Provident Financial Services, Inc. Reports Third Quarter Earnings

ISELIN, NJ, October 28, 2026 - Provident Financial Services, Inc. (NYSE: PFS) (the “Company”) reported net income of $69.2 million, or $0.53 per basic and diluted share for the three months ended September 30, 2026, compared to $78.1 million, or $0.60 per basic and diluted share, for the three months ended June 30, 2026 and $71.7 million, or $0.55 per basic and diluted share, for the three months ended September 30, 2025. For the nine months ended September 30, 2026, net income totaled $226.7 million, or $1.74 per basic and diluted share, compared to $207.7 million, or $1.59 per basic and diluted share, for the nine months ended September 30, 2025. Results for the quarter were impacted by a $17.5 million one-time loss on extinguishment of debt due to the accelerated amortization of purchase accounting adjustments, core conversion related costs of $3.7 million and $465,000 of branch restructuring expenses. Excluding these expenses, core net income (1) for the three and nine months ended September 30, 2026, totaled $84.3 million, or $0.65 per basic and diluted share, and $243.5 million, or $1.87 per basic and diluted share, respectively.

Core pre-provision, net revenue ("PPNR") (2) for the three months ended September 30, 2026 was $119.5 million, or $0.92 per basic and diluted share, for the three months ended September 30, 2026, compared to $108.7 million, or $0.83 per basic and diluted share, for the three months ended September 30, 2025.

Anthony J. Labozzetta, President and Chief Executive Officer commented, “We continued our strong performance, delivering another quarter of solid financial results including record revenues. Building momentum in both our spread and fee-based businesses drove 10% year-over-year growth in our pre-provision net revenue, while core deposits grew nearly 6% annualized. During the quarter, we successfully completed our previously-announced core conversion, while also maintaining an adjusted efficiency ratio below 50%. Our robust loan pipeline and strong asset quality leave me optimistic that we will keep driving profitable organic growth going forward."
Key Points for the Third Quarter
•Expanding Core Profitability with Record Revenue
◦The Company's annualized returns on average assets, average equity and average tangible equity were 1.07%, 9.39% and 13.80% for the quarter ended September 30, 2026.
◦Annualized core return on average assets ("ROAA") (3) and net interest margin improved to 1.30% and 3.50%, respectively, from 1.16% and 3.43% in the prior year quarter. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 19 of the earnings release.
◦Core net interest margin, which excludes the impact of purchase accounting accretion and amortization and interest recovery on resolved non-performing loans, increased 7 basis points from the trailing quarter to 3.16% and 22 basis points from the prior year quarter.
◦Core PPNR (2) grew $10.8 million from the prior year quarter, resulting in a 9 basis point expansion of PPNR ROAA to 1.85%. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 18 of the earnings release.
◦Record net-interest income increased $13.7 million to $208.0 million when compared to the prior year quarter, driven primarily by growth in our earning assets and an expanded net interest margin.
•Strong Deposit Growth and Steady Capital Strengthening the Balance Sheet
◦The Company's total deposits increased $261.7 million or 5.31% annualized quarter over quarter, to $19.81 billion as of September 30, 2026, while total core deposits, which exclude certificates of deposit and wholesale deposits, increased $233.7 million, or 5.76% annualized, to $15.42 billion as of September 30, 2026.
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◦The Company's loan-to-deposit ratio decreased slightly to 101.8% as of September 30, 2026, compared to 102.6% as of June 30, 2026. The primary reason for the decrease in the loan-to-deposit ratio was due to an increase in non-maturity core business deposits.
◦Compared to the prior quarter, tangible book value ("TBV") per share (4) declined slightly to $16.16, while the tangible common equity ("TCE") ratio (4) declined 20 basis points to 8.40%, both of which were impacted by an $83.0 million reduction in Accumulated Other Comprehensive Income ("AOCI").
◦Common Equity Tier One and Total Risk Based Capital ratios for Provident Bank were above well-capitalized at 12.5% and 13.4% as of September 30, 2026, respectively.
◦The Company's adjusted CRE concentration ratio, excluding purchase accounting adjustments as of September 30, 2026, was 399.4%.
•Strong Loan Growth Trends with Low Net Charge-Offs
◦Total commercial loans, including mortgage warehouse lines, commercial mortgage, multi-family and construction loans, increased 3.4% annualized for the quarter.
◦Our pipeline totaled $3.03 billion as of September 30, 2026, with a weighted average interest rate approaching 6.50%. Both the CRE and C&I pipelines exceeded $1.0 billion for the third consecutive quarter, reflecting the investments we have made in our commercial banking group to generate sustainable, diversified loan growth.
◦Net charge-offs of $2.4 million and $7.4 million for both the quarter and nine months ended September 30, 2026, represent an annualized 5 basis points of average loans for both periods.
Third Quarter 2026 Financial Highlights and Key Performance Indicators (KPIs):
For the Quarter Ended
September 30,June 30,March 31,December 31,September 30,
20262026202620252025
Annualized return on average assets1.07 %1.24 %1.29 %1.34 %1.16 %
Annualized core return on average assets (3)
1.30 %1.27 %1.29 %1.34 %1.16 %
Annualized return on average equity9.39 %10.82 %11.21 %11.78 %10.39 %
Annualized core return on average equity (3)
11.44 %11.05 %11.21 %11.78 %10.39 %
Annualized return on average tangible equity (5)
13.80 %15.87 %16.54 %17.54 %16.01 %
Annualized core return on average tangible equity (3)
16.57 %16.18 %16.54 %17.54 %16.01 %
Annualized core non-interest expense to average assets (6)
1.84 %1.85 %1.90 %1.84 %1.83 %
Core efficiency ratio (7)
49.93 %49.75 %52.02 %50.97 %51.01 %
Non-performing loans to total loans 0.69 %0.68 %0.73 %0.40 %0.52 %
Non-performing assets to total assets0.55 %0.54 %0.58 %0.32 %0.41 %
Allowance for loan losses to total non-performing loans135.20 %134.87 %123.84 %235.61 %186.21 %
Allowance for loan losses to total loans 0.94 %0.92 %0.90 %0.95 %0.97 %
Annualized net loan charge-offs to average total loans 0.05 %0.04 %0.06 %0.09 %0.11 %
Average yield on interest-earning assets5.68 %5.61 %5.53 %5.66 %5.76 %
Average cost of interest-bearing liabilities2.79 %2.71 %2.71 %2.83 %2.96 %
Net interest margin3.50%3.48%3.40%3.44%3.43%
Annualized core PPNR return on average assets (2)
1.85 %1.87 %1.75 %1.78 %1.76 %
Annualized core PPNR return on average equity (2)
16.22 %16.30 %15.25 %15.68 %15.74 %
Annualized core PPNR return on average tangible equity (2)
23.51 %23.82 %22.59 %23.46 %24.14 %


