Open the filing on EDGARProvident Financial Services, Inc. Reports Second Quarter Earnings
ISELIN, NJ, July 29, 2026 - Provident Financial Services, Inc. (NYSE:PFS) (the “Company”) reported net income of $78.1 million, or $0.60 per basic and diluted share for the three months ended June 30, 2026, compared to $79.4 million, or $0.61 per basic and diluted share, for the three months ended March 31, 2026 and $72.0 million, or $0.55 per basic and diluted share, for the three months ended June 30, 2025. For the six months ended June 30, 2026, net income totaled $157.6 million, or $1.21 per basic and diluted share, compared to $136.0 million, or $1.04 per basic and diluted share, for the six months ended June 30, 2025. For the three and six months ended June 30, 2026, core net income , which has been adjusted for one-time core system conversion and executive severance expenses, totaled $79.9 million, or $0.61 per basic and diluted share and $159.3 million, or $1.22 per basic and diluted share, respectively.
Core pre-provision, net revenue ("PPNR") for the three months ended June 30, 2026 was $117.8 million, or $0.90 per basic and diluted share for the three months ended June 30, 2026, compared to $99.6 million, or $0.76 per basic and diluted share, for the three months ended June 30, 2025. Increases in both net income and core PPNR were driven primarily by expanding net interest income and higher non-interest income, including higher wealth management and insurance agency income.
Anthony J. Labozzetta, President and Chief Executive Officer commented, “Through the first half of 2026, Provident has grown earnings per share 17% year-over-year while also significantly improving our profitability and building capital. We achieved record pre-provision net revenue during the second quarter, driven by strong commercial loan production, expanding core margin and increasing contribution from non-interest income, which represented nearly 14% of total revenues. We are proud of the noticeable momentum of our organization, and I’m optimistic that we will continue to drive organic growth with an unchanged commitment to achieving top quartile risk-adjusted returns."
Key Points for the Second Quarter
- Expanding Core Profitability with Record Revenue
- Annualized core return on average assets ("ROAA") and net interest margin improved to 1.27% and 3.48%, respectively, from 1.19% and 3.36% in the prior year quarter. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 2 of the earnings release.
- Core net interest margin, which excludes the impact of purchase accounting accretion and amortization and interest recovery on resolved non-performing loans, increased 5 basis points from the trailing quarter to 3.09% and 16 basis points from the prior year quarter.
- Core PPNR growth of $18.2 million from the prior year quarter, resulting in a 23 basis point expansion of PPNR ROAA to 1.87%. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 2 of the earnings release.
- Record net-interest income increased $15.6 million to $202.7 million when compared to the prior year quarter, driven primarily by growth in our earning assets and an expanded net interest margin.
- Record non-interest income increased $4.9 million to $32.0 million when compared to the prior year quarter, driven primarily by growth in loan related fee income, swap fee income, wealth management and insurance agency income.
- Strong Loan Growth Trends with Low Net Charge-Offs
- Total commercial loans, including mortgage warehouse lines, commercial mortgage, multi-family and construction loans, increased 9.9% annualized for the quarter.
- Our record pipeline totaled $3.17 billion as of June 30, 2026, with a weighted average interest rate of 6.33%. Both the CRE and C&I pipelines exceeded $1.0 billion for the second consecutive quarter,
reflecting the investments we have made in our commercial banking group to generate sustainable, diversified loan growth.
- Non-performing loans declined $6.0 million compared to the trailing quarter to $136.9 million. Net charge-offs of $1.9 million and $5.0 million for the quarter and six months ended June 30, 2026, represent an annualized 4 and 5 basis points of average loans, respectively.
- Building Capital Position further Strengthening the Balance Sheet
- Tangible book value ("TBV") per share grew 2% to $16.42 quarter over quarter and grew 12% year over year.
- Tangible common equity ratio has grown consistently, increasing from 8.03% as of June 30, 2025, to 8.60% as of June 30, 2026.
- Common Equity Tier One and Total Risk Based Capital ratios for Provident Bank were above well-capitalized at 12.1% and 13.0% as of June 30, 2026, respectively.
- The Company's adjusted CRE concentration ratio, excluding purchase accounting adjustments as of June 30, 2026 was 399.7%, compared to 399.5% as of December 31, 2025.
| For the Quarter Ended |
|---|
| June 30, | March 31, | December 31, | September 30, | June 30, |
|---|
| 2026 | 2026 | 2025 | 2025 | 2025 |
|---|
| Second Quarter 2026 Financial Highlights and Key Performance Indicators (KPIs): |
| Annualized return on average assets | 1.24% | | 1.29% | | 1.34% | | 1.16% | | 1.19% | |
| Annualized core return on average assets | 1.27% | | 1.29% | | 1.34% | | 1.16% | | 1.19% | |
| Annualized return on average equity | 10.82% | | 11.21% | | 11.78% | | 10.39% | | 10.76% | |
| Annualized core return on average equity | 11.05% | | 11.21% | | 11.78% | | 10.39% | | 10.76% | |
| Annualized return on average tangible equity | 15.90% | | 16.58% | | 17.58% | | 16.01% | | 16.79% | |
| Annualized core return on average tangible equity | 16.22% | | 16.58% | | 17.58% | | 16.01% | | 16.79% | |
| Annualized core non-interest expense to average assets | 1.85% | | 1.90% | | 1.84% | | 1.83% | | 1.89% | |
| Core efficiency ratio | 49.75% | | 52.02% | | 50.97% | | 51.01% | | 53.52% | |
| Non-performing loans to total loans | 0.68% | | 0.73% | | 0.40% | | 0.52% | | 0.56% | |
| Non-performing assets to total assets | 0.54% | | 0.58% | | 0.32% | | 0.41% | | 0.44% | |
| Allowance for loan losses to total non-performing loans | 134.87% | | 123.84% | | 235.61% | | 186.21% | | 175.32% | |
| Allowance for loan losses to total loans | 0.92% | | 0.90% | | 0.95% | | 0.97% | | 0.98% | |
| Annualized net loan charge-offs to average total loans | 0.04% | | 0.06% | | 0.09% | | 0.11% | | 0.03% | |
| Average yield on interest-earning assets | 5.61% | | 5.53% | | 5.66% | | 5.76% | | 5.68% | |
| Average cost of interest-bearing liabilities | 2.71% | | 2.71% | | 2.83% | | 2.96% | | 2.94% | |
| Net interest margin | | 3.48% | | 3.40% | | 3.44% | | 3.43% | | 3.36% |
| Annualized core PPNR return on average assets | 1.87% | | 1.75% | | 1.78% | | 1.76% | | 1.64% | |
| Annualized core PPNR return on average equity | 16.30% | | 15.25% | | 15.68% | | 15.74% | | 14.88% | |
| Annualized core PPNR return on average tangible equity | 22.21% | | 20.93% | | 21.78% | | 22.20% | | 21.26% | |
Balance Sheet Summary
Assets:
- Total assets as of June 30, 2026 were $25.66 billion, compared to $24.98 billion as of December 31, 2025.
