Provident Financial Services (PFS) investor relations material

Executive summary

• Achieved record revenues and strong profitability in Q4, with net earnings of $83.4 million ($0.64 per share) and annualized ROA of 1.34%.

• Full-year 2025 net income was $291.2 million ($2.23 per share), up from $115.5 million in 2024.

• Pre-provision net revenue reached a record $111 million, with consistent growth since the Lakeland transaction.

• Organic growth momentum was sustained across both loans and deposits, supported by positive operating leverage and a loan pipeline consistently over $2.5 billion for the past four quarters.

• No merger-related transaction costs in 2025, compared to $117 million in 2024; 2024 results included a $60.1 million CECL provision from the Lakeland merger.

Financial highlights

• Revenue hit a record $226 million, with net interest income of $197.4 million and non-interest income of $28.3 million.

• Average earning assets increased $307 million (annualized 5.4%) versus the prior quarter.

• Core net interest margin rose 7 basis points to 3.01%; reported NIM at 3.44%.

• Tangible book value per share increased $0.57 to $15.70; tangible common equity ratio rose to 8.48%.

• Total commercial loan portfolio grew by $225.3 million (5.35% annualized) to $16.93 billion in Q4 2025; total deposits increased by $182.4 million (3.79% annualized) to $19.28 billion.

Outlook and guidance

• Projecting core NIM expansion of 3-5 basis points per quarter, with reported NIM in the 3.4%-3.5% range for 2026.

• Expecting loan and deposit growth of 4%-6% in 2026, non-interest income to average $28.5 million per quarter.

• Targeting core ROA of 1.20%-1.30% and mid-teens return on average tangible common equity.

• Core system conversion scheduled for Labor Day weekend 2026, with $5 million in non-recurring charges expected.

• Management expects continued EPS growth and compounding tangible book value in 2026, with ongoing investments to sustain momentum.