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Balance Sheet Summary
Assets:
◦Total assets as of September 30, 2026 were $25.85 billion, compared to $24.98 billion as of December 31, 2025.
▪Total investment securities were $3.56 billion as of September 30, 2026, compared to $3.47 billion as of December 31, 2025. The increase in investment securities was primarily due to purchases of mortgage-backed securities, partially offset by an increase in unrealized losses on available for sale debt securities.
▪Loans held for investment totaled $20.17 billion as of September 30, 2026, and $19.50 billion as of December 31, 2025, with net increases of $394.0 million of commercial loans, $206.0 million of commercial mortgage loans, $174.4 million of multi-family loans and $32.7 million of construction loans, partially offset by net decreases of $74.0 million of mortgage warehouse lines, $62.9 million of residential mortgage loans and $1.5 million of consumer loans.
◦Total commercial loans, including mortgage warehouse lines, commercial mortgage, multi-family and construction loans, represented 87.5% of the loan portfolio as of September 30, 2026, compared to 86.7% as of December 31, 2025.
◦Loan funding, including advances on lines of credit, totaled $7.84 billion as of September 30, 2026, compared with $7.00 billion for the same period in 2025.
◦The Company’s unfunded loan commitments totaled $3.95 billion, including commitments of $2.24 billion in commercial loans, $677.8 million in construction loans and $335.1 million in commercial mortgage loans. Unfunded loan commitments as of December 31, 2025 and September 30, 2025 were $3.71 billion and $3.82 billion, respectively.
September 30, 2026June 30, 2026December 31, 2025
(Dollars in thousands)
Mortgage loans:
Commercial$7,604,830 $7,502,579 $7,398,792 
Multi-family3,841,754 3,806,823 3,667,337 
Construction694,807 638,933 662,112 
Residential1,911,472 1,938,704 1,974,324 
Total mortgage loans14,052,863 13,887,039 13,702,565 
Commercial loans5,237,467 5,251,096 4,843,466 
Mortgage warehouse lines283,093 313,934 357,051 
Consumer loans610,970 607,373 612,431 
Total gross loans20,184,393 20,059,442 19,515,513 
Premiums on purchased loans1,676 1,663 1,524 
Net deferred fees and unearned discounts(15,999)(15,353)(12,976)
Total loans$20,170,070 $20,045,752 $19,504,061 




