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Provident Financial Services, Inc. Announces Fourth Quarter and Full Year Earnings, and Annual Meeting Date
ISELIN, NJ, January 27, 2026 - Provident Financial Services, Inc. (NYSE:PFS) (the “Company”) reported net income of $83.4 million, or $0.64 per basic and diluted share for the three months ended December 31, 2025, compared to $71.7 million, or $0.55 per basic and diluted share, for the three months ended September 30, 2025 and $48.5 million, or $0.37 per basic and diluted share, for the three months ended December 31, 2024. For the year ended December 31, 2025, net income totaled $291.2 million, or $2.23 per basic and diluted share, compared to $115.5 million, or $1.05 per basic and diluted share, for the year ended December 31, 2024. Prior year earnings include six and a half months of combined operations with Lakeland Bancorp, Inc. (“Lakeland”), compared to a full year in 2025. Additionally, while there were no transaction costs related to our merger with Lakeland during 2025, for the three months and year ended December 31, 2024, these costs totaled $20.2 million and $117.0 million, respectively. The 2024 full year results included 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 Bank finished 2025 with a third consecutive quarter of record revenues, notable momentum across all our business lines and strong profitability. Organic growth remains our top priority, supported by a loan pipeline that has consistently been over $2.5 billion for the past four quarters, and several investments we have made to sustain growth in non-interest income. Our organization continues to focus on several strategic initiatives to help profitably grow our business, including growing our market share in middle market banking, insurance and wealth management. Looking ahead to 2026, we expect continued earnings per share growth and to compound tangible book value, while also making the necessary investments to sustain our momentum over the long-term."
Performance Highlights for the Fourth Quarter of 2025
•The Company's annualized returns on average assets, average equity and average tangible equity(1) were 1.34%, 11.78% and 17.58% for the quarter ended December 31, 2025, compared to 1.16%, 10.39% and 16.01% for the quarter ended September 30, 2025. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 13 of the earnings release.
•The Company's annualized adjusted pre-provision, net-revenue returns on average assets, average equity and average tangible equity(2) were 1.78%, 15.68% and 21.78% for the quarter ended December 31, 2025, compared to 1.76%, 15.74% and 22.20% for the quarter ended September 30, 2025. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 13 of the earnings release.
•The Company reported record revenue for a third consecutive quarter of $225.7 million for the three months ended December 31, 2025, comprised of record net interest income of $197.4 million and record non-interest income of $28.3 million, compared to revenue of $221.8 million for the prior quarter.
•Average interest-earning assets increased $306.7 million, or an annualized 5.41%, for the quarter ended December 31, 2025, versus the trailing quarter.
•The Company's total commercial loan portfolio, including mortgage warehouse lines, commercial mortgage, multi-family and construction loans, increased $225.3 million, or 5.35% annualized, to $16.93 billion as of December 31, 2025, from $16.70 billion as of September 30, 2025.
•The Company's total deposits increased $182.4 million, or 3.79% annualized, to $19.28 billion as of December 31, 2025, from $19.10 billion as of September 30, 2025, while total core deposits, which exclude certificates of deposit, increased $259.6 million, or 6.55% annualized, to $15.99 billion as of December 31, 2025, from $15.73 billion as of September 30, 2025.
•As of December 31, 2025, the Company's loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $2.74 billion, with a weighted average interest rate of 6.22%, compared to $2.87 billion, with a weighted average interest rate of 6.15%, as of September 30, 2025.
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•Net interest margin increased one basis point to 3.44% for the quarter ended December 31, 2025, compared to the trailing quarter, primarily attributable to the favorable repricing of deposits, partially offset by a reduction in net accretion of purchase accounting adjustments related to the Lakeland merger, combined with the repricing of adjustable rate loans. The core net interest margin, which excludes the impact of purchase accounting accretion and amortization, increased seven basis points from the trailing quarter to 3.01%. The average yield on total loans decreased 11 basis points to 5.98% for the quarter ended December 31, 2025, compared to the trailing quarter, while the average cost of deposits, including non-interest-bearing deposits, decreased four basis points to 2.10% for the quarter ended December 31, 2025.
•The Company recorded a $1.2 million provision benefit for credit losses, which included a $2.0 million provision charge for credit losses on loans that was more than offset by a $3.2 million provision benefit for credit losses on off-balance sheet credit exposures for the quarter ended December 31, 2025. The allowance for credit losses as a percentage of loans decreased to 0.95% as of December 31, 2025, from 0.97% as of September 30, 2025.
•Asset quality improved in the quarter, as non-performing loans to total loans as of December 31, 2025 decreased to 0.40% from 0.52% as of September 30, 2025, while non-performing assets to total assets as of December 31, 2025 decreased to 0.32% from 0.41% as of September 30, 2025. The $22.0 million, or 21.90% reduction in non-performing loans for the quarter was driven by the sale of non-accruing notes, with associated charge-offs of $1.3 million. Total net charge-offs of $4.2 million for the quarter represented an annualized 9 basis points of average loans.
•In the fourth quarter of 2025, Provident Bank entered into an agreement to purchase energy production tax credits of approximately $52.0 million, which resulted in an annual tax benefit of $3.4 million for 2025 that was recognized as a reduction in income tax expense.
•Tangible book value per share(3) increased 3.78% to $15.70 and our tangible common equity ratio(3) increased 26 basis points to 8.48% as of December 31, 2025. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 14 of the earnings release.
•As of December 31, 2025, exposure to non-depository financial institution lending was largely comprised of $357.1 million of mortgage warehouse loans.
Annual Meeting Date Set
The Annual Meeting of Stockholders will be held on May 21, 2026 at 10:00 a.m. Eastern Time as a virtual meeting. March 27, 2026 has been established as the record date for the determination of stockholders entitled to vote at the Annual Meeting.
Results of Operations
Three months ended December 31, 2025 compared to the three months ended September 30, 2025
For the three months ended December 31, 2025, net income was $83.4 million, or $0.64 per basic and diluted share, compared to net income of $71.7 million, or $0.55 per basic and diluted share, for the three months ended September 30, 2025.
Net Interest Income and Net Interest Margin
Net interest income increased $3.1 million to $197.4 million for the three months ended December 31, 2025, from $194.3 million for the trailing quarter. The increase in net interest income was primarily due to the favorable repricing of deposits and growth in average earning assets, partially offset by the repricing of adjustable rate loans.