- Total investment securities were $3.57 billion as of June 30, 2026, compared to $3.47 billion as of December 31, 2025. The increase in investment securities was primarily due to purchases of mortgage-backed securities, partially offset by an increase in unrealized losses on available for sale debt securities.
- Loans held for investment totaled $20.05 billion as of June 30, 2026, and $19.50 billion as of December 31, 2025, with net increases of $407.6 million of commercial loans, $139.5 million of multi-family loans and $103.8 million of commercial mortgage loans, partially offset by net decreases of $43.1 million of mortgage warehouse lines, $35.6 million of residential mortgage loans, $23.2 million of construction loans and $5.1 million of consumer loans.
- Total commercial loans, including mortgage warehouse lines, commercial mortgage, multi-family and construction loans, represented 87.3% of the loan portfolio as of June 30, 2026, compared to 86.7% as of December 31, 2025.
- Loan funding, including advances on lines of credit, totaled $5.28 billion as of June 30, 2026, compared with $4.30 billion for the same period in 2025.
- The Company’s unfunded loan commitments totaled $4.07 billion, including commitments of $2.37 billion in commercial loans, $717.0 million in construction loans and $283.5 million in commercial mortgage loans. Unfunded loan commitments as of December 31, 2025 and June 30, 2025 were $3.71 billion and $3.74 billion, respectively.
| June 30, 2026 | March 31, 2026 | December 31, 2025 |
|---|
| (Dollars in thousands) |
|---|
| Mortgage loans: | | | |
| Commercial | $7,502,579 | $7,423,652 | $7,398,792 |
| Multi-family | 3,806,823 | 3,724,236 | 3,667,337 |
| Construction | 638,933 | 640,929 | 662,112 |
| Residential | 1,938,704 | 1,960,861 | 1,974,324 |
| Total mortgage loans | 13,887,039 | 13,749,678 | 13,702,565 |
| Commercial loans | 5,251,096 | 4,966,608 | 4,843,466 |
| Mortgage warehouse lines | 313,934 | 334,505 | 357,051 |
| Consumer loans | 607,373 | 608,016 | 612,431 |
| Total gross loans | 20,059,442 | 19,658,807 | 19,515,513 |
| Premiums on purchased loans | 1,663 | 1,700 | 1,524 |
| Net deferred fees and unearned discounts | (15,353) | (12,805) | (12,976) |
| Total loans | $20,045,752 | $19,647,702 | $19,504,061 |
Liabilities and Capital:
- Total deposits were $19.55 billion as of June 30, 2026, compared to $19.28 billion as of December 31, 2025. Total savings and demand deposit accounts increased $110.3 million to $16.10 billion as of June 30, 2026, while total time deposits increased $156.2 million to $3.44 billion as of June 30, 2026. The increase in savings and demand deposits was largely attributable to a $351.4 million increase in money market deposits and a $94.1 million increase in non-interest bearing demand deposits, partially offset by a $328.7 million decrease in interest bearing demand deposits. Within interest bearing demand deposits, municipal deposits decreased $443.4 million, primarily due to seasonal outflows. To assist in funding the aforementioned seasonal outflows, brokered time deposits increased by $149.3 million.
| June 30, 2026 | March 31, 2026 | December 31, 2025 |
|---|
| (Dollars in thousands) |
|---|
| Non-interest bearing | $3,808,318 | 3,716,536 | 3,714,253 |
| Savings | 1,582,750 | 1,624,122 | 1,589,259 |
| Money market | 4,044,648 | 3,846,653 | 3,693,285 |
| Negotiable Order of Withdrawal ("NOW") | 6,665,950 | 6,723,369 | 6,994,610 |
| Certificates of deposit | 3,443,503 | 3,189,622 | 3,287,276 |
| Total deposits | $19,545,169 | 19,100,302 | 19,278,683 |
- Borrowed funds totaled $2.41 billion as of June 30, 2026, compared to $2.11 billion as of December 31, 2025. The increase in borrowed funds was largely used to fund asset growth and seasonal outflows in municipal deposits. Borrowed funds represented 9.4% of total assets as of June 30, 2026, an increase from 8.5% as of December 31, 2025.
- Stockholders’ equity totaled $2.91 billion compared to $2.83 billion as of December 31, 2025, primarily due to net income earned for the period, partially offset by cash dividends paid to stockholders and an increase in unrealized losses on available for sale debt securities.
- For the three and six months ended June 30, 2026, common stock repurchases totaled 25,799 shares at an average cost of $22.15 per share and 614,722 shares at an average cost of $21.09 per share, respectively. As of June 30, 2026, approximately 2,199,471 shares remained eligible for repurchase under the current stock repurchase authorization.
- Book value per share and TBV per share as of June 30, 2026 were $22.29 and $16.42, respectively, compared with $21.69 and $15.70, respectively, as of December 31, 2025.
Asset Quality:
- The Company’s total non-performing loans as of June 30, 2026 were $136.9 million, or 0.68% of total loans held for investment, compared to $142.9 million, or 0.73% of total loans as of March 31, 2026 and $78.4 million, or 0.40% of total loans as of December 31, 2025. The allowance for credit losses on loans represented 134.87% of non-performing loans, compared to 235.61% at December 31, 2025, and 175.32% at June 30, 2025.
- As of June 30, 2026, impaired loans totaled $121.2 million with related specific reserves of $3.8 million, compared with impaired loans totaling $128.4 million with related specific reserves of $1.6 million as of March 31, 2026. As of December 31, 2025, impaired loans totaled $63.3 million with related specific reserves of $5.9 million.
- As of June 30, 2026, the Company’s allowance for credit losses related to the loan portfolio was 0.92% of total loans, compared to 0.90% and 0.95% as of March 31, 2026 and December 31, 2025, respectively. The allowance for credit losses decreased $111,000 to $184.7 million as of June 30, 2026, from $184.8 million as of December 31, 2025. The decrease in the allowance for credit losses on loans as of June 30, 2026 compared to December 31, 2025 was due to net charge-offs of $5.0 million, partially offset by a $4.9 million provision for credit losses on loans.