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Liabilities and Capital:
◦Total deposits were $19.81 billion as of September 30, 2026, compared to $19.28 billion as of December 31, 2025. Total savings and demand deposit accounts increased $590.5 million to $16.58 billion as of September 30, 2026, while total time deposits decreased $62.4 million to $3.22 billion as of September 30, 2026. The increase in savings and demand deposits was largely attributable to a $408.5 million increase in money market deposits, a $176.1 million increase in interest-bearing demand deposits and a $143.5 million increase in non-interest bearing demand deposits, partially offset by a $137.6 million decrease in savings deposits. Within interest-bearing demand deposits, municipal deposits decreased $527.3 million, primarily due to seasonal outflows. To assist in funding the aforementioned seasonal outflows, brokered demand deposits increased by $432.5 million.
September 30, 2026June 30, 2026December 31, 2025
(Dollars in thousands)
Non-interest bearing$3,857,790 3,808,318 3,714,253 
Savings1,451,633 1,582,750 1,589,259 
Money market4,101,755 4,044,648 3,693,285 
Negotiable Order of Withdrawal ("NOW")7,170,752 6,665,950 6,994,610 
Certificates of deposit
3,224,905 3,443,503 3,287,276 
Total deposits$19,806,835 19,545,169 19,278,683 
◦Borrowed funds totaled $2.39 billion as of September 30, 2026, compared to $2.11 billion as of December 31, 2025. The increase in borrowed funds was largely used to fund asset growth and replace seasonal outflows in municipal deposits. Borrowed funds represented 9.2% of total assets as of September 30, 2026, an increase from 8.5% as of December 31, 2025.
◦Stockholders’ equity totaled $2.86 billion compared to $2.83 billion as of December 31, 2025, primarily due to net income earned for the period, partially offset by cash dividends paid to stockholders and an increase in unrealized losses on available for sale debt securities.
▪For the three months ended September 30, 2026, common stock repurchases totaled 1,464 shares at an average cost of $24.44 per share, all of which were made in connection with withholding to cover income taxes on the vesting of stock-based compensation. For the nine months ended September 30, 2026, common stock repurchases totaled 616,186 shares at an average cost of $21.10 per share. As of September 30, 2026, approximately 2,198,007 shares remained eligible for repurchase under the current stock repurchase authorization.
▪Book value per share and TBV per share(4) as of September 30, 2026 were $21.96 and $16.16, respectively, compared with $21.69 and $15.70, respectively, as of December 31, 2025.
Asset Quality:
◦The Company’s total non-performing loans as of September 30, 2026 were $140.1 million, or 0.69% of total loans held for investment, compared to $136.9 million, or 0.68% of total loans as of June 30, 2026 and $78.4 million, or 0.40% of total loans as of December 31, 2025. The allowance for credit losses on loans represented 135.20% of non-performing loans, compared to 123.84% at December 31, 2025, and 186.21% at September 30, 2025.
◦As of September 30, 2026, impaired loans totaled $126.2 million with related specific reserves of $6.6 million, compared with impaired loans totaling $121.2 million with related specific reserves of $3.8 million as of June 30, 2026. As of December 31, 2025, impaired loans totaled $63.3 million with related specific reserves of $5.9 million.
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◦As of September 30, 2026, the Company’s allowance for credit losses related to the loan portfolio was 0.94% of total loans, compared to 0.92% and 0.95% as of June 30, 2026 and December 31, 2025, respectively. The allowance for credit losses increased $4.7 million to $189.5 million as of September 30, 2026, from $184.8 million as of December 31, 2025. The increase in the allowance for credit losses on loans as of September 30, 2026 compared to December 31, 2025 was due to a $12.1 million provision for credit losses on loans, partially offset by net charge-offs of $7.4 million.
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, 2026June 30, 2026December 31, 2025
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 loans4 $1,561 3 $2,301 8 $15,652 
Multi-family mortgage loans— — 1 1,570 — — 
Construction loans— — — — — — 
Residential mortgage loans39 9,926 27 6,393 34 8,344 
Total mortgage loans43 11,487 31 10,264 42 23,996 
Commercial loans2 187 5 1,474 9 1,303 
Consumer loans52 3,559 31 1,401 49 2,209 
Total 30 to 59 days past due97 $15,233 67 $13,139 100 $27,508 
60 to 89 days past due:
Commercial mortgage loans1 $190 — $— — $— 
Multi-family mortgage loans— — — — 1 932 
Construction loans— — — — — — 
Residential mortgage loans20 5,731 20 5,929 16 4,177 
Total mortgage loans21 5,921 20 5,929 17 5,109 
Commercial loans4 477 4 828 3 633 
Consumer loans16 792 13 1,577 14 781 
Total 60 to 89 days past due41 7,190 37 8,334 34 6,523 
Total accruing past due loans138 $22,423 104 $21,473 134 $34,031 
Non-accrual:
Commercial mortgage loans6 $21,034 8 $21,338 11 $26,856 
Multi-family mortgage loans2 1,831 1 266 3 2,268 
Construction loans1 1,781 1 2,854 1 5,159 
Residential mortgage loans21 5,947 32 7,834 32 9,062 
Total mortgage loans30 30,593 42 32,292 47 43,345 
Commercial loans77 107,691 71 103,383 28 33,219 
Consumer loans22 1,858 17 1,210 27 1,856 
Total non-accrual loans129 $140,142 130 $136,885 102 $78,420 
Non-performing loans to total loans held for investment0.69 %0.68 %0.40 %
Allowance for loan losses to total non-performing loans135.20 %134.87 %235.61 %
Allowance for loan losses to total loans 0.94 %0.92 %0.95 %
As of September 30, 2026 and December 31, 2025, the Company held foreclosed assets of $1.0 million and $2.0 million, respectively. Foreclosed assets as of September 30, 2026 was comprised of one commercial real estate
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property. Total non-performing assets at September 30, 2026 increased $60.7 million to $141.1 million, or 0.55% of total assets, from $80.4 million, or 0.32% of total assets at December 31, 2025.
Results of Operations
Third quarter of 2026 compared to the second quarter of 2026:
Net interest income
◦Net interest income was $208.0 million, compared to $202.7 million. The increase was primarily due to originations of new loans at current market rates and the favorable repricing of adjustable rate loans.
◦Net interest margin was 3.50%, compared to 3.48%. The yield on interest-earning assets increased 7 basis points to 5.68%, while the cost of interest-bearing liabilities increased 8 basis points to 2.79%. The cost of total deposits, which includes non-interest bearing deposits, was 2.02%, compared to 1.92% for the trailing quarter.
◦Average loans totaled $19.88 billion, an increase of $311.9 million, or 6.37%, primarily due to strong growth within our total commercial portfolio in the quarter.
◦Average total deposits totaled $20.03 billion compared to $19.23 billion.
Provision for credit losses
◦The provision for credit losses was $5.2 million, compared to $9.3 million. The provision for credit losses in the current quarter consisted of a $7.2 million provision related to loans, partially offset by a $2.0 million recapture of provision related to off-balance sheet credit exposures, compared with a $9.6 million of provision for credit losses on loans, partially offset by a $248,000 recapture of provision related to off-balance sheet credit exposures. The additional provision for credit losses on loans in the current quarter was primarily due to an increase in specific reserves on individually evaluated loans, combined with overall growth in the loan portfolio.
◦Net charge-offs were $2.4 million, compared to $1.9 million, while the ratio of net charge-offs to average loans was 0.05%, compared to 0.04%.
Non-interest income and non-interest expense
◦Total non-interest income was $30.5 million, compared to $32.0 million, a decrease of $1.4 million. The decrease was primarily driven by a $2.0 million decrease in fee income, a $1.4 million decrease in other income, and a $935,000 decrease in insurance agency income, partially offset by a $2.7 million increase in BOLI income. The decrease in fee income was primarily related to decreases in loan related fee income and deposit fee income. The decrease in other income was primarily related to decreases in other securities and swap-related fee income, while the decrease in insurance agency income was mainly due to normal seasonality of business activity in the current quarter. The increase in BOLI income was primarily related to an increase in benefit claims.
◦Total non-interest expense was $140.7 million, compared to $119.3 million, an increase of $21.4 million. The increase was mainly due to a $17.5 million loss related to the extinguishment of subordinated debt, a $2.2 million increase related to costs associated with our successful core system conversion, and a $1.0 million increase in data processing expense, which was primarily due to an increase in software maintenance expense.
◦The Company’s annualized core non-interest expense as a percentage of average assets(6) totaled 1.84%, compared to 1.85%. The core efficiency ratio (core non-interest expense divided by the sum of net interest income and core non-interest income)(7) was 49.93%, compared to 49.75%.
Income tax expense
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◦Income tax expense was $23.5 million with an effective tax rate of 25.3%, compared to $27.9 million with an effective tax rate of 26.3%. The decrease in income tax expense was primarily related to a decrease in pre-tax book income, combined with discrete items related to benefits associated with carry-back tax credits. The effective tax rate change was primarily related to the aforementioned discrete items.
Third quarter of 2026 compared to the third quarter of 2025:
Net interest income
◦Net interest income was $208.0 million, compared to $194.3 million. The increase was primarily due to originations of new loans at current market rates, combined with favorable repricing of deposits.
◦Net interest margin was 3.50%, compared to 3.43%. The yield on interest-earning assets was unchanged at 5.68%, while the cost of interest-bearing liabilities decreased 17 basis points to 2.79%. The cost of total deposits, which includes non-interest bearing deposits, was 2.02%, compared to 2.10%, for the same period last year.
◦Average loans totaled $19.88 billion, an increase of $974.4 million, or 5.15%, primarily due to strong loan growth in the quarter.
◦Average total deposits totaled $20.03 billion, an increase of $1.61 billion, or 8.72%.
Provision for credit losses
◦The provision for credit losses was $5.2 million, compared to $7.0 million. The provision for credit losses in the current quarter consisted of a $7.2 million provision related to loans, partially offset by a $2.0 million recapture of provision related to off-balance sheet credit exposures, compared with a $4.5 million and a $2.5 million provision for credit losses on loans and off-balance sheet credit exposures. The increase in the provision for credit losses was primarily due to an increase in specific reserves on individually evaluated loans, combined with overall growth in the loan portfolio.
◦Net charge-offs were $2.4 million, compared to $5.4 million, while the ratio of net charge-offs to average loans was 0.05%, compared to 0.11%.
Non-interest income and non-interest expense
◦Total non-interest income was $30.5 million, compared to $27.4 million, an increase of $3.1 million. The increase was primarily driven by a $3.8 million increase in BOLI income and an $803,000 increase in insurance agency income, partially offset by a $1.1 million decrease in fee income. The increase in BOLI income was primarily related to an increase in benefit claims, while the increase in insurance agency income was due to an increase in business activity in the current quarter. The decrease in fee income was primarily related to a decrease in loan related fee income.
◦Total non-interest expense was $140.7 million, compared to $113.1 million, an increase of $27.6 million. The increase was primarily driven by a $17.5 million loss related to the extinguishment of subordinated debt, a $4.8 million increase in compensation and benefits expense, partially due to increases in salary expense, combined with increases in employee medical benefits and incentive-based compensation expenses, $3.7 million related to costs associated with our core system conversion, a $1.3 million increase in data processing expense and a $969,000 increase in other non-interest expense, partially offset by a $934,000 decrease in amortization of intangibles primarily due to a scheduled reduction in the rate of core deposit intangible amortization related to the merger with Lakeland Bancorp, Inc. The increase in data processing expense was primarily due to an increase in software maintenance expense, while the increase in other non-interest expense was due to increases in loan collection and business development expenses.
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◦The Company’s annualized core non-interest expense as a percentage of average assets(6) totaled 1.84%, compared to 1.83%. The core efficiency ratio (core non-interest expense divided by the sum of net interest income and core non-interest income)(7) was 49.93%, compared to 51.01%.
Income tax expense
◦Income tax expense was $23.5 million, compared to $29.9 million, while the effective tax rate was 25.3%, compared to 29.4%. The decrease in income tax expense was primarily related to a decrease in pre-tax book income, combined with discrete items related to benefits associated with carry-back tax credits. The effective tax rate change was primarily related to the aforementioned discrete items.
About the Company
Provident Financial Services, Inc. is the holding company for Provident Bank, a community-oriented bank offering "Commitment you can count on" since 1839. Provident Bank provides a comprehensive array of financial products and services through its network of branches throughout 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 29, 2026 at 10:00 a.m. Eastern Time to discuss the Company’s financial results for the quarter ended September 30, 2026. The call may be accessed by dialing 1-833-461-5787 (United States Toll Free) and 1-626-884-3620 (United States Local). Speakers will need to enter meeting ID code (178 464 522) before being met by a live operator. 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 2026 results investor presentation is also available on our investor relations website under “Presentations.”
Forward Looking Statements
Certain statements contained herein are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-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.
Non-GAAP Financial Measures
(1) Core net income, pre-provision, net-revenue annualized core return on average assets, annualized return on average tangible equity, tangible common equity capital ratio, tangible book value per share, annualized core non-interest expense as a percentage
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of average assets and the core 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.

