PROVIDENT FINANCIAL SERVICES INC

For the period ended Mar 31, 2024. Filed Apr 26, 2024.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Mar 31, 2024 · Filed Apr 26, 2024

PFS$23.29+1.4%Stored close · as of Nov 9, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

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Contents

Item 1. Financial Statements:

Consolidated Statements of Financial Condition

March 31, 2024 (Unaudited) and December 31, 2023

	March 31, 2024	December 31, 2023
ASSETS
Cash and due from banks	$158,306	$180,241
Short-term investments	46	14
Total cash and cash equivalents	158,352	180,255
Available for sale debt securities, at fair value	1,666,306	1,690,112
Held to maturity debt securities, net (fair value of $341,459 as of March 31, 2024 and $352,601 as of December 31, 2023)	354,671	363,080
Equity securities, at fair value	1,341	1,270
Federal Home Loan Bank stock	77,750	79,217
Loans	10,842,707	10,873,701
Less allowance for credit losses	106,429	107,200
Net loans	10,736,278	10,766,501
Foreclosed assets, net	11,324	11,651
Banking premises and equipment, net	69,487	70,998
Accrued interest receivable	58,677	58,966
Intangible assets	457,239	457,942
Bank-owned life insurance	243,513	243,050
Other assets	295,980	287,768
Total assets	$14,130,918	$14,210,810
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Demand deposits	$7,905,961	$8,020,889
Savings deposits	1,160,951	1,175,683
Certificates of deposit of $250,000 or more	223,639	218,549
Other time deposits	808,341	877,393
Total deposits	10,098,892	10,292,514
Mortgage escrow deposits	43,881	36,838
Borrowed funds	2,058,098	1,970,033
Subordinated debentures	10,744	10,695
Other liabilities	224,141	210,134
Total liabilities	12,435,756	12,520,214
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, 83,209,012 shares issued and 75,928,193 shares outstanding as of March 31, 2024 and 75,537,186 outstanding as of December 31, 2023	832	832
Additional paid-in capital	990,582	989,058
Retained earnings	988,480	974,542
Accumulated other comprehensive loss	(151,585)	(141,115)
Treasury stock	(129,062)	(127,825)
Unallocated common stock held by the Employee Stock Ownership Plan	(4,085)	(4,896)
Common stock acquired by deferred compensation plans	(2,546)	(2,694)
Deferred compensation plans	2,546	2,694
Total stockholders’ equity	1,695,162	1,690,596
Total liabilities and stockholders’ equity	$14,130,918	$14,210,810

Consolidated Statements of Income

(Dollars in Thousands, except per share data)

	Three months ended March 31,
	2024	2023
Interest and dividend income:
Real estate secured loans	$107,456	$95,988
Commercial loans	36,100	28,683
Consumer loans	4,523	4,242
Available for sale debt securities, equity securities and Federal Home Loan Bank stock	12,330	11,430
Held to maturity debt securities	2,268	2,368
Deposits, Federal funds sold and other short-term investments	1,182	845
Total interest and dividend income	163,859	143,556
Interest expense:
Deposits	52,534	27,510
Borrowed funds	17,383	7,476
Subordinated debt	272	246
Total interest expense	70,189	35,232
Net interest income	93,670	108,324
Provision charge for credit losses	186	6,001
Net interest income after provision charge for credit losses	93,484	102,323
Non-interest income:
Fees	5,912	6,387
Wealth management income	7,488	6,915
Insurance agency income	4,793	4,102
Bank-owned life insurance	1,817	1,484
Net loss on securities transactions	(1)	(5)
Other income	798	3,269
Total non-interest income	20,807	22,152
Non-interest expense:
Compensation and employee benefits	40,048	38,737
Net occupancy expense	8,520	8,410
Data processing expense	6,783	5,508
FDIC insurance	2,272	1,937
Amortization of intangibles	705	762
Advertising and promotion expense	966	1,232
Provision charge (benefit) for credit losses on off-balance sheet credit exposures	(506)	739
Merger-related expenses	2,202	1,100
Other operating expenses	10,331	11,060
Total non-interest expense	71,321	69,485
Income before income tax expense	42,970	54,990
Income tax expense	10,888	14,454
Net income	$32,082	$40,536
Basic earnings per share	$0.43	$0.54
Weighted average basic shares outstanding	75,260,029	74,645,336
Diluted earnings per share	$0.43	$0.54
Weighted average diluted shares outstanding	75,275,660	74,702,527