The Company’s net interest margin increased one basis point to 3.44% for the quarter ended December 31, 2025, from 3.43% for the trailing quarter. The average yield on interest-earning assets for the quarter ended December 31, 2025 decreased 10 basis points to 5.66%, compared to the trailing quarter. The average cost of interest-bearing liabilities for the quarter ended December 31, 2025 decreased 13 basis points to 2.83%, compared to the trailing quarter. The average cost of interest-bearing deposits for the quarter ended December 31, 2025 decreased seven basis points to
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2.60%, compared to 2.67% for the trailing quarter. The average cost of total deposits, including non-interest-bearing deposits, was 2.10% for the quarter ended December 31, 2025, compared to 2.14% for the trailing quarter. The average cost of borrowed funds for the quarter ended December 31, 2025 was 3.94%, compared to 3.96% for the quarter ended September 30, 2025. The net accretion of purchase accounting adjustments contributed 43 basis points to the net interest margin for the quarter ended December 31, 2025, compared with 49 basis points in the trailing quarter. The reduction in purchase accounting accretion was largely due to the prepayment of certain loans that resulted in accelerated amortization of acquisition premiums and a decrease in accelerated accretion related to prepayments of loans with acquisition discounts. The core net interest margin, which excludes the impact of purchase accounting accretion and amortization, increased seven basis points from the trailing quarter to 3.01%.
Provision for Credit Losses
For the quarter ended December 31, 2025, the Company recorded a $1.2 million provision benefit for credit losses compared to a $7.0 million provision charge for the trailing quarter. The provision benefit consisted of a $2.0 million provision charge for credit losses related to loans and a $3.2 million provision benefit for credit losses related to off-balance sheet credit exposures, compared with provision charges for credit losses on loans and off-balance sheet credit exposures of $4.5 million and $2.5 million, respectively, for the quarter ended September 30, 2025. The provision for credit losses on loans in the quarter was primarily attributable to overall growth in the loan portfolio. For the three months ended December 31, 2025, net charge-offs totaled $4.2 million, or an annualized 9 basis points of average loans, compared to net charge-offs of $5.4 million, or an annualized 11 basis points of average loans for the trailing quarter.
Non-Interest Income and Expense
For the three months ended December 31, 2025, non-interest income totaled $28.3 million, an increase of $892,000, compared to the trailing quarter. Net gains on securities transactions increased $623,000 compared to the trailing quarter, to $690,000 for the three months ended December 31, 2025, primarily due to profits on calls of corporate securities. Wealth management income increased $278,000 compared to the trailing quarter, to $7.6 million for the three months ended December 31, 2025, mainly due to an increase in the average market value of assets under management during the period. Additionally, bank owned life insurance ("BOLI") income increased $128,000 compared to the trailing quarter, to $2.8 million for the three months ended December 31, 2025, primarily due to an increase in benefit claims. Fees and commissions decreased $236,000 to $11.1 million for the three months ended December 31, 2025, compared to the trailing quarter primarily due to a decrease in loan prepayment fee income.
Non-interest expense totaled $114.7 million for the three months ended December 31, 2025, an increase of $1.6 million, compared to $113.1 million for the trailing quarter. Other operating expenses increased $2.0 million to $15.4 million for the three months ended December 31, 2025, compared to the trailing quarter, driven by increases in legal, professional and other miscellaneous expenses. Compensation and benefits expense increased $1.1 million to $64.3 million for the three months ended December 31, 2025, compared to $63.2 million for the trailing quarter primarily attributable to an increase in the accrual for performance-based incentive compensation, partially offset by a decrease in employee medical benefits. Partially offsetting these increases, amortization of intangibles decreased $919,000 to $8.6 million for the three months ended December 31, 2025 primarily due to a scheduled reduction in the rate of core deposit intangible amortization related to Lakeland. FDIC insurance decreased $660,000 to $2.8 million for the three months ended December 31, 2025, compared to $3.4 million for the trailing quarter, primarily due to a decrease in the assessment rate.
The Company’s annualized adjusted non-interest expense as a percentage of average assets(5) was 1.84% for the quarter ended December 31, 2025, compared to 1.83% for the trailing quarter. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)(6) was 50.97% for the three months ended December 31, 2025, compared to 51.01% for the trailing quarter.
Income Tax Expense
For the three months ended December 31, 2025, the Company's income tax expense was $28.8 million with an effective tax rate of 25.7%, compared with income tax expense of $29.9 million with an effective tax rate of 29.4% for the trailing quarter. The decrease in tax expense and the effective tax rate for the three months ended
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December 31, 2025, compared with the trailing quarter was primarily related to tax credits recognized in the current quarter, which reduced the Company's taxable income by $3.4 million.
Three months ended December 31, 2025 compared to the three months ended December 31, 2024
For the three months ended December 31, 2025, net income was $83.4 million, or $0.64 per basic and diluted share, compared to net income of $48.5 million, or $0.37 per basic and diluted share, for the three months ended December 31, 2024. While there were no transaction costs related to our merger with Lakeland during 2025, these costs totaled $20.2 million for the three months ended December 31, 2024.
Net Interest Income and Net Interest Margin
Net interest income increased $15.7 million to $197.4 million for the three months ended December 31, 2025, from $181.7 million for same period in 2024. The increase in net interest income was primarily due to favorable repricing of deposits and growth in average earning assets.
The Company’s net interest margin increased 16 basis points to 3.44% for the quarter ended December 31, 2025, from 3.28% for the same period last year. The average yield on interest-earning assets for the quarter ended December 31, 2025 remained flat at 5.66% compared to the quarter ended December 31, 2024. The average cost of interest-bearing liabilities decreased 20 basis points for the quarter ended December 31, 2025 to 2.83%, compared to 3.03% for the fourth quarter of 2024. The average cost of interest-bearing deposits for the quarter ended December 31, 2025 was 2.60%, compared to 2.81% for the same period last year. The average cost of total deposits, including non-interest-bearing deposits, was 2.10% for the quarter ended December 31, 2025, compared with 2.25% for the quarter ended December 31, 2024. The average cost of borrowed funds for the quarter ended December 31, 2025 was 3.94%, compared to 3.64% for the same period last year. The core net interest margin, which excludes the impact of purchase accounting accretion and amortization, increased 16 basis points from the same period last year to 3.01%.
Provision for Credit Losses
For the quarter ended December 31, 2025, the Company recorded a $1.2 million provision benefit for credit losses compared to an $8.9 million provision charge for the same period last year. The provision benefit consisted of a $2.0 million provision charge for credit losses related to loans and a $3.2 million provision benefit for credit losses related to off-balance sheet credit exposures, compared with provision charges for credit losses on loans and off-balance sheet credit exposures of $7.8 million and $1.1 million, respectively for the quarter ended December 31, 2025. The provision for credit losses on loans in the 2025 fourth quarter was primarily attributable to overall growth in the loan portfolio. For the three months ended December 31, 2025, net charge-offs totaled $4.2 million, or an annualized 9 basis points of average loans, compared to net charge-offs of $5.5 million, or an annualized 12 basis points of average loans for the same period last year.