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Financial Condition
September 30, 2026 (Unaudited) and December 31, 2025
(Dollars in Thousands)
AssetsSeptember 30, 2026December 31, 2025
Cash and cash equivalents$266,002 $211,484 
Available for sale debt securities, at fair value3,284,350 3,164,756 
Held to maturity debt securities, (net of $22,000 allowance as of September 30, 2026 (unaudited) and $16,000 allowance as of December 31, 2025)
257,084 282,127 
Equity securities, at fair value19,706 19,875 
Federal Home Loan Bank stock128,937 115,687 
Loans held for sale5,632 14,710 
Loans held for investment20,170,070 19,504,061 
Less allowance for credit losses189,469 184,767 
Net loans19,986,233 19,334,004 
Foreclosed assets, net963 2,015 
Banking premises and equipment, net115,748 113,328 
Accrued interest receivable102,095 95,798 
Intangible assets756,453 782,152 
Bank-owned life insurance405,423 414,371 
Other assets524,465 445,113 
Total assets$25,847,459 $24,980,710 
Liabilities and Stockholders' Equity
Deposits:
Demand deposits$15,130,297 $14,402,148 
Savings deposits1,451,633 1,589,259 
Certificates of deposit 3,224,905 3,287,276 
Total deposits19,806,835 19,278,683 
Mortgage escrow deposits45,824 40,253 
Borrowed funds2,390,788 2,111,955 
Subordinated debentures429,464 406,582 
Other liabilities310,057 310,025 
Total liabilities22,982,968 22,147,498 
Stockholders' equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued— — 
Common stock, $0.01 par value, 200,000,000 shares authorized, 137,565,966 shares issued and 130,420,025 shares outstanding as of September 30, 2026 and 130,619,949 outstanding as of December 31, 20251,376 1,376 
Additional paid-in capital1,852,824 1,844,949 
Retained earnings1,288,062 1,154,364 
Accumulated other comprehensive loss (174,940)(76,183)
Treasury stock(102,831)(91,294)
Total stockholders' equity2,864,491 2,833,212 
Total liabilities and stockholders' equity$25,847,459 $24,980,710 
9

