assets$24,518,290 $24,349,808 $24,248,038 
Interest-Bearing Liabilities:
Demand deposits$10,280,314 $70,584 2.72 %$9,874,149 $64,803 2.63 %$9,942,053 $74,864 3.00 %
Savings deposits1,596,0728960.22 %1,647,7469000.22 %1,711,5021,0060.23 %
Time deposits3,287,24130,6143.69 %3,197,37430,5553.83 %3,112,59834,1394.36 %
Total deposits15,163,627102,0942.67 %14,719,26996,2582.62 %14,766,153110,0092.96 %
Borrowed funds2,136,11121,3073.96 %2,490,37924,4703.94 %2,125,14919,9233.73 %
Subordinated debentures404,548 8,548 8.38 %403,286 8,487 8.44 %413,267 8,889 8.56 %
Total interest-bearing liabilities17,704,286131,9492.96 %17,612,934129,2152.94 %17,304,569138,8213.19 %
Non-Interest Bearing Liabilities:
Non-interest bearing deposits3,725,6453,700,1323,741,160
Other non-interest bearing liabilities349,945352,400541,839
Total non-interest bearing liabilities4,075,5904,052,5324,282,999
Total liabilities21,779,87621,665,46621,587,568
Stockholders' equity2,738,4142,684,3422,660,470
Total liabilities and stockholders' equity$24,518,290 $24,349,808 $24,248,038 
Net interest income$194,332 $187,093 $183,701 
Net interest rate spread2.80 %2.74 %2.65 %
Net interest-earning assets$4,787,779 $4,716,296 $4,504,657 
Net interest margin (3)
3.43 %3.36 %3.31 %
Ratio of interest-earning assets to total interest-bearing liabilities1.27x1.27x1.26x
(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.
16

The following table summarizes the quarterly net interest margin for the previous five quarters.
9/30/256/30/253/31/2512/31/249/30/24
3rd Qtr.2nd Qtr.1st Qtr.4th Qtr.3rd Qtr.
Interest-Earning Assets:
Securities3.89 %3.81 %3.73 %3.55 %3.58 %
Net loans6.09 %6.01 %5.95 %5.99 %6.21 %
Total interest-earning assets5.76 %5.68 %5.63 %5.66 %5.84 %
Interest-Bearing Liabilities:
Deposits2.67 %2.62 %2.64 %2.81 %2.96 %
Borrowings3.96 %3.94 %3.76 %3.64 %3.73 %
Total interest-bearing liabilities2.96 %2.94 %2.90 %3.03 %3.19 %
Interest rate spread2.80 %2.74 %2.73 %2.63 %2.65 %
Net interest margin3.43 %3.36 %3.34 %3.28 %3.31 %
Ratio of interest-earning assets to interest-bearing liabilities1.27x1.27x1.27x1.27x1.26x


















17

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Average Year to Date Balances
(Dollars in Thousands) (Unaudited)
September 30, 2025September 30, 2024
AverageAverageAverageAverage
BalanceInterestYield/CostBalanceInterestYield/Cost
Interest-Earning Assets:
Deposits$78,434 $2,227 4.21 %$39,280 $5,466 5.38 %
Available for sale debt securities2,952,923 87,530 3.95 %2,189,671 52,277 3.18 %
Held to maturity debt securities, net (1)
311,507 5,859 2.51 %350,529 6,761 2.57 %
Equity securities, at fair value19,294 469 3.24 %10,050 276 3.67 %
Total securities3,283,724 93,858 3.81 %2,550,250 59,314 3.10 %
Federal Home Loan Bank stock119,503 6,667 7.48 %84,845 6,145 9.66 %
Net loans: (2)
Total mortgage loans13,362,561 577,097 5.77 %10,682,974 461,632 5.70 %
Total commercial loans4,803,599 236,616 6.59 %3,487,600 175,815 6.69 %
Total consumer loans609,979 31,470 6.90 %460,497 25,820 7.49 %
Total net loans18,776,139 845,183 6.02 %14,631,071 663,267 5.99 %
Total interest-earning assets$22,257,800 $947,935 5.69 %$17,305,446 $734,192 5.61 %
Non-Interest Earning Assets:
Cash and due from banks146,568 229,336 
Other assets1,908,122 1,663,331 
Total assets$24,312,490 $19,198,113 
Interest-Bearing Liabilities:
Demand deposits$10,084,036 $200,819 2.66 %$7,931,251 $174,609 2.94 %
Savings deposits1,641,821 2,720 0.22 %1,444,135 2,476 0.23 %
Time deposits3,228,399 92,232 3.82 %2,091,806 66,517 4.25 %
Total deposits14,954,256 295,771 2.64 %11,467,192 243,602 2.84 %
Borrowed funds2,182,319 63,555 3.89 %2,074,958 57,871 3.73 %
Subordinated debentures403,299 25,455 8.44 %215,745 13,842 8.57 %
Total interest-bearing liabilities$17,539,874 $384,781 2.93 %$13,757,895 $315,315 3.06 %
Non-Interest Bearing Liabilities:
Non-interest bearing deposits3,715,008 2,896,453 
Other non-interest bearing liabilities370,224 379,909 
Total non-interest bearing liabilities4,085,232 3,276,362 
Total liabilities21,625,106 17,034,257 
Stockholders' equity2,687,384 2,163,856 
Total liabilities and stockholders' equity$24,312,490 $19,198,113 
Net interest income$563,154 $418,877 
Net interest rate spread2.76 %2.55 %
Net interest-earning assets$4,717,926 $3,547,551 
Net interest margin (3)
3.38 %3.18 %
Ratio of interest-earning assets to total interest-bearing liabilities1.27x1.26x
(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.
18

The following table summarizes the year-to-date net interest margin for the previous three years.
Nine Months Ended
September 30, 2025September 30, 2024September 30, 2023
Interest-Earning Assets:
Securities3.81 %3.10 %2.57 %
Net loans6.02 %5.99 %5.25 %
Total interest-earning assets5.69 %5.61 %4.76 %
Interest-Bearing Liabilities:
Deposits2.64 %2.84 %1.82 %
Borrowings3.89 %3.73 %3.29 %
Total interest-bearing liabilities2.93 %3.06 %2.07 %
Interest rate spread2.76 %2.55 %2.69 %
Net interest margin3.38 %3.18 %3.19 %
Ratio of interest-earning assets to interest-bearing liabilities1.27x1.26x1.32x




19