Provident Financial Services reported net income of $71.7 million for the third quarter of 2025, showing steady performance compared to previous quarters. The company saw record revenue of $221.8 million, with increased interest-earning assets and deposits. The net interest margin improved to 3.43%, reflecting strong financial management and growth strategies. Non-performing assets decreased to 0.41%. Tangible book value per share increased to $15.13.

The Company’s commercial loan portfolio showed growth, with C&I loans increasing by $149.0 million and total commercial loans increasing by $191.2 million. Total deposits saw an increase of $387.7 million, with core deposits growing by $290.8 million. A loan pipeline of $2.87 billion was reported, with a weighted average interest rate of 6.15%. The net interest margin increased to 3.43%.

Provident Financial Services recorded a provision for credit losses of $7.0 million for the quarter, improving non-performing assets to total assets ratio to 0.41%. The allowance for credit losses as a percentage of loans decreased to 0.97%. Tangible book value per share increased to $15.13, and the tangible common equity ratio increased to 8.22%. The company has no financial risk tied to non-depository financial institutions. In the quarter ended September 30, 2025, the company saw an increase in net interest income due to new loans and securities at current market rates, but also a decrease in average lower-costing deposits. The net interest margin increased to 3.43%, with a weighted average yield on interest-earning assets at 5.76%.

Non-interest income for the quarter totaled $27.4 million, with increases in fee income and wealth management income, but a decrease in insurance agency income. Non-interest expense was $113.1 million, a decrease of $1.5 million, primarily driven by decreases in other operating expenses and data processing expense.

Income tax expense for the quarter was $29.9 million, with an effective tax rate of 29.4%. The company reported a net income of $71.7 million, or $0.55 per basic and diluted share, for the three months ended September 30, 2025, compared to $46.4 million for the same period in 2024.

Net interest income increased to $194.3 million for the three months ended September 30, 2025, from $183.7 million for the same period in 2024. The net interest margin increased to 3.43%, with a weighted average yield on interest-earning assets at 5.76%. The weighted average cost of interest-bearing liabilities decreased to 2.96% compared to 3.19% in 2024. The average cost of interest-bearing deposits decreased to 2.67% in Q3 2025 from 2.96% in Q3 2024. Non-interest-bearing demand deposits dropped to $3.73 billion from $3.74 billion in the same period. Borrowed funds cost 3.96% in Q3 2025, up from 3.73% last year.

A provision for credit losses on loans was $4.5 million in Q3 2025, down from $9.6 million in Q3 2024. Net charge-offs were $5.4 million in Q3 2025, a decrease from $6.8 million in Q3 2024. Non-interest income rose to $27.4 million in Q3 2025, with fee income at $11.3 million.

Non-interest expense was $113.1 million in Q3 2025, down from $136 million in Q3 2024. The efficiency ratio improved to 51.01% in Q3 2025 from 57.20% in Q3 2024. Income tax expense was $29.9 million in Q3 2025, with an effective tax rate of 29.4%.

For the nine months ended September 30, 2025, net income was $207.7 million, or $1.59 per share, up from $67 million, or $0.65 per share, in the same period last year. Net interest income increased to $563.2 million in the first nine months of 2025, with a net interest margin of 3.38%. The weighted average yield on interest earning assets for the nine months ended September 30, 2025, was 5.69%, with a decrease in the weighted average cost of interest-bearing liabilities to 2.93%. Non-interest income totaled $81.5 million, a $11.6 million increase from 2024. Non-interest expense was $344.0 million, up $20.7 million from the previous year. The Company’s income tax expense for the same period was $88.2 million, with an effective tax rate of 29.8%. The company’s pre-tax income was negatively impacted by the CECL provision for credit losses on loans of $60.1 million. Non-performing loans as of September 30, 2025, were $100.4 million, a decrease from the previous quarter. The allowance for credit losses related to the loan portfolio decreased to 0.97% of total loans.

Total assets as of September 30, 2025, were $24.83 billion, primarily due to an increase in loans held for investment. The loan portfolio totaled $19.29 billion, with commercial loans representing 86.6% of the portfolio. Loan funding for the nine months ended September 30, 2025, was $7.00 billion, an increase from the previous year.

The company’s unfunded loan commitments totaled $3.82 billion as of September 30, 2025, with a loan pipeline of $2.89 billion. Total investment securities were $3.57 billion, primarily due to purchases of mortgage-backed securities. Total deposits increased to $19.10 billion, with savings and demand deposit accounts totaling $15.73 billion. Provident Financial Services, Inc. saw an increase in time deposits, savings, and demand deposits, as well as borrowed funds and stockholders’ equity. Common stock repurchases were made during the period. The company will hold a post-earnings conference call on October 30, 2025, to discuss financial results for the quarter ended September 30, 2025.

Provident Financial Services, Inc. is the holding company for Provident Bank, offering financial products and services in several locations. The company will hold a conference call for investors to discuss financial results for the quarter ended September 30, 2025, on October 30, 2025.

Certain statements in the company’s report are “forward-looking statements,” subject to risks and uncertainties. Factors such as economic conditions, government regulations, interest rates, and more could impact the company’s financial performance. The company advises caution in relying on these statements as they could differ from actual results. In the third quarter of 2025, Provident Financial Services, Inc. reported a net interest income of $194,332, with a net income of $71,720 and diluted earnings per share of $0.55. The company’s annualized return on average assets was 1.16% and the efficiency ratio was 51.01%. Non-performing loans to total loans held for investment were at 0.52%. The company’s tangible common equity ratio was 8.22%. The company’s total assets amounted to $24,832,763, and total liabilities were $22,065,728.

During the same period, the average interest income for Provident Financial Services, Inc. was $326,281, with a net interest income of $194,332. The company reported total non-interest income of $27,419. The total non-interest expense was $113,092, resulting in a net income of $71,720. The company’s basic earnings per share were $0.55, and diluted earnings per share were also $0.55. The total assets for the company were $24,832,763, with total liabilities of $22,065,728.

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