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Income
Three months ended September 30, 2026, June 30, 2026 and September 30, 2025, and nine months ended September 30, 2026 and 2025 (Unaudited)
(Dollars in Thousands, except per share data)
Three Months EndedNine Months Ended
September 30,June 30,September 30,September 30,September 30,
20262026202520262025
Interest and dividend income:
Real estate secured loans$203,496 $195,381 $197,252 $590,380 $577,097 
Commercial loans84,026 82,757 81,943 244,685 236,616 
Consumer loans10,074 9,953 10,847 29,927 31,470 
Available for sale debt securities, equity securities and Federal Home Loan Bank stock38,202 35,975 33,578 107,460 94,666 
Held to maturity debt securities1,737 1,778 1,897 5,309 5,859 
Deposits, federal funds sold and other short-term investments736 751 764 2,173 2,227 
Total interest income338,271 326,595 326,281 979,934 947,935 
Interest expense:
Deposits101,856 91,803 102,094 285,595 295,771 
Borrowed funds19,303 23,730 21,307 64,044 63,555 
Subordinated debt9,104 8,382 8,548 25,862 25,455 
Total interest expense130,263 123,915 131,949 375,501 384,781 
Net interest income208,008 202,680 194,332 604,433 563,154 
Provision for credit losses5,240 9,334 7,044 12,458 4,794 
Net interest income after provision for credit losses202,768 193,346 187,288 591,975 558,360 
Non-interest income:
Fees10,286 12,259 11,336 33,009 31,727 
Wealth management income7,825 7,517 7,349 22,745 21,625 
Insurance agency income4,737 5,672 3,934 17,392 14,732 
Bank-owned life insurance6,479 3,798 2,662 14,311 7,340 
Net gain (loss) on securities transactions87 (309)67 (222)153 
Gain on sale of SBA loans450 945 512 2,139 1,822 
Other income662 2,091 1,559 4,579 4,125 
Total non-interest income30,526 31,973 27,419 93,953 81,524 
Non-interest expense:
Compensation and employee benefits67,958 67,289 63,202 201,443 188,817 
Net occupancy expense13,160 12,464 12,773 40,609 39,711 
Data processing expense10,369 9,388 9,102 29,403 28,305 
FDIC Insurance3,155 3,155 3,418 9,150 10,144 
Amortization of intangibles8,563 8,559 9,497 25,685 28,496 
Advertising and promotion expense1,885 1,513 1,640 4,336 4,124 
Core systems conversion expense3,661 1,508 — 5,169 — 
Loss on extinguishment of debt17,501 — — 17,501 — 
Other operating expenses14,429 15,382 13,460 43,786 44,376 
Total non-interest expense140,681 119,258 113,092 377,082 343,973 
Net income before income tax expense92,613 106,061 101,615 308,846 295,911 
Income tax expense23,454 27,914 29,895 82,122 88,182 
Net income$69,159 $78,147 $71,720 $226,724 $207,729 
Basic earnings per share$0.53 $0.60 $0.55 $1.74 $1.59 
Average basic shares outstanding130,389,735130,330,787130,506,517130,410,584130,439,534
10