Non-Interest Income and Expense
Non-interest income totaled $28.3 million for the quarter ended December 31, 2025, an increase of $4.1 million, compared to the same period in 2024. Fee income increased $1.4 million to $11.1 million for the three months ended December 31, 2025, compared to the same period in 2024, primarily due to an increase in loan prepayment fee income. Other income increased $953,000 to $2.3 million for the three months ended December 31, 2025, compared to the quarter ended December 31, 2024, primarily due to an increase in net gains on the sale of SBA loans. Net gains on securities transactions increased $704,000 to $690,000 for the three months ended December 31, 2025, compared to the same period in 2024, primarily due to an increase in profits on calls of corporate securities. Insurance agency income increased $565,000 to $3.9 million, for the three months ended December 31, 2025, compared to the same period in 2024, largely due to strong retention revenue and new business activity, while BOLI income increased $529,000 to $2.8 million for the three months ended December 31, 2025, compared to the same period in 2024 largely due to an increase in benefit claims.
Non-interest expense totaled $114.7 million for the three months ended December 31, 2025, a decrease of $19.6 million, compared to $134.3 million for the three months ended December 31, 2024. Merger-related expense decreased $20.2 million for the three months ended December 31, 2025, compared to the same period in 2024. Amortization of intangibles decreased $933,000 to $8.6 million for the three months ended December 31, 2025, compared to $9.5 million for the same period in 2024, largely due to a scheduled reduction in the rate of core deposit
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intangible amortization related to Lakeland, as a result of lower projected attrition on core deposits. Additionally, data processing expense decreased $771,000 to $9.1 million for the three months ended December 31, 2025, compared to the same period in 2024, primarily due to core processing system expenses in the prior year related to the addition of Lakeland. Partially offsetting these decreases in non-interest expense, compensation and benefits expense increased $4.4 million to $64.3 million for three months ended December 31, 2025, compared to $59.9 million for the same period in 2024, primarily due to an increase in the accrual for performance-based incentive compensation.
The Company’s annualized adjusted non-interest expense as a percentage of average assets(5) was 1.84% for the quarter ended December 31, 2025, compared to 1.90% for the same period in 2024. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)(6) was 50.97% for the three months ended December 31, 2025 compared to 55.43% for the same respective period in 2024.
Income Tax Expense
For the three months ended December 31, 2025, the Company's income tax expense was $28.8 million with an effective tax rate of 25.7%, compared with $14.2 million with an effective tax rate of 22.6% for the three months ended December 31, 2024. The increase in tax expense for the three months ended December 31, 2025, compared with the three months ended December 31, 2024, was largely due to an increase in taxable income. The increase in the effective tax rate for the three months ended December 31, 2025, compared with the three months ended December 31, 2024 was primarily due to a prior year $4.2 million tax benefit related to the revaluation of deferred tax assets.
Year ended December 31, 2025 compared to the year ended December 31, 2024
For the year ended December 31, 2025, net income totaled $291.2 million, or $2.23 per basic and diluted share, compared to net income of $115.5 million, or $1.05 per basic and diluted share, for the year ended December 31, 2024. While there were no transaction costs related to our merger with Lakeland in 2025, those costs totaled $117.0 million, including an initial CECL provision for credit losses on loans recorded as part of the Lakeland merger, for the year ended December 31, 2024.
Net Interest Income and Net Interest Margin
Net interest income increased $160.0 million to $760.6 million for the year ended December 31, 2025, from $600.6 million for 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 year ended December 31, 2025, the net interest margin increased 13 basis points to 3.39%, compared to 3.26% for 2024. The weighted average yield on interest earning assets remained flat at 5.68% for the year ended December 31, 2025, compared to 2024, while the weighted average cost of interest-bearing liabilities decreased 14 basis points to 2.91% for the year ended December 31, 2025, compared to 3.05% last year. The average cost of interest-bearing deposits decreased 20 basis points to 2.63% for the year ended December 31, 2025, compared to 2.83% in the prior year. Average non-interest-bearing demand deposits increased $602.1 million to $3.72 billion for the year ended December 31, 2025, compared with $3.12 billion for 2024. The average cost of total deposits, including non-interest-bearing deposits, was 2.11% for the year ended December 31, 2025, compared with 2.26% for 2024. The average cost of borrowings for the year ended December 31, 2025 was 3.90%, compared to 3.71% in the prior year. The core net interest margin, which excludes the impact of purchase accounting accretion and amortization, increased 9 basis points from last year to 2.92%.
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Provision for Credit Losses
For the year ended December 31, 2025, the Company recorded a $3.6 million provision for credit losses, compared with a provision for credit losses of $87.6 million for 2024. The provision consisted of a $4.1 million provision charge for credit losses related to loans and a $545,000 provision benefit for credit losses related to off-balance sheet credit exposures, compared with provision charges for credit losses on loans and off-balance sheet credit exposures of $83.6 million and $4.0 million, respectively, for 2024. The provision for credit losses on loans for the year ended December 31, 2025 was primarily attributable to overall growth in the loan portfolio. 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. For the year ended December 31, 2025, net charge-offs totaled $12.8 million or an annualized seven basis points of average loans, compared with net charge-offs of $14.6 million, or an annualized nine basis points of average loans, for the year ended December 31, 2024.
Non-Interest Income and Expense
For the year ended December 31, 2025, non-interest income totaled $109.8 million, an increase of $15.7 million, compared to 2024. Fee income increased $8.7 million to $42.8 million for the year ended December 31, 2025, compared to 2024, primarily due to increases in deposit fee income, loan prepayment fee income and debit and credit card related fee income. Other income increased $3.9 million to $8.5 million for the year ended December 31, 2025, compared to $4.5 million for 2024, primarily due to an increase in gains on sales of SBA and mortgage loans and other miscellaneous income. Net gains on securities transactions increased $3.8 million for the year ended December 31, 2025, primarily due to a prior year $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 increased $2.1 million to $18.3 million for the year ended December 31, 2025, compared to $16.2 million for 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 $1.6 million to $10.1 million for the year ended December 31, 2025, compared to 2024, primarily due to a decrease in benefit claims, partially offset by an increase in income related to the addition of Lakeland's BOLI, while wealth management income decreased $1.3 million to $29.3 million for the year ended December 31, 2025, compared to 2024, mainly due to a decrease in the average market value of assets under management during the period.
