PFS · Provident Financial Services, Inc.

Provident Financial Services delivered a strong first quarter 2026, demonstrating expanding profitability metrics with ROAA reaching 1.29% and ROATCE hitting 16.58%. The performance was driven by a 7% year-over-year increase in net interest income, supported by higher net interest margin and growth in earning assets. Core net interest margin expanded to 3.04%, benefiting from efforts to reduce deposit costs and favorable repricing of maturing loans. Average interest-earning assets increased $264 million from the prior quarter. Commercial lending activity remained robust, with new production of $649.2 million driving 3.9% annualized commercial loan growth. The total commercial pipeline stands at a record $3.11 billion with a weighted average rate of 6.24%, indicating continued momentum. Non-interest income reached a record $31.5 million, up significantly from $26.9 million in the same quarter last year, driven by growth in insurance agency income and wealth management fees. Asset quality metrics remain strong overall, though non-performing loans increased by $64.5 million linked-quarter, primarily due to four senior housing loans totaling $82.1 million associated with bankruptcy filings. Management noted these loans have strong collateral values with low loan-to-value ratios and require no specific reserve allocations. Net charge-offs remained low at 0.06% annualized. Capital ratios are comfortably above well-capitalized levels, and the company returned capital to shareholders through dividends and the repurchase of 588,923 shares at an average price of $21.04. Looking ahead, management provided 2026 guidance targeting 4-6% growth in both loans and deposits, with a full-year reported net interest margin expected in the range of 3.40% to 3.45%.