Provident Financial Services (PFS) investor relations material

Executive summary

• Net income for Q1 2026 was $79.4 million ($0.61 per share), up 24% year-over-year, with strong profitability metrics and pre-provision net revenue growth of 13.5% driven by higher net interest and insurance income.

• Annualized return on average assets was 1.29%, and adjusted return on average tangible common equity reached 16.6%.

• Commercial loan production rose 8% year-over-year, with a record commercial loan pipeline and diversified growth across CRE, C&I, specialty lending, and middle market.

• Non-maturity core deposits increased, but total deposits declined due to seasonal municipal outflows and reduced broker deposits.

• A $2.1 million recapture of previous credit loss provisions contributed positively to results.

Financial highlights

• Total assets reached $25.20 billion as of March 31, 2026, with loans held for investment at $19.65 billion.

• Net interest income was $194 million, and non-interest income reached a record $31.5 million, led by insurance and BOLI income.

• Net interest margin was 3.40%, up 6 bps year-over-year, with expectations for slight expansion in Q2.

• Non-interest expense rose to $117.1 million, mainly due to higher compensation and occupancy costs, but efficiency ratio improved to 52%.

• Tangible book value per share increased $0.33 to $16.03, and tangible common equity ratio rose to 8.55%.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: 4%-6% loan and deposit growth, non-interest income averaging $28.5 million per quarter, core ROA of 1.2%-1.3%, and mid-teens return on average tangible common equity.

• NIM outlook tightened to 3.4%-3.45% for 2026, with three basis points of core NIM expansion expected in Q2.

• Core operating expenses projected at $117-$119 million per quarter for the remainder of 2026, with higher run rate in the second half due to core system upgrades.

• Management expects to retain a significant share of maturing deposit accounts and maintains sufficient liquidity to meet funding needs.

• Interest rate risk is managed to maintain a neutral position; a 200 basis point rate increase is projected to decrease net interest income by 1.6%.