Non-interest expense totaled $458.7 million for the year ended December 31, 2025, an increase of $1.1 million, compared to $457.5 million for 2024. Compensation and benefits expense increased $34.8 million to $253.1 million for the year ended December 31, 2025, compared to $218.3 million for 2024 primarily attributable to the addition of Lakeland personnel. Amortization of intangibles increased $8.1 million to $37.1 million for the year ended December 31, 2025, compared to $28.9 million for 2024, largely due to core deposit intangible amortization related to the addition of Lakeland. Net occupancy expense increased $7.8 million to $52.8 million for the year ended December 31, 2025, compared to 2024, primarily due to increases in depreciation and maintenance expense related to the addition of Lakeland. Other operating expenses increased $5.1 million to $59.8 million for the year ended December 31, 2025, compared to $54.7 million for 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 $1.8 million to $37.4 million for the year ended December 31, 2025, compared to $35.6 million for 2024, primarily due to the addition of Lakeland. Partially offsetting these increases to non-interest expense, merger-related expenses decreased $56.9 million for the year ended December 31, 2025.
Income Tax Expense
For the year ended December 31, 2025, the Company's income tax expense was $117.0 million with an effective tax rate of 28.7%, compared with $34.1 million with an effective tax rate of 22.8% for 2024. The increase in tax expense for the year ended December 31, 2025, compared with last year was primarily due to an increase in taxable income, partially resulting from the prior year initial CECL provision for credit losses on loans of $60.1 million recorded in accordance with GAAP requirements for accounting for business combinations and additional expenses from the Lakeland merger. Additionally, the increase in tax expense and the effective tax rate was due to a prior year $10.0 million tax benefit related to the revaluation of deferred tax assets.
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Asset Quality
The Company’s total non-performing loans at December 31, 2025 were $78.4 million, or 0.40% of total loans, compared to $100.4 million or 0.52% of total loans at September 30, 2025 and $72.1 million, or 0.39% of total loans at December 31, 2024. The $22.0 million decrease in non-performing loans at December 31, 2025, compared to the trailing quarter, consisted of a $14.1 million decrease in non-performing construction loans and a $12.2 million decrease in non-performing commercial mortgage loans, partially offset by a $1.8 million increase in non-performing multi-family loans, a $1.2 million increase in non-performing residential loans, a $736,000 increase in non-performing commercial loans and a $468,000 increase in non-performing consumer loans. The reduction in non-performing loans for the quarter was driven by the sale of non-accruing notes, with associated charge-offs of $1.3 million. As of December 31, 2025, impaired loans totaled $63.3 million with related specific reserves of $5.9 million, compared with impaired loans totaling $85.4 million with related specific reserves of $6.2 million as of September 30, 2025. As of December 31, 2024, impaired loans totaled $55.4 million with related specific reserves of $7.5 million.
At December 31, 2025, the Company’s allowance for credit losses related to the loan portfolio was 0.95% of total loans, compared to 0.97% and 1.04% at September 30, 2025 and December 31, 2024, respectively. The allowance for credit losses decreased $8.7 million to $184.8 million at December 31, 2025, from $193.4 million at December 31, 2024. The decrease in the allowance for credit losses on loans at December 31, 2025 compared to December 31, 2024 was primarily due to net charge-offs of $12.8 million, partially offset by a $4.1 million provision for credit losses on loans.
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The following table sets forth accruing past due loans and non-accrual loans on the dates indicated, as well as certain asset quality ratios.
 December 31, 2025September 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 loans8 $15,652 3 $956 7 $8,538 
Multi-family mortgage loans— — — — — — 
Construction loans— — — — — — 
Residential mortgage loans34 8,344 32 8,085 22 6,388 
Total mortgage loans42 23,996 35 9,041 29 14,926 
Commercial loans9 1,303 8 729 9 3,026 
Consumer loans49 2,209 40 2,739 47 3,152 
Total 30 to 59 days past due100 $27,508 83 $12,509 85 $21,104 
60 to 89 days past due:
Commercial mortgage loans— $— 4 $4,314 4 $3,954 
Multi-family mortgage loans1 932 1 879 — — 
Construction loans— — — — — — 
Residential mortgage loans16 4,177 22 6,180 17 5,049 
Total mortgage loans17 5,109 27 11,373 21 9,003 
Commercial loans3 633 4 1,390 3 1,117 
Consumer loans14 781 11 299 15 856 
Total 60 to 89 days past due34 6,523 42 13,062 39 10,976 
Total accruing past due loans134 $34,031 125 $25,571 124 $32,080 
Non-accrual:
Commercial mortgage loans11 $26,856 13 $39,036 17 $20,883 
Multi-family mortgage loans3 2,268 1 424 6 7,498 
Construction loans1 5,159 2 19,220 2 13,246 
Residential mortgage loans32 9,062 29 7,858 23 4,535 
Total mortgage loans47 43,345 45 66,538 48 46,162 
Commercial loans28 33,219 42 32,483 32 24,243 
Consumer loans27 1,856 19 1,388 23 1,656 
Total non-accrual loans102 $78,420 106 $100,409 103 $72,061 
Non-performing loans to total loans0.40 %0.52 %0.39 %
Allowance for loan losses to total non-performing loans235.61 %186.21 %268.43 %
Allowance for loan losses to total loans0.95 %0.97 %1.04 %
At December 31, 2025 and December 31, 2024, the Company held foreclosed assets of $2.0 million and $9.5 million, respectively. During the year ended December 31, 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 at December 31, 2025 consisted of commercial real estate. Total non-performing assets at December 31, 2025 decreased $1.1 million to $80.4 million, or 0.32% of total assets, from $81.5 million, or 0.34% of total assets at December 31, 2024.
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Balance Sheet Summary
Total assets at December 31, 2025 were $24.98 billion, a $928.9 million increase from December 31, 2024. The increase in total assets was primarily due to a $844.7 million increase in loans held for investment and a $354.0 million increase in total investments, partially offset by a $147.7 million decrease in loans held for sale, and decreases in intangibles and other assets.