Consolidated Statements of Comprehensive Income

	Three months ended March 31,
	2024	2023
Net income	$32,082	$40,536
Other comprehensive income (loss), net of tax:
Unrealized gains and losses on available for sale debt securities:
Net unrealized (losses) gains arising during the period	(9,957)	20,864
Reclassification adjustment for gains included in net income	—	—
Total	(9,957)	20,864
Unrealized gains and losses on derivatives:
Net unrealized gains (losses) arising during the period	3,385	(616)
Reclassification adjustment for gains included in net income	(3,069)	(3,080)
Total	316	(3,696)
Amortization related to post-retirement obligations	(829)	(269)
Total other comprehensive (loss) income	(10,470)	16,899
Total comprehensive income	$21,612	$57,435

Consolidated Statements of Changes in Stockholders’ Equity

Three months ended March 31, 2023 (Unaudited)

For the three months ended March 31, 2023	COMMON STOCK	ADDITIONAL PAID-IN CAPITAL	RETAINED EARNINGS	ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME	TREASURYSTOCK	UNALLOCATED ESOP SHARES	COMMON STOCK ACQUIRED BY DEFERRED COMP PLANS	DEFERRED COMPENSATION PLANS	TOTAL STOCKHOLDERS’ EQUITY
Balance as of December 31, 2022	$832	$981,138	$918,158	$(165,045)	$(127,154)	$(10,226)	$(3,427)	$3,427	$1,597,703
Net income	—	—	40,536	—	—	—	—	—	40,536
Other comprehensive income net of tax	—	—	—	16,899	—	—	—	—	16,899
Cash dividends paid	—	—	(18,594)	—	—	—	—	—	(18,594)
Cumulative effect of adopting Accounting Standards Update ("ASU") No. 2022-02, net of tax	—	—	433	—	—	—	—	—	433
Distributions from deferred comp plans	—	47	—	—	—	—	138	(138)	47
Purchase of employee restricted shares to fund statutory tax withholding	—	—	—	—	(1,667)	—	—	—	(1,667)
Stock option exercises	—	(217)	—	—	1,007	—	—	—	790
Allocation of ESOP shares	—	244	—	—	—	812	—	—	1,056
Allocation of Stock Award Plan ("SAP") shares	—	2,833	—	—	—	—	—	—	2,833
Treasury shares issued due to acquisition	—	—	—	—	—	—	—	—	—
Allocation of stock options	—	44	—	—	—	—	—	—	44
Balance as of March 31, 2023	$832	$984,089	$940,533	$(148,146)	$(127,814)	$(9,414)	$(3,289)	$3,289	$1,640,080

Consolidated Statements of Changes in Stockholders’ Equity

Three months ended March 31, 2024 (Unaudited)

For the three months ended March 31, 2024	COMMON STOCK	ADDITIONAL PAID-IN CAPITAL	RETAINED EARNINGS	ACCUMULATED OTHER COMPREHENSIVE LOSS	TREASURY STOCK	UNALLOCATED ESOP SHARES	COMMON STOCK ACQUIRED BY DEFERRED COMP PLANS	DEFERRED COMPENSATION PLANS	TOTAL STOCKHOLDERS’ EQUITY
Balance as of December 31, 2023	832	989,058	974,542	(141,115)	(127,825)	(4,896)	(2,694)	2,694	1,690,596
Net income	—	—	32,082	—	—	—	—	—	32,082
Other comprehensive loss, net of tax	—	—	—	(10,470)	—	—	—	—	(10,470)
Cash dividends paid	—	—	(18,144)	—	—	—	—	—	(18,144)
Distributions from deferred comp plans	—	33	—	—	—	—	148	(148)	33
Purchase of employee restricted shares to fund statutory tax withholding	—	—	—	—	(1,237)	—	—	—	(1,237)
Stock option exercises	—	—	—	—	—	—	—	—	—
Allocation of ESOP shares	—	(58)	—	—	—	811	—	—	753
Allocation of SAP shares	—	1,521	—	—	—	—	—	—	1,521
Allocation of stock options	—	28	—	—	—	—	—	—	28
Balance as of March 31, 2024	$832	$990,582	$988,480	$(151,585)	$(129,062)	$(4,085)	$(2,546)	$2,546	$1,695,162