Diluted earnings per share$0.53 $0.60 $0.55 $1.74 $1.59 
Average diluted shares outstanding130,417,843130,388,396130,553,819130,464,809130,479,443
PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Quarterly Average Balances
 (Dollars in Thousands) (Unaudited)
September 30, 2026June 30, 2026September 30, 2025
Average BalanceInterestAverage
Yield/Cost		Average BalanceInterestAverage
Yield/Cost		Average BalanceInterestAverage
Yield/Cost
Interest-Earning Assets:
Deposits$77,799 $736 3.72 %$73,162 $751 4.09 %$79,471 $764 3.82 %
Available for sale debt securities3,329,68035,8884.31 %3,272,86833,637 4.11 %3,070,08030,9524.03 %
Held to maturity debt securities, net (1)
257,9901,7372.69 %266,7271,778 2.67 %299,5061,8972.53 %
Equity securities, at fair value20,027 126 2.52 %19,986 123 2.46 %19,457 120 2.47 %
Total securities3,607,69737,7514.18 %3,559,58135,5383.99 %3,389,04332,9693.89 %
Federal Home Loan Bank stock108,7062,1887.87 %132,3902,2156.62 %116,7882,5068.58 %
Net loans: (2)
Total mortgage loans13,843,143203,4965.84 %13,636,285195,3815.75 %13,390,032197,2525.85 %
Total commercial loans5,433,58584,0266.14 %5,327,39582,7576.23 %4,908,13181,9436.63 %
Total consumer loans604,41010,0746.61 %605,5799,9536.59 %608,60010,8477.07 %
Total net loans19,881,138297,5965.94 %19,569,259288,0915.90 %18,906,763290,0426.09 %
Total interest-earning assets$23,675,340 $338,271 5.68 %$23,334,392 $326,595 5.61 %$22,492,065 $326,281 5.76 %
Non-Interest Earning Assets:
Cash and due from banks151,192162,746154,859
Other assets1,819,515 1,800,478 1,871,366
Total assets$25,646,047 $25,297,616 $24,518,290 
Interest-Bearing Liabilities:
Demand deposits$11,338,331 $72,205 2.53 %$10,674,922 $63,736 2.39 %$10,280,314 $70,584 2.72 %
Savings deposits1,532,9837910.20 %1,599,6228140.20 %1,596,0728960.22 %
Time deposits3,303,54128,8603.47 %3,236,51927,2533.38 %3,287,24130,6143.69 %
Total deposits16,174,855101,8562.50 %15,511,06391,8032.37 %15,163,627102,0942.67 %
Borrowed funds1,911,91719,3034.01 %2,435,40423,7303.91 %2,136,11121,3073.96 %
Subordinated debentures448,066 9,104 8.06 %408,260 8,382 8.23 %404,548 8,548 8.38 %
Total interest-bearing liabilities18,534,838130,2632.79 %18,354,727123,9152.71 %17,704,286131,9492.96 %
Non-Interest Bearing Liabilities:
Non-interest bearing deposits3,850,9523,716,1043,725,645
Other non-interest bearing liabilities337,171329,223349,945
Total non-interest bearing liabilities4,188,1234,045,3274,075,590
Total liabilities22,722,96122,400,05421,779,876
Stockholders' equity2,923,0862,897,5622,738,414
Total liabilities and stockholders' equity$25,646,047 $25,297,616 $24,518,290 
Net interest income$208,008 $202,680 $194,332 
Net interest rate spread2.89 %2.90 %2.80 %
Net interest-earning assets$5,140,502 $4,979,665 $4,787,779 
Net interest margin (3)
3.50 %3.48 %3.43 %
Ratio of interest-earning assets to total interest-bearing liabilities1.28x1.27x1.27x
11

(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.
The following table summarizes the quarterly net interest margin for the previous five quarters.
9/30/266/30/263/31/2612/31/259/30/25
3rd Qtr.2nd Qtr.1st Qtr.4th Qtr.3rd Qtr.
Interest-Earning Assets:
Securities4.18 %3.99 %3.80 %3.87 %3.89 %
Net loans5.94 %5.90 %5.85 %5.98 %6.09 %
Total interest-earning assets5.68 %5.61 %5.53 %5.66 %5.76 %
Interest-Bearing Liabilities:
Deposits2.50 %2.37 %2.39 %2.60 %2.67 %
Borrowings4.01 %3.91 %3.90 %3.94 %3.96 %
Total interest-bearing liabilities2.79 %2.71 %2.71 %2.83 %2.96 %
Interest rate spread2.89 %2.90 %2.82 %2.83 %2.80 %
Net interest margin3.50 %3.48 %3.40 %3.44 %3.43 %
Ratio of interest-earning assets to interest-bearing liabilities1.28x1.27x1.27x1.28x1.27x


