The Company’s loans held for investment portfolio totaled $19.50 billion at December 31, 2025 and $18.66 billion at December 31, 2024. The loan portfolio consisted of the following:
December 31, 2025September 30, 2025December 31, 2024
(Dollars in thousands)
Mortgage loans:
Commercial$7,398,792 $7,318,725 $7,228,078 
Multi-family3,667,337 3,534,751 3,382,933 
Construction662,112 719,961 823,503 
Residential1,974,324 1,977,483 2,010,637 
Total mortgage loans13,702,565 13,550,920 13,445,151 
Commercial loans4,843,466 4,837,934 4,447,672 
Mortgage warehouse lines357,051 292,133 160,928 
Consumer loans612,431 614,983 613,819 
Total gross loans19,515,513 19,295,970 18,667,570 
Premiums on purchased loans1,524 1,362 1,338 
Net deferred fees and unearned discounts(12,976)(11,265)(9,538)
Total loans$19,504,061 $19,286,067 $18,659,370 
For the year ended December 31, 2025, the Company had net increases of $395.8 million in commercial loans, $284.4 million in multi-family loans and $170.7 million in commercial mortgage loans, partially offset by net decreases of $161.4 million in construction loans, $36.3 million in residential mortgage loans and $1.4 million in consumer loans. Commercial loans, consisting of commercial real estate, multi-family, commercial, mortgage warehouse and construction loans, represented 86.7% of the loan portfolio at December 31, 2025, compared to 85.9% at December 31, 2024.
For the year ended December 31, 2025, loan funding, including advances on lines of credit, totaled $10.11 billion, compared with $4.82 billion for the same period in 2024.
At December 31, 2025, the Company’s unfunded loan commitments totaled $3.71 billion, including commitments of $2.41 billion in commercial loans, $469.6 million in construction loans and $138.6 million in commercial mortgage loans. Unfunded loan commitments at September 30, 2025 and December 31, 2024 totaled $3.82 billion and $2.73 billion, respectively.
The loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $2.74 billion at December 31, 2025, compared to $2.89 billion at September 30, 2025 and $1.79 billion at December 31, 2024.
Total investment securities were $3.58 billion at December 31, 2025, a $354.0 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 $654.9 million during the year ended December 31, 2025, to $19.28 billion. Total savings and demand deposit accounts increased $535.7 million to $15.99 billion at December 31, 2025, while total time deposits increased $119.1 million to $3.29 billion at December 31, 2025. The increase in savings and demand deposits was largely attributable to a $372.0 million increase in interest-bearing demand deposits and a $328.7 million increase in money market deposits, partially offset by a $90.4 million decrease in savings deposits and a $74.5 million
9

decrease in non-interest-bearing demand deposits. The increase in time deposits consisted of a $253.6 million increase in brokered time deposits, partially offset by a $134.5 million decrease in retail time deposits.
Borrowed funds increased $91.5 million during the year ended December 31, 2025, to $2.11 billion. Borrowed funds represented 8.5% of total assets at December 31, 2025, a decrease from 13.9% at December 31, 2024.
Stockholders’ equity increased $232.0 million during the year ended December 31, 2025, to $2.83 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 year ended December 31, 2025, common stock repurchases totaled 158,293 shares at an average cost of $18.07 per share, all of which were made in connection with withholding to cover income taxes on the vesting of stock-based compensation. As of December 31, 2025, approximately 814,000 shares remained eligible for repurchase under the current stock repurchase authorization. Book value per share and tangible book value per share(6) at December 31, 2025 were $21.69 and $15.70, respectively, compared with $19.93 and $13.66, respectively, at 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 Wednesday, January 28, 2026 at 10:00 a.m. Eastern Time to discuss the Company’s financial results for the quarter and year ended December 31, 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 4th 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 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 and the availability of and costs associated with sources of liquidity.
The Company cautions readers not to place undue reliance on any such forward-looking statements which speak only as of the date they are made. The Company advises readers that the factors listed above could affect the Company's financial performance and could cause the Company's 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-provision, net-revenue 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.












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
Year ended
December 31,September 30,December 31,December 31,December 31,
20252025202420252024
Statement of Income
Net interest income$197,411 $194,332 $181,737 $760,565 $600,614 
Provision (benefit) charge for credit losses(1,213)7,044 8,880 3,581 87,564 
Non-interest income28,311 27,419 24,175 109,836 94,113 
Non-interest expense114,690 113,092 134,323 458,663 457,548 
Income before income tax expense112,245 101,615 62,709 408,157 149,615 
Net income83,431 71,720 48,524 291,160 115,525 
Diluted earnings per share$0.64 $0.55 $0.37 $2.23 $1.05 
Interest rate spread2.83 %2.80 %2.63 %2.77 %2.63 %
Net interest margin3.44 %3.43 %3.28 %3.39 %3.26 %
Profitability
Annualized return on average assets1.34 %1.16 %0.81 %1.19 %0.57 %
Annualized adjusted return on average assets (1)
1.34 %1.16 %1.05 %1.19 %0.78 %
Annualized return on average equity11.78 %10.39 %7.36 %10.71 %5.07 %
Annualized adjusted return on average equity (1)
11.78 %10.39 %9.53 %10.71 %6.95 %
Annualized return on average tangible equity (4)
17.58 %16.01 %12.21 %16.58 %8.58 %
Annualized adjusted return on average tangible equity (1)
17.58 %16.01 %15.39 %16.58 %11.29 %
Annualized adjusted non-interest expense to average assets (5)
1.84 %1.83 %1.90 %1.87 %1.97 %
Efficiency ratio (6)
50.97 %51.01 %55.43 %52.44 %57.67 %
Asset Quality
Non-accrual loans$78,420 $100,409 $72,061 $78,420 $72,061 
90+ and still accruing— — — — — 
Non-performing loans78,420 100,409 72,061 78,420 72,061 
Foreclosed assets2,015 2,015 9,473 2,015 9,473 
Non-performing assets80,435 102,424 81,534 80,435 81,534 
Non-performing loans to total loans0.40 %0.52 %0.39 %0.40 %0.39 %
Non-performing assets to total assets0.32 %0.41 %0.34 %0.32 %0.34 %
Allowance for loan losses$184,767 $186,969 $193,432 $184,767 $193,432 
Allowance for loan losses to total non-performing loans235.61 %186.21 %268.43 %235.61 %268.43 %