The following table sets forth accruing past due loans and non-accrual loans held for investment on the dates indicated, as well as delinquency statistics and certain asset quality ratios.
| June 30, 2026 | March 31, 2026 | December 31, 2025 |
|---|
| Number of Loans | Principal Balance of Loans | Number of Loans | Principal Balance of Loans | Number of Loans | Principal Balance of Loans |
|---|
| (Dollars in thousands) |
|---|
| Accruing past due loans: | | | | | | |
| 30 to 59 days past due: | | | | | | |
| Commercial mortgage loans | 3 | $2,301 | 4 | $2,665 | 8 | $15,652 |
| Multi-family mortgage loans | 1 | 1,570 | 1 | 694 | - | - |
| Construction loans | - | - | 1 | 6,639 | - | - |
| Residential mortgage loans | 27 | 6,393 | 25 | 5,123 | 34 | 8,344 |
| Total mortgage loans | 31 | 10,264 | 31 | 15,121 | 42 | 23,996 |
| Commercial loans | 5 | 1,474 | 22 | 10,359 | 9 | 1,303 |
| Consumer loans | 31 | 1,401 | 42 | 3,588 | 49 | 2,209 |
| Total 30 to 59 days past due | 67 | $13,139 | 95 | $29,068 | 100 | $27,508 |
| 60 to 89 days past due: | | | | | | |
| Commercial mortgage loans | - | $ - | - | $ - | - | $ - |
| Multi-family mortgage loans | - | - | - | - | 1 | 932 |
| Construction loans | - | - | - | - | - | - |
| Residential mortgage loans | 20 | 5,929 | 22 | 6,893 | 16 | 4,177 |
| Total mortgage loans | 20 | 5,929 | 22 | 6,893 | 17 | 5,109 |
| Commercial loans | 4 | 828 | 6 | 2,520 | 3 | 633 |
| Consumer loans | 13 | 1,577 | 12 | 634 | 14 | 781 |
| Total 60 to 89 days past due | 37 | 8,334 | 40 | 10,047 | 34 | 6,523 |
| Total accruing past due loans | 104 | $21,473 | 135 | $39,115 | 134 | $34,031 |
| Non-accrual: | | | | | | |
| Commercial mortgage loans | 8 | $21,338 | 9 | $21,977 | 11 | $26,856 |
| Multi-family mortgage loans | 1 | 266 | 1 | 275 | 3 | 2,268 |
| Construction loans | 1 | 2,854 | 1 | 3,278 | 1 | 5,159 |
| Residential mortgage loans | 32 | 7,834 | 27 | 8,669 | 32 | 9,062 |
| Total mortgage loans | 42 | 32,292 | 38 | 34,199 | 47 | 43,345 |
| Commercial loans | 71 | 103,383 | 41 | 107,398 | 28 | 33,219 |
| Consumer loans | 17 | 1,210 | 23 | 1,327 | 27 | 1,856 |
| Total non-accrual loans | 130 | $136,885 | 102 | $142,924 | 102 | $78,420 |
| Non-performing loans to total loans held for investment | | 0.68% | | 0.73% | | 0.40% |
| Allowance for loan losses to total non-performing loans | | 134.87% | | 123.84% | | 235.61% |
| Allowance for loan losses to total loans | | 0.92% | | 0.90% | | 0.95% |
As of June 30, 2026 and December 31, 2025, the Company held foreclosed assets of $1.0 million and $2.0 million, respectively. Foreclosed assets as of June 30, 2026 was comprised of one commercial real estate property. Total non-performing assets at June 30, 2026 increased $57.4 million to $137.9 million, or 0.54% of total assets, from $80.4 million, or 0.32% of total assets at December 31, 2025.
Results of Operations
Second quarter of 2026 compared to the first quarter of 2026:
Net interest income
- Net interest income was $202.7 million, compared to $193.7 million. The increase was primarily due to originations of new loans at current market rates and the favorable repricing of adjustable rate loans.
- Net interest margin was 3.48%, compared to 3.40%. The yield on interest-earning assets increased 8 basis points to 5.61%, while the cost of interest-bearing liabilities remained at 2.71%. The cost of total deposits, which includes non-interest bearing deposits, was 1.92%, compared to 1.94%.
- Average loans totaled $19.57 billion, an increase of $214.7 million, or 4.44%, primarily due to strong commercial loan growth in the quarter.
- Average total deposits totaled $19.23 billion compared to $19.24 billion.
Provision for credit losses
- The provision for credit losses was $9.3 million, compared to a $2.1 million recapture of previous provisions for credit losses in the prior quarter. The provision for credit losses in the second quarter consisted of a $9.6 million provision related to loans, partially offset by a $0.2 million recapture of provision related to off-balance sheet credit exposures, compared with a $4.7 million recapture of provision for credit losses on loans, partially offset by a $2.5 million provision related to off-balance sheet credit exposures for the prior quarter. The increase in the provision for credit losses was primarily due to overall growth in the loan portfolio, combined with an increase in specific reserves on individually evaluated loans.
- Net charge-offs were $1.9 million, compared to $3.1 million in the prior quarter, while the ratio of net charge-offs to average loans was 0.04%, compared to 0.06% in the prior quarter.
Non-interest income and non-interest expense
- Total non-interest income was $32.0 million, compared to $31.5 million, an increase of $0.5 million. The increase was primarily driven by a $1.8 million increase in fee income, partially offset by a $1.4 million decrease in insurance agency income. The increase in fee income was primarily related to increases in loan related fee income and deposit fee income. The decrease in insurance agency income was mainly due to the receipt of contingent commissions in the prior quarter.
- Total non-interest expense was $119.3 million, compared to $117.1 million, an increase of $2.1 million. The increase was mainly due to $1.5 million related to costs associated with our ongoing core system conversion, combined with an increase in severance expense.
- The Company’s annualized core non-interest expense as a percentage of average assets totaled 1.85% for the quarter ended June 30, 2026, compared to 1.90% for the trailing quarter. The core efficiency ratio (core non-interest expense divided by the sum of net interest income and core non-interest income)was 49.75% for the three months ended June 30, 2026, compared to 52.02% for the trailing quarter.
Income tax expense
Income tax expense was $27.9 million, compared to $30.8 million, and the effective tax rate was 26.3%, compared to 27.9%. The decrease in income tax expense was primarily related to a decrease in pre-tax book income, combined with discrete items related to benefits associated with carry-back tax credits, partially offset by the effects of recent legislation adopted by New Jersey with regard to net operating loss usage. The effective tax rate change was primarily related to the aforementioned discrete items.
Second quarter of 2026 compared to the second quarter of 2025:
Net interest income
- Net interest income was $202.7 million, compared to $187.1 million. The increase was primarily due to originations of new loans at current market rates, combined with favorable repricing of deposits.
- Net interest margin was 3.48%, compared to 3.36%. The yield on interest-earning assets decreased seven basis points to 5.61%, while the cost of interest-bearing liabilities decreased 23 basis points to
2.71%. The cost of total deposits, which includes non-interest bearing deposits, was 1.92%, compared to 2.10%.
- Average loans totaled $19.57 billion, an increase of $742.0 million, or 3.94%, primarily due to strong loan growth in the quarter.
- Average total deposits totaled $19.23 billion, an increase of $807.8 million, or 4.39%.
Provision for credit losses
- The provision for credit losses was $9.3 million, compared to a $2.9 million recapture of previous provisions for credit losses for the same period last year. The provision for credit losses in the second quarter consisted of a $9.6 million provision related to loans, partially offset by a $0.2 million recapture of provision related to off-balance sheet credit exposures, compared with a $2.7 million and a $0.2 million recapture of provision for credit losses on loans and off-balance sheet credit exposures for the same period last year. The increase in the provision for credit losses was primarily due to overall growth in the loan portfolio, combined with an increase in specific reserves on individually evaluated loans.