12


PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Average Year to Date Balances
(Dollars in Thousands) (Unaudited)
September 30, 2026September 30, 2025
AverageAverageAverageAverage
BalanceInterestYield/CostBalanceInterestYield/Cost
Interest-Earning Assets:
Deposits$75,855 $2,173 3.83 %$78,434 $2,227 4.21 %
Available for sale debt securities3,273,782 100,983 4.11 %2,952,923 87,530 3.95 %
Held to maturity debt securities, net (1)
266,129 5,309 2.66 %311,507 5,859 2.51 %
Equity securities, at fair value20,001 370 2.46 %19,294 469 3.24 %
Total securities3,559,912 106,662 3.99 %3,283,724 93,858 3.81 %
Federal Home Loan Bank stock120,422 6,107 6.76 %119,503 6,667 7.48 %
Net loans: (2)
Total mortgage loans13,691,826 590,380 5.76 %13,362,561 577,097 5.77 %
Total commercial loans5,306,577 244,685 6.16 %4,803,599 236,616 6.59 %
Total consumer loans605,173 29,927 6.61 %609,979 31,470 6.90 %
Total net loans19,603,576 864,992 5.90 %18,776,139 845,183 6.02 %
Total interest-earning assets$23,359,765 $979,934 5.61 %$22,257,800 $947,935 5.69 %
Non-Interest Earning Assets:
Cash and due from banks161,604 146,568 
Other assets1,804,260 1,908,122 
Total assets$25,325,629 $24,312,490 
Interest-Bearing Liabilities:
Demand deposits$10,926,221 $199,300 2.44 %$10,084,036 $200,819 2.66 %
Savings deposits1,579,450 2,444 0.21 %1,641,821 2,720 0.22 %
Time deposits3,257,273 83,851 3.44 %3,228,399 92,232 3.82 %
Total deposits15,762,944 285,595 2.42 %14,954,256 295,771 2.64 %
Borrowed funds2,176,348 64,044 3.93 %2,182,319 63,555 3.89 %
Subordinated debentures421,265 25,862 8.21 %403,299 25,455 8.44 %
Total interest-bearing liabilities$18,360,557 $375,501 2.73 %$17,539,874 $384,781 2.93 %
Non-Interest Bearing Liabilities:
Non-interest bearing deposits3,737,976 3,715,008 
Other non-interest bearing liabilities328,993 370,224 
Total non-interest bearing liabilities4,066,969 4,085,232 
Total liabilities22,427,526 21,625,106 
Stockholders' equity2,898,103 2,687,384 
Total liabilities and stockholders' equity$25,325,629 $24,312,490 
Net interest income$604,433 $563,154 
Net interest rate spread2.88 %2.76 %
Net interest-earning assets$4,999,208 $4,717,926 
Net interest margin (3)
3.46 %3.38 %
Ratio of interest-earning assets to total interest-bearing liabilities1.27x1.27x
(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 loans held for sale and non-accrual loans.
(3)Annualized net interest income divided by average interest-earning assets.
13

The following table summarizes the year-to-date net interest margin for the previous three years.
Nine Months Ended
September 30, 2026September 30, 2025September 30, 2024
Interest-Earning Assets:
Securities3.99 %3.81 %3.10 %
Net loans5.90 %6.02 %5.99 %
Total interest-earning assets5.61 %5.69 %5.61 %
Interest-Bearing Liabilities:
Deposits2.42 %2.64 %2.84 %
Borrowings3.93 %3.89 %3.73 %
Total interest-bearing liabilities2.73 %2.93 %3.06 %
Interest rate spread2.88 %2.76 %2.55 %
Net interest margin3.46 %3.38 %3.18 %
Ratio of interest-earning assets to interest-bearing liabilities1.27x1.27x1.26x




Notes and Reconciliation of GAAP and Non-GAAP Financial Measures
(Dollars in Thousands, except share data)
The Company has presented the following non-GAAP (U.S. Generally Accepted Accounting Principles) financial measures because it believes 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) Core Net Income
Three months EndedNine months Ended
September 30,September 30,
20262026
Net interest income$208,008 $604,433 
Provision for loan losses5,240 12,458 
Net interest income after provision for loan losses$202,768 $591,975 
Non-interest income30,526 93,953 
Non-interest expense$140,681 $377,082 
Loss on extinguishment of debt17,501 17,501 
Executive severance expense— 864 
Core system conversion expense3,661 5,169 
Restructuring expenses465 465 
Core non-interest expense$119,054 $353,083 
Income taxes23,454 82,122 
Income tax of non-core items6,508 7,221 
Core net income$84,278 $243,502 
Avg. diluted shares outstanding for the 3 and 9 months ended September 30, 2026130,417,843 130,464,809 
14