Allowance for loan losses to total loans0.95 %0.97 %1.04 %0.95 %1.04 %
Net loan charge-offs$4,152 5,401 $5,493 $12,790 $14,560 
Annualized net loan charge offs to average total loans 0.09 %0.11 %0.12 %0.07 %0.09 %
Average Balance Sheet Data
Assets$24,775,214 $24,518,290 $23,908,514 $24,429,121 $20,382,148 
Loans, net19,149,055 18,906,763 18,487,443 18,870,134 15,600,431 
Earning assets22,798,735 22,492,065 21,760,458 22,395,056 18,403,149 
Savings and demand deposits16,291,161 15,602,031 15,581,608 15,655,186 13,103,803 
Borrowings1,531,419 2,136,111 1,711,806 2,018,256 1,983,674 
Interest-bearing liabilities17,867,637 17,704,286 17,093,382 17,622,488 14,596,325 
Stockholders' equity2,810,166 2,738,414 2,624,019 2,718,331 2,279,525 
Average yield on interest-earning assets5.66 %5.76 %5.66 %5.68 %5.68 %
Average cost of interest-bearing liabilities2.83 %2.96 %3.03 %2.91 %3.05 %


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 Return on Average Assets, Equity and Tangible Equity
Three Months EndedYear Ended
December 31,September 30,December 31,December 31,December 31,
20252025202420252024
Net Income$83,431 $71,720 $48,524 $291,160 $115,525 
Merger-related transaction costs— — 20,184 — 56,867 
Less: income tax expense— — (5,819)— (14,010)
Annualized adjusted net income$83,431 $71,720 $62,889 $291,160 $158,382 
Less: Amortization of Intangibles (net of tax)$6,180 $6,639 $6,649 $26,712 $20,226 
Annualized adjusted net income for annualized adjusted return on average tangible equity$89,611 $78,359 $69,538 $317,872 $178,607 
Annualized Adjusted Return on Average Assets1.34 %1.16 %1.05 %1.19 %0.78 %
Annualized Adjusted Return on Average Equity11.78 %10.39 %9.53 %10.71 %6.95 %
Annualized Adjusted Return on Average Tangible Equity17.58 %16.01 %15.39 %16.58 %11.29 %
(2) Annualized adjusted pre-provision, net-revenue ("PPNR") returns on average assets, average equity and average tangible equity
Three Months EndedYear Ended
December 31,September 30,December 31,December 31,December 31,
20252025202420252024
Net income$83,431 $71,720 $48,524 $291,160 $115,525 
Adjustments to net income:
Provision (benefit) charge for credit losses(1,213)7,044 8,880 3,581 87,564 
Net loss on Lakeland bond sale— — — — 2,839 
Merger-related transaction costs— 20,184 — 56,867 
Writedown on ORE property— — — 2,690 — 
Income tax expense28,814 29,895 14,185 116,997 34,090 
Adjusted PPNR income$111,032 $108,659 $91,773 $414,428 $296,885 
Annualized Adjusted PPNR income$440,507 $431,093 $365,097 $414,428 $296,885 
Average assets$24,775,214 $24,518,290 $23,908,514 $24,429,121 $20,382,148 
Average equity$2,810,166 $2,738,414 $2,624,019 $2,718,331 $2,279,525 
Average tangible equity$2,022,451 $1,941,625 $1,797,994 $1,916,703 $1,581,339 
Annualized Adjusted PPNR return on average assets 1.78 %1.76 %1.53 %1.70 %1.46 %
Annualized PPNR return on average equity15.68 %15.74 %13.91 %15.25 %13.02 %
Annualized PPNR return on average tangible equity21.78 %22.20 %20.31 %21.62 %18.77 %
(3) Tangible Common Equity Ratio, Book and Tangible Book Value per ShareDecember 31,December 31,
20252024
Total assets$24,980,710 $24,051,825 
Less: total intangible assets782,152 819,230 
13

Total tangible assets$24,198,5580$23,232,595
Total stockholders' equity$2,833,212 $2,601,207 
Less: total intangible assets782,152 819,230 
Total tangible stockholders' equity$2,051,060 $1,781,977 
Tangible common equity ratio8.48 %7.67 %
Shares outstanding130,619,949 130,489,493 
Book value per share (total stockholders' equity/shares outstanding)$21.69 $19.93 
Tangible book value per share (total tangible stockholders' equity/shares outstanding)$15.70 $13.66 
(4) Annualized Return on Average Tangible Equity
Three Months EndedYear Ended
December 31,September 30,December 31,December 31,December 31,
20252025202420252024
Total average stockholders' equity$2,810,166 $2,738,414 $2,624,019 $2,718,331 $2,279,525 
Less: total average intangible assets787,715 796,789 826,025 801,628 698,186 
Total average tangible stockholders' equity$2,022,451 $1,941,625 $1,797,994 $1,916,703 $1,581,339 
Net income$83,431 $71,720 $48,524 $291,160 $115,525 
Less: Amortization of Intangibles, net of tax6,180 6,639 6,649 26,712 20,226 
Total net income$89,611 $78,359 $55,173 $317,872 $135,751 
Annualized return on average tangible equity (net income/total average tangible stockholders' equity)17.58 %16.01 %12.21 %16.58 %8.58 %
(5) Annualized Adjusted Non-Interest Expense to Average Assets
Three Months EndedYear Ended
December 31,September 30,December 31,December 31,December 31,
20252025202420252024
Reported non-interest expense$114,690 $113,092 $134,323 $458,663 $457,548 
Adjustments to non-interest expense:
Merger-related transaction costs— — 20,184 — 56,867 
Write-down of foreclosed property$— $— $— $2,690 $— 
Adjusted non-interest expense$114,690 $113,092 $114,139 $455,973 $400,681 
Annualized adjusted non-interest expense$455,020 $448,680 $454,075 $455,973 $400,681 
Average assets$24,775,214 $24,518,290 $23,908,514 $24,429,121 $20,382,148 
Annualized adjusted non-interest expense/average assets1.84 %1.83 %1.90 %1.87 %1.97 %
(6) Efficiency Ratio Calculation
Three Months EndedYear Ended
December 31,September 30,December 31,December 31,December 31,
20252025202420252024
Net interest income$197,411 $194,332 $181,737 $760,565 $600,614 
Non-interest income28,311 27,419 24,175 109,836 94,113 
Adjustments to non-interest income:
Net (gain) loss on securities transactions(690)(67)14 (843)2,986 
Adjusted non-interest income27,621 27,352 24,189 108,993 97,099 
Total income$225,032 $221,684 $205,912 $869,558 $694,727 
Adjusted non-interest expense $114,690 $113,092 $114,139 $455,973 $400,681 
Efficiency ratio (adjusted non-interest expense/income)50.97 %51.01 %55.43 %52.44 %57.67 %
14

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Financial Condition
December 31, 2025 (Unaudited) and December 31, 2024
(Dollars in Thousands)
AssetsDecember 31, 2025December 31, 2024
Cash and cash equivalents211,484 205,939 
Available for sale debt securities, at fair value3,164,756 2,768,915 
Held to maturity debt securities, (net of $16,000 allowance as of December 31, 2025 (unaudited) and $14,000 allowance as of December 31, 2024) 282,127 327,623 
Equity securities, at fair value19,875 19,110 
Federal Home Loan Bank stock115,687 112,767 
Loans held for sale14,710 162,453 
Loans held for investment19,504,061 18,659,370 
Less allowance for credit losses184,767 193,432 
Net loans19,334,004 18,628,391 
Foreclosed assets, net2,015 9,473 
Banking premises and equipment, net113,328 119,622 
Accrued interest receivable95,798 91,160 