- Net charge-offs were $1.9 million, compared to $1.2 million a year ago, while the ratio of net charge-offs to average loans was 0.04%, compared to 0.03% a year ago.
Non-interest income and non-interest expense
- Total non-interest income was $32.0 million, compared to $27.1 million, an increase of $4.9 million. The increase was primarily driven by a $1.5 million increase in fee income, a $1.2 million increase in BOLI income and a $1.1 million increase in other non-interest income. The increase in fee income was primarily related to an increase in loan related fee income. The increase in BOLI income was primarily related to an increase in benefit claims, while the increase in other non-interest income was mainly due to an increase in swap fee income.
- Total non-interest expense was $119.3 million, compared to $114.6 million, an increase of $4.6 million. The increase was primarily driven by a $4.0 million increase in compensation and benefits expense, partially due to an increase in severance expense, and $1.5 million related to costs associated with our ongoing core system conversion, partially offset by a $0.9 million decrease in amortization of intangibles primarily due to a scheduled reduction in the rate of core deposit intangible amortization related to the merger with Lakeland.
- The Company’s annualized core non-interest expense as a percentage of average assets totaled 1.85% for the quarter ended June 30, 2026, compared to 1.89% for the same period last year. The core efficiency ratio (core non-interest expense divided by the sum of net interest income and core non-interest income)was 49.75% for the three months ended June 30, 2026, compared to 53.52% for the same period last year.
Income tax expense
- Income tax expense was $27.9 million, compared to $30.5 million, and the effective tax rate was 26.3%, compared to 29.7%. The decrease in income tax expense and the effective tax rate was primarily related to discrete items related to benefits associated with carry-back tax credits and purchases of current year tax credits, partially offset by effects of recently adopted New Jersey legislation with regard to net operating loss usage.
About the Company
Provident Financial Services, Inc. is the holding company for Provident Bank, a community-oriented bank offering "Commitment you can count on" since 1839. Provident Bank provides a comprehensive array of financial products and services through its network of branches throughout New Jersey, Bucks, Lehigh and Northampton counties in Pennsylvania, as well as Orange, Queens and Nassau Counties in New York. The Bank also provides fiduciary and wealth management services through its wholly owned subsidiary, Beacon Trust Company and insurance services through its wholly owned subsidiary, Provident Protection Plus, Inc.
Post Earnings Conference Call
Representatives of the Company will hold a conference call for investors on Thursday, July 30, 2026 at 10:00 a.m. Eastern Time to discuss the Company’s financial results for the quarter ended June 30, 2026. The call may be accessed by dialing 1-833-461-5787 (United States Toll Free) and 1-626-884-3620 (United States Local). Speakers will need to enter meeting ID code (216 708 612) before being met by a live operator. Internet access to the call is also available (listen only) at provident.bank by going to Investor Relations and clicking on "Webcast."
A supplemental 2nd Quarter 2026 results investor presentation is also available on our investor relations website under “Presentations.”
Forward Looking Statements
Forward-looking statements notice
Certain statements contained herein are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” "project," "intend," “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those set forth in Item 1A of the Company's Annual Report on Form 10-K, as supplemented by its Quarterly Reports on Form 10-Q, and those related to the economic environment, particularly in the market areas in which the Company operates, inflation and unemployment, competitive products and pricing, real estate values, fiscal and monetary policies of the U.S. Government, tariffs, changes in accounting policies and practices that may be adopted by the regulatory agencies and the accounting standards setters, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, potential goodwill impairment, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets and the availability of and costs associated with sources of liquidity.
The Company cautions readers not to place undue reliance on any such forward-looking statements which speak only as of the date they are made. The Company advises readers that the factors listed above could affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not assume any duty, and does not undertake, to update any forward-looking statements to reflect events or circumstances after the date of this statement.
Non-GAAP Financial Measures
Core net income, pre-provision, net-revenue annualized core return on average assets, annualized return on average tangible equity, tangible common equity capital ratio, tangible book value per share, annualized core non-interest expense as a percentage of average assets and the core efficiency ratio are non-GAAP financial measures. Please refer to the Notes following the Consolidated Financial Highlights which contain the reconciliation of GAAP to non-GAAP financial measures and the associated calculations.
| PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY | |
| Consolidated Statements of Financial Condition | |
| June 30, 2026 (Unaudited) and December 31, 2025 | |
| (Dollars in Thousands) | |
| Assets | June 30, 2026 | December 31, 2025 |
| Cash and cash equivalents | $228,293 | $211,484 |
| Available for sale debt securities, at fair value | 3,286,456 | 3,164,756 |
| Held to maturity debt securities, (net of $22,000 allowance as of June 30, 2026 (unaudited) and $16,000 allowance as of December 31, 2025) | 266,224 | 282,127 |
| Equity securities, at fair value | 20,108 | 19,875 |
| Federal Home Loan Bank stock | 130,672 | 115,687 |
| Loans held for sale | 5,478 | 14,710 |
| Loans held for investment | 20,045,752 | 19,504,061 |
| Less allowance for credit losses | 184,656 | 184,767 |
| Net loans | 19,866,574 | 19,334,004 |
| Foreclosed assets, net | 963 | 2,015 |
| Banking premises and equipment, net | 112,197 | 113,328 |
| Accrued interest receivable | 98,118 | 95,798 |
| Intangible assets | 765,019 | 782,152 |
| Bank-owned life insurance | 415,256 | 414,371 |
| Other assets | 473,478 | 445,113 |
| Total assets | $25,663,358 | $24,980,710 |
| Liabilities and Stockholders' Equity | | |
| Deposits: | | |
