Provident Financial Services, Inc. (PFS) SEC Filings & Earnings Calls

Subordinated debt issuance increases leverage and interest expense.

“Issuance of $600M in subordinated notes.”

CRE concentration risk

“We consider our commercial real estate loans to be higher risk categories in our loan portfolio. These loans are particularly sensitive to economic conditions.” · word for word

Non-performing loan spike

“Total non-performing loans were $136.9 million, or 0.68% of total loans as of June 30, 2026, compared to $78.4 million, or 0.40% of total loans as of December 31, 2025.” · word for word

Provision volatility

“The Company recorded a provision for credit losses on loans of $9.6 million and $4.9 million for the three and six months ended June 30, 2026, respectively, compared with a recapture of provisions totaling $2.7 million and $2.3 million for the three and six months ended June 30, 2025, respectively.” · word for word

No material risks identified; routine governance changes

“Standard director election and accounting officer appointment”

CRE concentration remains elevated at 399.7%, near regulatory threshold

“Adjusted CRE concentration ratio 399.7% as of June 30, 2026”

Net interest margin expansion may slow if deposit costs reprice higher or loan yields compress

“Average yield on earning assets declined from 5.68% to 5.61% YoY while cost of interest-bearing liabilities declined from 2.94% to 2.71%”

Transition in CFO role may introduce short-term uncertainty, but internal promotion mitigates risk.

“Mr. Duarte will continue to serve in his role as Chief Accounting Officer.” · word for word

CRE credit risk from senior housing

“The $64.5 million increase in non-performing loans as of March 31, 2026, compared to the trailing quarter, was primarily driven by the addition of four commercial loans on senior housing properties totaling $82.1 million that are the subject of related bankruptcy filings.” · word for word

Deposit outflow risk

“Total deposits decreased $178.4 million during the three months ended March 31, 2026, to $19.10 billion.” · word for word

Geographic concentration risk

“The Bank’s lending activities, though concentrated in the communities surrounding its offices, extend predominantly throughout New Jersey, eastern Pennsylvania and Queens, Nassau and Orange County, New York.” · word for word

Non-performing loans increased significantly due to senior housing loans in bankruptcy.

“NPLs increased to 0.73% from 0.40%; $82.1M in senior housing loans subject to bankruptcy; LTVs 32.9%-81.9%.”

Loan-to-deposit ratio elevated at 102.9%, indicating funding pressure.

“Loan-to-deposit ratio increased to 102.9% from 101.2%; seasonal municipal deposit outflows.”

CFO Retirement Transition Risk

“On January 13, 2026, Thomas M. Lyons notified Provident and Provident Bank (together the 'Company') that he intended to resign as Senior Executive Vice President and Chief Financial Officer effective the earlier of June 30, 2026 or the appointment of a successor (the 'Transition Date').” · word for word

Long-Term Incentive Underperformance

“Consequently 31.42% of the shares were released and vested.” · word for word

Concentration in Commercial Real Estate

“Mr. Hanson is a member of multiple entities that have commercial real estate loans and lines of credit with Provident Bank.” · word for word

Commercial Real Estate Concentration

“Commercial real estate loans were 38.3% of the total loan portfolio as of December 31, 2025.” · word for word

Rising Unemployment in Market Areas

“According to the U.S. Bureau of Labor Statistics, the preliminary unemployment rate in New Jersey was 5.4% as of December 31, 2025, an increase from 4.6% as of December 31, 2024.” · word for word

Interest Rate Risk

“The Bank manages its exposure to interest rate risk through the origination and retention of adjustable rate and shorter-term loans, and its investments in securities.” · word for word

Credit loss provision benefit may not be sustainable; allowance for credit losses decreased.

“Provision benefit of $1.2M; ACL ratio decreased to 0.95% from 0.97%.”

Loan-to-deposit ratio remains elevated at 101%, indicating reliance on wholesale funding.

“loan-to-deposit ratio down modestly to 101%” · word for word

Commercial real estate payoffs were significant in 2025, potentially indicating market softness.

“Pay-offs for the year were $1.3 billion and primarily occurred in CRE.” · word for word

Key executive departure could lead to temporary leadership gap or strategic shift; orderly transition mitigates risk.

“CFO retirement; nationwide search for successor; transition agreement in place.”

Credit quality deterioration

“Total non-performing loans were $100.4 million, or 0.52% of total loans as of September 30, 2025, compared to $72.1 million, or 0.39% of total loans as of December 31, 2024.” · word for word

Concentration in CRE loans

“As of September 30, 2025, our portfolio of commercial real estate loans, including multi-family and construction loans, totaled $11.57 billion, or 60.0% of total gross loans.” · word for word

Uninsured deposit exposure

“Our total estimated uninsured and uncollateralized deposits as of September 30, 2025, were $4.81 billion.” · word for word

Provision for credit losses increased to $7.0 million from a benefit of $2.9 million in prior quarter, indicating potential credit deterioration.

“Company recorded a $7.0 million provision for credit losses for Q3 2025, compared to a $2.9 million benefit in Q2 2025.” · word for word

Provision for credit losses increased to $7.0 million from a benefit of $2.9 million in prior quarter.

“Company recorded a $7.0 million provision for credit losses for Q3 2025, compared to a $2.9 million benefit in Q2 2025.” · word for word