Intangible assets782,152 819,230 
Bank-owned life insurance414,371 405,893 
Other assets445,113 543,702 
Total assets$24,980,710 $24,051,825 
Liabilities and Stockholders' Equity
Deposits:
Demand deposits$14,402,148 $13,775,991 
Savings deposits1,589,259 1,679,667 
Certificates of deposit of $250,000 or more929,989 789,342 
Other time deposits2,357,287 2,378,813 
Total deposits19,278,683 18,623,813 
Mortgage escrow deposits40,253 42,247 
Borrowed funds2,111,955 2,020,435 
Subordinated debentures406,582 401,608 
Other liabilities310,025 362,515 
Total liabilities22,147,498 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 130,619,949 shares outstanding as of December 31, 2025 and 130,489,493 outstanding as of December 31, 2024.1,376 1,376 
Additional paid-in capital1,844,949 1,834,495 
Retained earnings1,154,364 989,111 
Accumulated other comprehensive loss(76,183)(135,355)
Treasury stock(91,294)(88,420)
Total stockholders' equity2,833,212 2,601,207 
Total liabilities and stockholders' equity$24,980,710 $24,051,825 
15

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Income
Three months ended December 31, 2025, September 30, 2025 (Unaudited) and December 31, 2024,
and year ended December 31, 2025 (Unaudited) and 2024
(Dollars in Thousands, except per share data)
Three Months EndedYear Ended
December 31,September 30,December 31,December 31,December 31,
20252025202420252024
Interest and dividend income:
Real estate secured loans$196,082 $197,252 $194,236 $773,179 $655,868 
Commercial loans81,652 81,943 75,978 318,268 251,793 
Consumer loans10,504 10,847 10,815 41,974 36,635 
Available for sale debt securities, equity securities and Federal Home Loan Bank stock33,981 33,578 27,197 128,647 85,895 
Held to maturity debt securities1,835 1,897 2,125 7,694 8,885 
Deposits, federal funds sold and other short-term investments785 764 1,596 3,012 7,062 
Total interest income324,839 326,281 311,947 1,272,774 1,046,138 
Interest expense:
Deposits104,232 102,094 105,922 400,003 349,523 
Borrowed funds15,199 21,307 15,652 78,754 73,523 
Subordinated debt7,997 8,548 8,636 33,452 22,478 
Total interest expense127,428 131,949 130,210 512,209 445,524 
Net interest income197,411 194,332 181,737 760,565 600,614 
Provision (benefit) charge for credit losses(1,213)7,044 8,880 3,581 87,564 
Net interest income after provision for credit losses198,624 187,288 172,857 756,984 513,050 
Non-interest income:
Fees11,100 11,336 9,687 42,827 34,114 
Wealth management income7,627 7,349 7,655 29,252 30,533 
Insurance agency income3,854 3,852 3,289 18,299 16,201 
Bank-owned life insurance2,790 2,662 2,261 10,130 11,709 
Net gain (loss) on securities transactions690 67 (14)843 (2,986)
Other income2,250 2,153 1,297 8,485 4,542 
Total non-interest income28,311 27,419 24,175 109,836 94,113 
Non-interest expense:
Compensation and employee benefits64,316 63,202 59,937 253,133 218,341 
Net occupancy expense13,078 12,773 12,562 52,789 45,014 
Data processing expense9,110 9,102 9,881 37,415 35,579 
FDIC Insurance2,758 3,418 3,411 12,902 12,964 
Amortization of intangibles8,578 9,497 9,511 37,074 28,931 
Advertising and promotion expense1,406 1,640 1,485 5,530 5,146 
Merger-related expenses— — 20,184 — 56,867 
Other operating expenses15,444 13,460 17,352 59,820 54,706 
Total non-interest expense114,690 113,092 134,323 458,663 457,548 
Income before income tax expense112,245 101,615 62,709 408,157 149,615 
Income tax expense28,814 29,895 14,185 116,997 34,090 
Net income$83,431 $71,720 $48,524 $291,160 $115,525 
Basic earnings per share$0.64 $0.55 $0.37 $2.23 $1.05 
Average basic shares outstanding130,530,391130,506,517130,067,244130,462,418109,668,911
Diluted earnings per share$0.64 $0.55 $0.37 $2.23 $1.05 
Average diluted shares outstanding130,589,271130,553,819130,163,872130,507,070109,712,732
16

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Quarterly Average Balances
 (Dollars in Thousands) (Unaudited)
December 31, 2025September 30, 2025December 31, 2024
Average BalanceInterestAverage
Yield/Cost		Average BalanceInterestAverage
Yield/Cost		Average BalanceInterestAverage
Yield/Cost
Interest-Earning Assets:
Deposits$90,490 $785 3.44 %$79,471 $764 3.82 %$117,998 $1,596 5.38 %
Available for sale debt securities3,161,75331,6224.00 %3,070,08030,952 4.03 %2,720,06524,8273.69 %
Held to maturity debt securities, net (1)
287,6351,8352.55 %299,5061,897 2.53 %328,1472,1252.59 %
Equity securities, at fair value19,781 143 2.90 %19,457 120 2.47 %19,920 236 4.71 %
Total securities3,469,16933,6003.87 %3,389,04332,969 3.89 %3,068,13227,1883.58 %
Federal Home Loan Bank stock90,0212,2169.76 %116,7882,5068.58 %86,8852,1349.82 %
Net loans: (2)
Total mortgage loans13,501,084196,0825.77 %13,390,032197,2525.85 %13,287,942194,2365.75 %
Total commercial loans5,036,65781,6526.43 %4,908,13181,9436.63 %4,587,04875,9786.54 %
Total consumer loans611,31410,5046.82 %608,60010,8477.07 %612,45310,8157.02 %
Total net loans19,149,055288,2385.98 %18,906,763290,0426.09 %18,487,443281,0295.99 %
Total interest-earning assets$22,798,735 $324,839 5.66 %$22,492,065 $326,281 5.76 %$21,760,458 $311,947 5.66 %
Non-Interest Earning Assets:
Cash and due from banks152,621154,859159,151
Other assets1,823,858 1,871,366 1,988,905
Total assets$24,775,214 $24,518,290 $23,908,514 
Interest-Bearing Liabilities:
Demand deposits$10,960,066 $72,283 2.62 %$10,280,314 $70,584 2.72 %$10,115,827 $71,265 2.80 %
Savings deposits1,585,8378890.22 %1,596,0728960.22 %1,677,7259680.23 %
Time deposits3,384,53831,0603.64 %3,287,24130,6143.69 %3,187,17233,6894.21 %
Total Deposits15,930,441104,2322.60 %15,163,627102,0942.67 %14,980,724105,9222.81 %
Borrowed funds1,531,41915,1993.94 %2,136,11121,3073.96 %1,711,80615,6523.64 %
Subordinated debentures405,777 7,997 7.82 %404,548 8,548 8.38 %400,852 8,636 8.57 %
Total interest-bearing liabilities17,867,637127,4282.83 %17,704,286131,9492.96 %17,093,382130,2103.03 %
Non-Interest Bearing Liabilities:
Non-interest bearing deposits3,745,2583,725,6453,788,056
Other non-interest bearing liabilities352,153349,945403,057
Total non-interest bearing liabilities4,097,4114,075,5904,191,113
Total liabilities21,965,04821,779,87621,284,495
Stockholders' equity2,810,1662,738,4142,624,019
Total liabilities and stockholders' equity$24,775,214 $24,518,290 $23,908,514 
Net interest income$197,411 $194,332 $181,737 
Net interest rate spread2.83 %2.80 %2.63 %
Net interest-earning assets$4,931,098 $4,787,779 $4,667,076 
Net interest margin (3)
3.44 %3.43 %3.28 %
Ratio of interest-earning assets to total interest-bearing liabilities1.28x1.27x1.27x
(1)Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses.