Core diluted earnings per share$0.65 $1.87 
(2) Annualized core pre-provision net revenue ("PPNR") returns on average assets, average equity and average tangible equity
Three Months Ended
September 30,June 30,March 31,December 31,September 30,
20262026202620252025
Net income$69,159 $78,147 $79,417 $83,431 $71,720 
Adjustments to net income:
Provision for credit losses5,240 9,334 (2,116)(1,213)7,044 
Loss on extinguishment of debt17,501 — — — — 
Executive severance expense— 864 — — — 
Core system conversion expense3,661 1,508 — — — 
Restructuring expenses465 — — — — 
Income tax expense23,454 27,914 30,754 28,814 29,895 
Core PPNR$119,480 $117,767 $108,055 $111,032 $108,659 
Annualized core PPNR income$474,024 $472,362 $438,223 $440,507 $431,093 
Add.: Amortization of Intangibles$8,563 $8,559 $8,563 $8,578 $9,497 
Annualized Amortization of Intangibles$33,973 $34,330 $34,728 $34,032 $37,678 
Annualized Core PPNR earnings incl amortization of intangibles $507,997 $506,692 $472,951 $474,540 $468,771 
Core diluted earnings per share$130,417,843 $130,388,396 $130,588,635 $130,589,271 $130,553,819 
Core PPNR Diluted EPS$0.92 $0.90 $0.83 $0.85 $0.83 
Average assets$25,646,047 $25,297,616 $25,026,414 $24,775,214 $24,518,290 
Average equity$2,923,086 $2,897,562 $2,873,113 $2,810,166 $2,738,414 
Average tangible equity$2,160,972 $2,126,989 $2,093,975 $2,022,451 $1,941,625 
Annualized core PPNR return on average assets1.85 %1.87 %1.75 %1.78 %1.76 %
Annualized core PPNR return on average equity16.22 %16.30 %15.25 %15.68 %15.74 %
Annualized core PPNR return on average tangible equity23.51 %23.82 %22.59 %23.46 %24.14 %
(3) Annualized Core Return on Average Assets, Average Equity and Average Tangible Equity
For the Quarter Ended
September 30,June 30,March 31,December 31,September 30,
20262026202620252025
Net Income$69,159 $78,147 79,417 83,431 $71,720 
Loss on extinguishment of debt17,501 — — — — 
Executive severance expense— 864 — — — 
Core system conversion expense3,661 1,508 — — — 
Restructuring expenses465 — — — — 
Less: income tax expense(6,508)(714)— — — 
Annualized core net income$84,278 79,805 79,417 83,431 71,720 
Plus: Amortization of Intangibles (net of tax)5,986 5,984 5,986 5,997 6,639 
Annualized core net income for annualized core return on average tangible equity$90,264 $85,789 $85,403 $89,428 $78,359 
Average assets$25,646,047 $25,297,616 $25,026,414 $24,775,214 $24,518,290 
Average equity$2,923,086 $2,897,562 $2,873,113 $2,810,166 $2,738,414 
Average tangible equity$2,160,972 $2,126,989 $2,093,975 $2,022,451 $1,941,625 
Annualized Core Return on Average Assets1.30 %1.27 %1.29 %1.34 %1.16 %
Annualized Core Return on Average Equity11.44 %11.05 %11.21 %11.78 %10.39 %
Annualized Core Return on Average Tangible Equity16.57 %16.18 %16.54 %17.54 %16.01 %
15

(4) Tangible Common Equity Ratio, Book and Tangible Book Value per Share
Three Months Ended
September 30,June 30,March 31,December 31,September 30,
20262026202620252025
Total assets$25,847,459 $25,663,358 $25,201,690 $24,980,710 $24,832,763 
Less: total intangible assets756,453 765,019 773,585 782,152 790,729 
Total tangible assets$25,091,006 $24,898,339$24,428,105$24,198,558$24,042,034
Total stockholders' equity$2,864,491 $2,906,985 $2,862,869 $2,833,212 $2,767,035 
Less: total intangible assets756,453 765,019 773,585 782,152 790,729 
Total tangible stockholders' equity$2,108,038 $2,141,966 $2,089,284 $2,051,060 $1,976,306 
Tangible common equity ratio8.40 %8.60 %8.55 %8.48 %8.22 %
Shares outstanding130,420,025 $130,423,051 $130,311,796 $130,619,949 $130,621,757 
Book value per share (total stockholders' equity/shares outstanding)$21.96 $22.29 $21.97 $21.69 $21.18 
Tangible book value per share (total tangible stockholders' equity/shares outstanding)$16.16 $16.42 $16.03 $15.70 $15.13 
(5) Annualized Return on Average Tangible Equity
Three Months Ended
September 30,June 30,March 31,December 31,September 30,
20262026202620252025
Total average stockholders' equity$2,923,086 $2,897,562 $2,873,113 $2,810,166 $2,738,414 
Less: total average intangible assets762,114 770,573 779,138 787,715 796,789 
Total average tangible stockholders' equity$2,160,972 $2,126,989 $2,093,975 $2,022,451 $1,941,625 
Net income$69,159 $78,147 $79,417 $83,431 $71,720 
Plus: Amortization of Intangibles, net of tax5,986 $5,984 $5,986 $5,997 $6,639 
Total net income$75,145 $84,131 $85,403 $89,428 $78,359 
Annualized return on average tangible equity (net income/total average tangible stockholders' equity)13.80 %15.87 %16.54 %17.54 %16.01 %
(6) Annualized Core Non-Interest Expense to Average Assets
Three Months Ended
September 30,June 30,March 31,December 31,September 30,
20262026202620252025
Reported non-interest expense$140,681 $119,258 $117,141 $114,690 $113,092 
Adjustments to non-interest expense:
Loss on extinguishment of debt17,501 — — — — 
Executive severance expense— 864 — — — 
Core system conversion expense3,661 1,508 — — — 
Restructuring expenses465 — — — — 
Core non-interest expense$119,054 $116,886 $117,141 $114,690 $113,092 
Annualized core non-interest expense$472,334 $468,828 $475,072 $455,020 $448,680 
Average assets$25,646,047 $25,297,616 $25,026,414 $24,775,214 $24,518,290 
Annualized core non-interest expense/average assets1.84 %1.85 %1.90 %1.84 %1.83 %
(7) Core Efficiency Ratio Calculation
Three Months Ended
September 30,June 30,March 31,December 31,September 30,
20262026202620252025
Net interest income$208,008 $202,680 $193,743 $197,411 $194,332 
Reported non-interest income30,526 31,973 31,453 28,311 27,419 
Adjustments to non-interest income:
Net (gain) loss on securities transactions(87)309 — (690)(67)
Core non-interest income30,439 32,282 31,453 27,621 27,352 
16

Total core income$238,447 234,962 225,196 225,032 221,684 
Core non-interest expense $119,054 116,886 117,141 114,690 113,092 
Core Efficiency ratio (core non-interest expense/core income)49.93 %49.75 %52.02 %50.97 %51.01 %
17