| Demand deposits | $14,518,916 | $14,402,148 |
| Savings deposits | 1,582,750 | 1,589,259 |
| Certificates of deposit of $250,000 or more | 965,698 | 929,989 |
| Other time deposits | 2,477,805 | 2,357,287 |
| Total deposits | 19,545,169 | 19,278,683 |
| Mortgage escrow deposits | 47,779 | 40,253 |
| Borrowed funds | 2,407,532 | 2,111,955 |
| Subordinated debentures | 409,065 | 406,582 |
| Other liabilities | 346,828 | 310,025 |
| Total liabilities | 22,756,373 | 22,147,498 |
| Stockholders' equity: | | |
| Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued | - | - |
| Common stock, $0.01 par value, 200,000,000 shares authorized, 137,565,966 shares issued and 130,423,051 shares outstanding as of June 30, 2026 and 130,619,949 outstanding as of December 31, 2025 | 1,376 | 1,376 |
| Additional paid-in capital | 1,850,121 | 1,844,949 |
| Retained earnings | 1,250,204 | 1,154,364 |
| Accumulated other comprehensive loss | (91,933) | (76,183) |
| Treasury stock | (102,783) | (91,294) |
| Total stockholders' equity | 2,906,985 | 2,833,212 |
| Total liabilities and stockholders' equity | $25,663,358 | $24,980,710 |
| Three Months Ended | Six Months Ended |
|---|
| June 30, | March 31, | June 30, | June 30, | June 30, |
|---|
| 2026 | 2026 | 2025 | 2026 | 2025 |
|---|
| PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY |
| Consolidated Statements of Income |
| Three months ended June 30, 2026, March 31, 2026 and June 30, 2025, and six months ended June 30, 2026 and 2025 (Unaudited) |
| (Dollars in Thousands, except per share data) |
| Interest and dividend income: | | | | | |
| Real estate secured loans | $195,381 | | $191,503 | | $192,792 | | $386,884 | | $379,845 | |
| Commercial loans | 82,757 | | 77,901 | | 78,854 | | 160,658 | | 154,673 | |
| Consumer loans | 9,953 | | 9,900 | | 10,464 | | 19,852 | | 20,623 | |
| Available for sale debt securities, equity securities and Federal Home Loan Bank stock | 35,975 | | 33,282 | | 31,444 | | 69,258 | | 61,088 | |
| Held to maturity debt securities | 1,778 | | 1,794 | | 1,966 | | 3,572 | | 3,962 | |
| Deposits, federal funds sold and other short-term investments | 751 | | 686 | | 788 | | 1,437 | | 1,463 | |
| Total interest income | 326,595 | | 315,066 | | 316,308 | | 641,661 | | 621,654 | |
| Interest expense: | | | | | |
| Deposits | 91,803 | | 91,936 | | 96,257 | | 183,739 | | 193,678 | |
| Borrowed funds | 23,730 | | 21,011 | | 24,470 | | 44,741 | | 42,247 | |
| Subordinated debt | 8,382 | | 8,376 | | 8,487 | | 16,758 | | 16,907 | |
| Total interest expense | 123,915 | | 121,323 | | 129,214 | | 245,238 | | 252,832 | |
| Net interest income | 202,680 | | 193,743 | | 187,094 | | 396,423 | | 368,822 | |
| Provision for credit losses | 9,334 | | (2,116) | | (2,888) | | 7,218 | | (2,250) | |
| Net interest income after provision for credit losses | 193,346 | | 195,859 | | 189,982 | | 389,205 | | 371,072 | |
| Non-interest income: | | | | | |
| Fees | 12,259 | | 10,464 | | 10,736 | | 22,722 | | 20,391 | |
| Wealth management income | 7,517 | | 7,402 | | 6,948 | | 14,920 | | 14,275 | |
| Insurance agency income | 5,446 | | 6,850 | | 4,942 | | 12,296 | | 10,593 | |
| Bank-owned life insurance | 3,798 | | 4,034 | | 2,585 | | 7,833 | | 4,678 | |
| Net (loss) gain on securities transactions | (309) | | - | | - | | (309) | | 87 | |
| Gain on sale of SBA loans | 945 | | 745 | | 647 | | 1,690 | | 1,310 | |
| Other income | 2,317 | | 1,958 | | 1,217 | | 4,275 | | 2,771 | |
| Total non-interest income | 31,973 | | 31,453 | | 27,075 | | 63,427 | | 54,105 | |
| Non-interest expense: | | | | | |
| Compensation and employee benefits | 67,289 | | 66,196 | | 63,249 | | 133,485 | | 125,615 | |
| Net occupancy expense | 12,464 | | 14,985 | | 13,011 | | 27,449 | | 26,938 | |
| Data processing expense | 9,388 | | 9,646 | | 9,599 | | 19,034 | | 19,203 | |
| FDIC Insurance | 3,155 | | 2,841 | | 3,341 | | 5,995 | | 6,727 | |
| Amortization of intangibles | 8,559 | | 8,563 | | 9,497 | | 17,122 | | 18,998 | |
| Advertising and promotion expense | 1,513 | | 938 | | 1,429 | | 2,451 | | 2,489 | |
| Core systems conversion expense | 1,508 | | - | | - | | 1,508 | | - | |
| Other operating expenses | 15,382 | | 13,972 | | 14,488 | | 29,355 | | 30,911 | |
| Total non-interest expense | 119,258 | | 117,141 | | 114,614 | | 236,399 | | 230,881 | |
| Net income before income tax expense | 106,061 | | 110,171 | | 102,443 | | 216,233 | | 194,296 | |
| Income tax expense | 27,914 | | 30,754 | | 30,462 | | 58,668 | | 58,287 | |
| Net income | $78,147 | | $79,417 | | $71,981 | | $157,565 | | $136,009 | |
| Basic earnings per share | $0.60 | | $0.61 | | $0.55 | | $1.21 | | $1.04 | |
| Average basic shares outstanding | | 130,330,787 | | 130,511,676 | | 130,484,287 | | 130,421,508 | | 130,405,490 |
| Diluted earnings per share | $0.60 | | $0.61 | | $0.55 | | $1.21 | | $1.04 | |
| Average diluted shares outstanding | | 130,388,396 | | 130,588,635 | | 130,500,143 | | 130,488,792 | | 130,440,958 |
| June 30, 2026 | March 31, 2026 | June 30, 2025 |
|---|
| Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost | Average Balance | Interest | Average Yield/Cost |
|---|
| PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY |
| Net Interest Margin Analysis |
| Quarterly Average Balances |
| (Dollars in Thousands) (Unaudited) |
| Interest-Earning Assets: | | | | | | | | | |
| Deposits | $73,162 | | $751 | | 4.09% | $76,589 | | $686 | | 3.63% | $75,714 | | $788 | | 4.21% |
| Available for sale debt securities | | 3,272,868 | | 33,637 | 4.11% | | 3,217,568 | 31,458 | | 3.91% | | 2,958,325 | | 29,092 | 3.93% |
| Held to maturity debt securities, net | | 266,727 | | 1,778 | 2.67% | | 273,845 | 1,794 | | 2.62% | | 315,204 | | 1,966 | 2.49% |
| Equity securities, at fair value | 19,986 | | 123 | | 2.46% | 19,988 | | 120 | | 2.42% | 19,235 | | 214 | | 4.44% |
| Total securities | | 3,559,581 | | 35,538 | 3.99% | | 3,511,401 | | 33,372 | 3.80% | | 3,292,764 | | 31,272 | 3.80% |
| Federal Home Loan Bank stock | | 132,390 | | 2,215 | 6.62% | | 120,299 | | 1,704 | 5.67% | | 133,447 | | 2,138 | 6.44% |
| Net loans: | | | | | | | | | |
| Total mortgage loans | | 13,636,285 | | 195,381 | 5.75% | | 13,590,636 | | 191,503 | 5.70% | | 13,398,650 | | 192,792 | 5.77% |
| Total commercial loans | | 5,327,395 | | 82,757 | 6.23% | | 5,157,785 | | 77,901 | 6.13% | | 4,816,237 | | 78,854 | 6.57% |
| Total consumer loans | | 605,579 | | 9,953 | 6.59% | | 606,122 | | 9,900 | 6.62% | | 612,418 | | 10,464 | 6.85% |
| Total net loans | | 19,569,259 | | 288,091 | 5.90% | | 19,354,543 | | 279,304 | 5.85% | | 18,827,305 | | 282,110 | 6.01% |