(2)Average outstanding balances are net of the allowance for loan losses, deferred loan fees and expenses, loan premiums and discounts and include non-accrual loans.
(3)Annualized net interest income divided by average interest-earning assets.
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The following table summarizes the quarterly net interest margin for the previous five quarters.
12/31/259/30/256/30/253/31/2512/31/24
4th Qtr.3rd Qtr.2nd Qtr.1st Qtr.4th Qtr.
Interest-Earning Assets:
Securities3.99 %3.89 %3.81 %3.73 %3.55 %
Net loans5.98 %6.09 %6.01 %5.95 %5.99 %
Total interest-earning assets5.66 %5.76 %5.68 %5.63 %5.66 %
Interest-Bearing Liabilities:
Total deposits2.60 %2.67 %2.62 %2.64 %2.81 %
Total borrowings3.94 %3.96 %3.94 %3.76 %3.64 %
Total interest-bearing liabilities2.83 %2.96 %2.94 %2.90 %3.03 %
Interest rate spread2.83 %2.80 %2.74 %2.73 %2.63 %
Net interest margin3.44 %3.43 %3.36 %3.34 %3.28 %
Ratio of interest-earning assets to interest-bearing liabilities1.28x1.27x1.27x1.27x1.27x


















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PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Average Year to Date Balances
(Dollars in Thousands) (Unaudited)
December 31, 2025December 31, 2024
AverageAverageAverageAverage
BalanceInterestYield/CostBalanceInterestYield/Cost
Interest-Earning Assets:
Deposits$82,383 $3,012 3.66 %$36,932 $7,062 5.23 %
Available for sale debt securities3,005,560 119,152 3.96 %2,323,158 77,105 3.32 %
Held to maturity debt securities, net (1)
305,490 7,694 2.52 %344,903 8,885 2.58 %
Equity securities, at fair value19,417 612 3.16 %12,367 512 4.14 %
Total securities3,330,467 127,458 3.82 %2,680,428 86,502 3.23 %
Federal Home Loan Bank stock112,072 8,883 7.93 %85,358 8,278 9.70 %
Net loans: (2)
Total mortgage loans13,457,994 773,179 5.75 %11,333,540 655,868 5.79 %
Total commercial loans4,801,729 318,268 6.63 %3,768,388 251,793 6.68 %
Total consumer loans610,411 41,974 6.88 %498,503 36,635 7.35 %
Total net loans18,870,134 1,133,421 6.01 %15,600,431 944,296 6.05 %
Total interest-earning assets$22,395,056 $1,272,774 5.68 %$18,403,149 $1,045,626 5.68 %
Non-Interest Earning Assets:
Cash and due from banks147,184 233,829 
Other assets1,886,881 1,745,170 
Total assets$24,429,121 $20,382,148 
Interest-Bearing Liabilities:
Demand deposits$10,304,843 $273,101 2.65 %$8,480,380 $245,874 2.90 %
Savings deposits1,627,710 3,609 0.22 %1,502,852 3,443 0.23 %
Time deposits3,267,755 123,293 3.77 %2,367,144 100,206 4.23 %
Total deposits15,200,308 400,003 2.63 %12,350,376 349,523 2.83 %
Borrowed funds2,018,256 78,754 3.90 %1,983,674 73,523 3.71 %
Subordinated debentures403,924 33,452 8.28 %262,275 22,478 8.57 %
Total interest-bearing liabilities$17,622,488 $512,209 2.91 %$14,596,325 $445,524 3.05 %
Non-Interest Bearing Liabilities:
Non-interest bearing deposits3,722,633 3,120,571 
Other non-interest bearing liabilities365,669 385,727 
Total non-interest bearing liabilities4,088,302 3,506,298 
Total liabilities21,710,790 18,102,623 
Stockholders' equity2,718,331 2,279,525 
Total liabilities and stockholders' equity$24,429,121 $20,382,148 
Net interest income$760,565 $600,102 
Net interest rate spread2.77 %2.63 %
Net interest-earning assets$4,772,568 $3,806,824 
Net interest margin (3)
3.39 %3.26 %
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.
19

The following table summarizes the year-to-date net interest margin for the previous three years.
Year Ended
December 31, 2025December 31, 2024December 31, 2023
Interest-Earning Assets:
Securities3.93 %3.43 %2.62 %
Net loans6.01 %6.05 %5.37 %
Total interest-earning assets5.68 %5.68 %4.87 %
Interest-Bearing Liabilities:
Total deposits2.63 %2.83 %1.99 %
Total borrowings3.90 %3.71 %3.41 %
Total interest-bearing liabilities2.91 %3.05 %2.24 %
Interest rate spread2.77 %2.63 %2.63 %
Net interest margin3.39 %3.26 %3.16 %
Ratio of interest-earning assets to interest-bearing liabilities1.27x1.26x1.31x




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