Consolidated Statements of Cash Flows

	Three months ended March 31,
	2024	2023
Cash flows from operating activities:
Net income	$32,082	$40,536
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangibles	2,801	3,044
Provision charge for credit losses on loans and securities	186	6,001
Provision (benefit) charge for credit losses on off-balance sheet credit exposures	(506)	739
Deferred tax expense	4,419	357
Amortization of operating lease right-of-use assets	2,627	2,628
Income on Bank-owned life insurance	(1,817)	(1,484)
Net amortization of premiums and discounts on securities	1,824	1,824
Accretion of net deferred loan fees	(1,866)	(2,739)
Amortization of premiums on purchased loans, net	50	48
Originations of loans held for sale	(2,169)	(6,776)
Proceeds from sales of loans originated for sale	645	9,377
ESOP expense	753	1,056
Allocation of stock award expense	1,521	2,833
Allocation of stock option expense	28	44
Net gain on sale of loans	(45)	(778)
Net loss on securities transactions	1	5
Net gain on sale of premises and equipment	—	(62)
Net gain on sale of foreclosed assets	(42)	(2,280)
Decrease (increase) in accrued interest receivable	289	(137)
(Increase) decrease in other assets	(13,379)	40,019
Increase (decrease) in other liabilities	14,007	(36,189)
Net cash provided by operating activities	41,409	58,066
Cash flows from investing activities:
Net decrease in loans	34,378	14,278
Purchases of loans	—	(1,026)
Proceeds from sales of foreclosed assets	98	2,946
Proceeds from maturities, calls and paydowns of held to maturity debt securities	13,983	12,164
Purchases of investment securities held to maturity	(5,743)	(6,006)
Proceeds from maturities, calls and paydowns of available for sale debt securities	40,891	43,081
Purchases of available for sale debt securities	(30,775)	(34,802)
Proceeds from redemption of Federal Home Loan Bank stock	28,792	70,285
Purchases of Federal Home Loan Bank stock	(27,325)	(82,252)
BOLI claim benefits received	820	1,397
Proceeds from sales of premises and equipment	—	62
Purchases of premises and equipment	(536)	(613)
Net cash provided by investing activities	54,583	19,514
Cash flows from financing activities:
Net decrease in deposits	(193,622)	(265,667)
Increase in mortgage escrow deposits	7,043	7,455
Cash dividends paid to stockholders	(18,144)	(18,594)

	Three months ended March 31,
	2024	2023
Purchase of employee restricted shares to fund statutory tax withholding	(1,237)	(1,667)
Stock options exercised	—	790
Proceeds from long-term borrowings	—	482,445
Payments on long-term borrowings	—	(13,500)
Net increase (decrease) in short-term borrowings	88,065	(221,497)
Net cash used in financing activities	(117,895)	(30,235)
Net (decrease) increase in cash and cash equivalents	(21,903)	47,345
Cash and cash equivalents at beginning of period	180,185	186,438
Restricted cash at beginning of period	70	70
Total cash, cash equivalents and restricted cash at beginning of period	180,255	186,508
Cash and cash equivalents at end of period	158,282	233,783
Restricted cash at end of period	70	70
Total cash, cash equivalents and restricted cash at end of period	$158,352	$233,853
Cash paid during the period for:
Interest on deposits and borrowings	$65,911	$33,809
Income taxes	$1,317	$960
Transfer of loans receivable to foreclosed assets	$—	$12,285

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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.