| Total interest-earning assets | $23,334,392 | | $326,595 | | 5.61% | $23,062,832 | | $315,066 | | 5.53% | $22,329,230 | | $316,308 | | 5.68% |
| Non-Interest Earning Assets: | | | | | | | | | |
| Cash and due from banks | | 162,746 | | | | 171,092 | | | | 150,464 | | |
| Other assets | 1,800,478 | | | | 1,792,490 | | | | | 1,870,114 | | |
| Total assets | $25,297,616 | | | | $25,026,414 | | | | $24,349,808 | | | |
| Interest-Bearing Liabilities: | | | | | | | | | |
| Demand deposits | $10,674,922 | | $63,736 | | 2.39% | $10,759,045 | | $63,358 | | 2.39% | $9,874,149 | | $64,803 | | 2.63% |
| Savings deposits | | 1,599,622 | | 814 | 0.20% | | 1,606,554 | | 840 | 0.21% | | 1,647,746 | | 900 | 0.22% |
| Time deposits | | 3,236,519 | | 27,253 | 3.38% | | 3,230,961 | | 27,738 | 3.48% | | 3,197,374 | | 30,555 | 3.83% |
| Total deposits | | 15,511,063 | | 91,803 | 2.37% | | 15,596,560 | | 91,936 | 2.39% | | 14,719,269 | | 96,258 | 2.62% |
| Borrowed funds | | 2,435,404 | | 23,730 | 3.91% | | 2,184,719 | | 21,011 | 3.90% | | 2,490,379 | | 24,470 | 3.94% |
| Subordinated debentures | 408,260 | | 8,382 | | 8.23% | 407,019 | | 8,376 | | 8.35% | 403,286 | | 8,487 | | 8.44% |
| Total interest-bearing liabilities | | 18,354,727 | | 123,915 | 2.71% | | 18,188,298 | | 121,323 | 2.71% | | 17,612,934 | | 129,215 | 2.94% |
| Non-Interest Bearing Liabilities: | | | | | | | | | |
| Non-interest bearing deposits | | 3,716,104 | | | | 3,644,605 | | | | 3,700,132 | | |
| Other non-interest bearing liabilities | | 329,223 | | | | 320,398 | | | | 352,400 | | |
| Total non-interest bearing liabilities | | 4,045,327 | | | | 3,965,003 | | | | 4,052,532 | | |
| Total liabilities | | 22,400,054 | | | | 22,153,301 | | | | 21,665,466 | | |
| Stockholders' equity | | 2,897,562 | | | | 2,873,113 | | | | 2,684,342 | | |
| Total liabilities and stockholders' equity | $25,297,616 | | | | $25,026,414 | | | | $24,349,808 | | | |
| Net interest income | | $202,680 | | | | $193,743 | | | | $187,093 | | |
| Net interest rate spread | | | 2.90% | | | 2.82% | | | 2.74% |
| Net interest-earning assets | $4,979,665 | | | | $4,874,534 | | | | $4,716,296 | | | |
| Net interest margin | | | 3.48% | | | 3.40% | | | 3.36% |
| Ratio of interest-earning assets to total interest-bearing liabilities | | 1.27x | | | | 1.27x | | | | 1.27x | | |
- Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses.
- Average outstanding balances are net of the allowance for loan losses, deferred loan fees and expenses, loan premiums and discounts and include non-accrual loans.
- Annualized net interest income divided by average interest-earning assets.
| 6/30/26 | 3/31/26 | 12/31/25 | 9/30/25 | 6/30/25 |
|---|
| 2nd Qtr. | 1st Qtr. | 4th Qtr. | 3rd Qtr. | 2nd Qtr. |
|---|
| The following table summarizes the quarterly net interest margin for the previous five quarters. | | |
| Interest-Earning Assets: | | | | | |
| Securities | 3.99% | | 3.80% | | 3.87% | | 3.89% | | 3.81% | |
| Net loans | 5.90% | | 5.85% | | 5.98% | | 6.09% | | 6.01% | |
| Total interest-earning assets | 5.61% | | 5.53% | | 5.66% | | 5.76% | | 5.68% | |
| Interest-Bearing Liabilities: | | | | | |
| Deposits | 2.37% | | 2.39% | | 2.60% | | 2.67% | | 2.62% | |
| Borrowings | 3.91% | | 3.90% | | 3.94% | | 3.96% | | 3.94% | |
| Total interest-bearing liabilities | 2.71% | | 2.71% | | 2.83% | | 2.96% | | 2.94% | |
| Interest rate spread | 2.90% | | 2.82% | | 2.83% | | 2.80% | | 2.74% | |
| Net interest margin | 3.48% | | 3.40% | | 3.44% | | 3.43% | | 3.36% | |
| Ratio of interest-earning assets to interest-bearing liabilities | | 1.27x | | 1.27x | | 1.28x | | 1.27x | | 1.27x |
| June 30, 2026 | June 30, 2025 |
|---|
| Average | | Average | Average | | Average |
|---|
| Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost |
|---|
| PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY |
| Net Interest Margin Analysis |
| Average Year to Date Balances |
| (Dollars in Thousands) (Unaudited) |
| Interest-Earning Assets: | | | | | | |
| Deposits | $74,866 | | $1,437 | 3.87% | $77,882 | | $1,463 | 4.21% |
| Available for sale debt securities | 3,245,371 | | 65,095 | 4.01% | 2,893,373 | | 56,505 | 3.91% |
| Held to maturity debt securities, net | 270,266 | | 3,572 | 2.64% | 317,607 | | 3,962 | 2.50% |
| Equity securities, at fair value | 19,987 | | 244 | 2.44% | 19,212 | | 422 | 3.01% |
| Total securities | 3,535,624 | | 68,911 | 3.90% | 3,230,192 | | 60,889 | 3.75% |
| Federal Home Loan Bank stock | 126,378 | | 3,919 | 12.41% | 120,883 | | 4,161 | 6.92% |
| Net loans: | | | | | | |
| Total mortgage loans | 13,615,283 | | 386,884 | 5.72% | 13,351,451 | | 379,845 | 5.73% |
| Total commercial loans | 5,241,339 | | 160,658 | 6.18% | 4,747,564 | | 154,673 | 6.57% |
| Total consumer loans | 605,872 | | 19,852 | 6.61% | 610,728 | | 20,623 | 6.81% |
| Total net loans | 19,462,494 | | 567,394 | 5.87% | 18,709,743 | | 555,141 | 5.98% |
| Total interest-earning assets | $23,199,362 | | $641,661 | 5.60% | $22,138,700 | | $621,654 | 5.65% |
| Non-Interest Earning Assets: | | | | | | |
| Cash and due from banks | 166,896 | | | | 142,380 | | | |
| Other assets | 1,796,506 | | | | 1,919,313 | | | |
| Total assets | $25,162,764 | | | | $24,200,393 | | | |
| Interest-Bearing Liabilities: | | | | | | |
| Demand deposits | $10,716,751 | | $127,095 | 2.39% | $9,984,248 | | $130,235 | 2.63% |
| Savings deposits | 1,603,069 | | 1,653 | 0.21% | 1,665,075 | | 1,824 | 0.22% |
| Time deposits | 3,233,756 | | 54,991 | 3.43% | 3,198,491 | | 61,618 | 3.88% |
| Total deposits | 15,553,576 | | 183,739 | 2.38% | 14,847,814 | | 193,677 | 2.63% |
| Borrowed funds | 2,310,754 | | 44,741 | 3.90% | 2,205,805 | | 42,247 | 3.86% |
| Subordinated debentures | 407,643 | | 16,758 | 8.29% | 402,665 | | 16,907 | 8.47% |
| Total interest-bearing liabilities | $18,271,973 | | $245,238 | 2.71% | $17,456,284 | | $252,831 | 2.92% |
| Non-Interest Bearing Liabilities: | | | | | | |
| Non-interest bearing deposits | 3,680,552 | | | | 3,709,602 | | | |
| Other non-interest bearing liabilities | 324,834 | | | | 373,029 | | | |
| Total non-interest bearing liabilities | 4,005,386 | | | | 4,082,631 | | | |
| Total liabilities | 22,277,359 | | | | 21,538,915 | | | |
| Stockholders' equity | 2,885,405 | | | | 2,661,478 | | | |
| Total liabilities and stockholders' equity | $25,162,764 | | | | $24,200,393 | | | |
| Net interest income | | $396,423 | | | $368,823 | |
| Net interest rate spread | | | 2.89% | | | 2.73% |
| Net interest-earning assets | $4,927,389 | | | | $4,682,416 | | | |
| Net interest margin | | | 3.47% | | | 3.35% |
| Ratio of interest-earning assets to total interest-bearing liabilities | | 1.27x | | | | 1.27x | | |
- Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses.
