PFS · Provident Financial Services, Inc.

Provident Financial Services reported Q1 2026 net income of $79.4 million ($0.61 per share), a decrease from $83.4 million ($0.64) in Q4 2025 but a significant increase from $64.0 million ($0.49) in Q1 2025. The sequential decline was driven by two fewer calendar days and lower accelerated accretion from Lakeland merger loan payoffs, partially offset by favorable deposit repricing. Year-over-year, net interest income rose $12.0 million to $193.7 million, supported by loan growth and lower deposit costs. Net interest margin expanded 6 bps to 3.40% YoY but contracted 4 bps sequentially. Core NIM (excluding purchase accounting) improved 3 bps to 3.04% from the prior quarter. Non-interest income reached a record $31.5 million, led by insurance agency income of $6.9 million (up $3.0 million sequentially) and BOLI income. The company recorded a $2.1 million recapture of credit provisions, compared to a $1.2 million recapture in Q4 2025 and a $0.6 million provision in Q1 2025. Net charge-offs were $3.1 million (6 bps annualized). Non-performing loans rose to 0.73% from 0.40%, primarily due to $82.1 million in senior housing loans subject to bankruptcy, though collateral values provide coverage. The loan pipeline reached a record $3.11 billion at 6.24% weighted average rate. Management expressed optimism about continued EPS growth and tangible book value compounding. The company repurchased $12.4 million in stock during the quarter.