- Average outstanding balances are net of the allowance for loan losses, deferred loan fees and expenses, loan premiums and discounts and include loans held for sale and non-accrual loans.
- Annualized net interest income divided by average interest-earning assets.
| Six Months Ended |
|---|
| June 30, 2026 | June 30, 2025 | June 30, 2024 |
|---|
| The following table summarizes the year-to-date net interest margin for the previous three years. |
| Interest-Earning Assets: | | | |
| Securities | 3.90% | | 3.75% | | 2.78% | |
| Net loans | 5.87% | | 5.98% | | 5.83% | |
| Total interest-earning assets | 5.60% | | 5.65% | | 5.43% | |
| Interest-Bearing Liabilities: | | | |
| Deposits | 2.38% | | 2.63% | | 2.74% | |
| Borrowings | 3.90% | | 3.86% | | 3.75% | |
| Total interest-bearing liabilities | 2.71% | | 2.92% | | 2.97% | |
| Interest rate spread | 2.89% | | 2.73% | | 2.46% | |
| Net interest margin | 3.47% | | 3.35% | | 3.08% | |
| Ratio of interest-earning assets to interest-bearing liabilities | | 1.27x | | 1.27x | | 1.26x |
Notes and Reconciliation of GAAP and Non-GAAP Financial Measures
(Dollars in Thousands, except share data)
The Company has presented the following non-GAAP (U.S. Generally Accepted Accounting Principles) financial measures because it believes that these measures provide useful and comparative information to assess trends in the Company’s results of operations and financial condition. Presentation of these non-GAAP financial measures is consistent with how the Company evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Company’s industry. Investors should recognize that the Company’s presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and the Company strongly encourages a review of its condensed consolidated financial statements in their entirety.
| Three months Ended | Six months Ended | | | | |
|---|
| June 30, | June 30, | | | | |
|---|
| 2026 | 2026 | | | | |
|---|
| (1) Core Net Income | | | | | | |
| Net interest income | $202,680 | | $396,423 | | | | | |
| Provision for loan losses | 9,334 | | 7,218 | | | | | |
| Net interest income after provision for loan losses | $193,346 | | $389,205 | | | | | |
| Non-interest income | 31,973 | | 63,427 | | | | | |
| Non-interest expense | $119,258 | | $236,399 | | | | | |
| Executive severance expense | 864 | | 864 | | | | | |
| Core system conversion expense | 1,508 | | 1508 | | | | | |
| Core non-interest expense | $116,886 | | $234,027 | | | | | |
| Income taxes | 27,914 | | 58,668 | | | | | |
| Income tax of non-core items | 663 | | 663 | | | | | |
| Core net income | $79,856 | | $159,274 | | | | | |
| Avg. diluted shares outstanding for the 3 and 6 months ended June 30, 2026 | 130,388,396 | | 130,488,792 | | | | | |
| Core diluted earnings per share | $0.61 | | $1.22 | | | | | |
| (2) Annualized core pre-provision net revenue ("PPNR") returns on average assets, average equity and average tangible equity | | | | | | |
| Three Months Ended |
| June 30, | March 31, | | December 31, | September 30, | June 30, |
| | 2026 | | 2026 | | | 2025 | | 2025 | | 2025 |
| Net income | $78,147 | | $79,417 | | | $83,431 | | $71,720 | | $71,981 | |
| Adjustments to net income: | | | | | | |
| Provision for credit losses | 9,334 | | (2,116) | | | (1,213) | | 7,044 | | (2,888) | |
| Write-down on ORE property | - | | - | | | - | | - | | - | |
| Executive severance expense | 864 | | - | | | - | | - | | - | |
| Core system conversion expense | 1,508 | | - | | | - | | - | | - | |
| Income tax expense | 27,914 | | 30,754 | | | 28,814 | | 29,895 | | 30,462 | |
| Core PPNR | $117,767 | | $108,055 | | | $111,032 | | $108,659 | | $99,555 | |
| Annualized core PPNR income | $472,362 | | $438,223 | | | $440,507 | | $431,093 | | $399,314 | |
| Core diluted earnings per share | $130,388,396 | | $130,588,635 | | $74,702,527 | $130,589,271 | | $130,553,819 | | $130,500,143 | |
| Core PPNR Diluted EPS | $0.90 | | $0.83 | | | $0.85 | | $0.83 | | $0.76 | |
| Average assets | $25,297,616 | | $25,026,414 | | | $24,775,214 | | $24,518,290 | | $24,349,808 | |
| Average equity | $2,897,562 | | $2,873,113 | | | $2,810,166 | | $2,738,414 | | $2,684,342 | |
| Average tangible equity | $2,126,989 | | $2,093,975 | | | $2,022,451 | | $1,941,625 | | $1,877,923 | |
| Annualized core PPNR return on average assets | 1.87% | | 1.75% | | | 1.78% | | 1.76% | | 1.64% | |
| Annualized core PPNR return on average equity | 16.30% | | 15.25% | | | 15.68% | | 15.74% | | 14.88% | |
| Annualized core PPNR return on average tangible equity | 22.21% | | 20.93% | | | 21.78% | | 22.20% | | 21.26% | |
| For the Quarter Ended |
|---|
| June 30, | March 31, | December 31, | September 30, | June 30, |
|---|
| 2026 | 2026 | 2025 | 2025 | 2025 |
|---|
| (3) Annualized Core Return on Average Assets, Average Equity and Average Tangible Equity | | | | | |
| Net Income | $78,147 | | $79,417 | | 83,431 | | 71,720 | | $71,981 | |
| Executive severance expense | 864 | | - | | - | | - | | - | |
| Core system conversion expense | 1,508 | | - | | - | | - | | - | |
| Less: income tax expense | (663) | | - | | - | | - | | - | |
| Annualized core net income | $79,856 | | 79,417 | | 83,431 | | 71,720 | | 71,981 | |
| Plus: Amortization of Intangibles (net of tax) | 6,167 | | 6,170 | | 6,180 | | 6,639 | | 6,639 | |
| Annualized core net income for annualized core return on average tangible equity | $86,023 | | $85,587 | | $89,611 | | $78,359 | | $78,620 | |
| Average assets | $25,297,616 | | $25,026,414 | | $24,775,214 | | $24,518,290 | | $24,349,808 | |
| Average equity | $2,897,562 | | $2,873,113 | | $2,810,166 | | $2,738,414 | | $2,684,342 | |
| Average tangible equity | $2,126,989 | | $2,093,975 | | $2,022,451 | | $1,941,625 | | $1,877,923 | |
| Annualized Core Return on Average Assets | 1.27% | | 1.29% | | 1.34% | | 1.16% | | 1.19% | |
| Annualized Core Return on Average Equity | 11.05% | | 11.21% | | 11.78% | | 10.39% | | 10.76% | |
| Annualized Core Return on Average Tangible Equity | 16.22% | | 16.58% | | 17.58% | | 16.01% | | 16.79% | |
| (4) Tangible Common Equity Ratio, Book and Tangible Book Value per Share | |
| Three Months Ended |
| June 30, | March 31, | December 31, | September 30, | June 30, |
| | 2026 | | 2026 | | 2025 | | 2025 | | 2025 |
| Total assets | $25,663,358 | | $25,201,690 | | $24,980,710 | | $24,832,763 | | $24,547,286 | |
| Less: total intangible assets | 765,019 | | 773,585 | | 782,152 | | 790,729 | | 800,232 | |
| Total tangible assets | $24,898,339 | | | $24,428,105 | | $24,198,558 | | $24,042,034 | | $23,747,054 |
| Total stockholders' equity | $2,906,985 | | $2,862,869 | | $2,833,212 | | $2,767,035 | | $2,707,555 | |
| Less: total intangible assets | 765,019 | | 773,585 | | 782,152 | | 790,729 | | 800,232 | |
| Total tangible stockholders' equity | $2,141,966 | | $2,089,284 | | $2,051,060 | | $1,976,306 | | $1,907,323 | |
| Tangible common equity ratio | 8.60% | | 8.55% | | 8.48% | | 8.22% | | 8.03% | |
| Shares outstanding | 130,423,051 | | $130,311,796 | | $130,619,949 | | $130,621,757 | | $130,624,243 | |
| Book value per share (total stockholders' equity/shares outstanding) | $22.29 | | $21.97 | | $21.69 | | $21.18 | | $20.73 | |
| Tangible book value per share (total tangible stockholders' equity/shares outstanding) | $16.42 | | $16.03 | | $15.70 | | $15.13 | | $14.60 | |
| (5) Annualized Return on Average Tangible Equity | | | | | |
| Three Months Ended |
| June 30, | March 31, | December 31, | September 30, | June 30, |
| | 2026 | | 2026 | | 2025 | | 2025 | | 2025 |
| Total average stockholders' equity | $2,897,562 | | $2,873,113 | | $2,810,166 | | $2,738,414 | | $2,684,342 | |
| Less: total average intangible assets | 770,573 | | 779,138 | | 787,715 | | 796,789 | | 806,419 | |
| Total average tangible stockholders' equity | $2,126,989 | | $2,093,975 | | $2,022,451 | | $1,941,625 | | $1,877,923 | |
| Net income | $78,147 | | $79,417 | | $83,431 | | $71,720 | | $71,981 | |
| Plus: Amortization of Intangibles, net of tax | 6,167 | | $6,170 | | $6,180 | | $6,639 | | $6,639 | |
| Total net income | $84,314 | | $85,587 | | $89,611 | | $78,359 | | $78,620 | |
| Annualized return on average tangible equity (net income/total average tangible stockholders' equity) | 15.90% | | 16.58% | | 17.58% | | 16.01% | | 16.79% | |
| (6) Annualized Core Non-Interest Expense to Average Assets | | | | | |
| Three Months Ended |
|---|
| June 30, | March 31, | December 31, | September 30, | June 30, |
|---|
| 2026 | 2026 | 2025 | 2025 | 2025 |
|---|
| Reported non-interest expense | $119,258 | | $117,141 | | $114,690 | | $113,092 | | $114,614 | |
| Adjustments to non-interest expense: | | | | | |
| Executive severance expense | 864 | | - | | - | | - | | - | |
| Core system conversion expense | 1,508 | | - | | - | | - | | - | |
| Core non-interest expense | $116,886 | | $117,141 | | $114,690 | | $113,092 | | $114,614 | |
| Annualized core non-interest expense | $468,828 | | $475,072 | | $455,020 | | $448,680 | | $459,715 | |
| Average assets | $25,297,616 | | $25,026,414 | | $24,775,214 | | $24,518,290 | | $24,349,808 | |
| Annualized core non-interest expense/average assets | 1.85% | | 1.90% | | 1.84% | | 1.83% | | 1.89% | |
| (7) Core Efficiency Ratio Calculation | | | | | |
| Three Months Ended |
| June 30, | March 31, | December 31, | September 30, | June 30, |
| | 2026 | | 2026 | | 2025 | | 2025 | | 2025 |
| Net interest income | $202,680 | | $193,743 | | $197,411 | | $194,332 | | $187,094 | |
| Reported non-interest income | 31,973 | | 31,453 | | 28,311 | | 27,419 | | 27,075 | |
| Adjustments to non-interest income: | | | | | |
| Net (loss) gain on securities transactions | 309 | | - | | (690) | | (67) | | - | |
| Core non-interest income | 32,282 | | 31,453 | | 27,621 | | 27,352 | | 27,075 | |
| Total core income | $234,962 | | 225,196 | | 225,032 | | 221,684 | | 214,169 | |
| Core non-interest expense | $116,886 | | 117,141 | | 114,690 | | 113,092 | | 114,614 | |
| Core Efficiency ratio (core non-interest expense/core income) | 49.75% | | 52.02% | | 50.97% | | 51.01% | | 53.52% | |