PROVIDENT FINANCIAL SERVICES INC
For the period ended Jun 30, 2026. Filed Aug 7, 2026.
View on SEC.govAbout 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.
Jun 30, 2026 · Filed Aug 7, 2026
PFS$22.96+0.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-08.
0001628280-26-032754
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-07.
0001628280-26-054777
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 74 previous paragraphs and 82 current paragraphs.
32 unchanged; 39 reworded; 10 added; 3 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 9 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (10)
Current report
On June 30, 2026, New Jersey enacted tax legislation containing several corporate tax provisions, including a temporary limitation on the utilization of Corporation Business Tax net operating loss deductions. Pursuant to ASC 740, Income Taxes, the Company recorded the effects of the enacted legislation in the second quarter of 2026. The impact on the Company's consolidated financial statements was immaterial.
Current report
(1) Within the multi-family portfolio above, rent-stabilized loans totaled less than 1% of the portfolio as of June 30, 2026.
Current report
For the six months ended June 30, 2026, the net interest margin increased 12 basis points to 3.47%, compared to 3.35% for the six months ended June 30, 2025. The weighted average yield on interest-earning assets declined 5 basis points to 5.60% for the six months ended June 30, 2026, compared to 5.65% for the six months ended June 30, 2025, while the weighted average cost of interest-bearing liabilities decreased 21 basis points to 2.71% for the six months ended June 30, 2026, compared to 2.92% for the same period last year. The average cost of interest-bearing deposits decreased 25 basis points to 2.38% for the six months ended June 30, 2026, compared to 2.63% for the same period last year. Average non-interest-bearing demand deposits totaled $3.68 billion for the six months ended June 30, 2026, compared with $3.71 billion for the six months ended June 30, 2025. The average cost of total deposits, including non-interest-bearing deposits, was 1.93% for the six months ended June 30, 2026, compared with 2.10% for the six months ended June 30, 2025. The average cost of borrowings for the six months ended June 30, 2026, was 3.90%, compared to 3.86% for the same period last year.
Current report
Interest income on loans secured by real estate increased $7.0 million to $386.9 million for the six months ended June 30, 2026, from $379.8 million for the six months ended June 30, 2025. Commercial loan interest income increased $6.0 million to $160.7 million for the six months ended June 30, 2026, from $154.7 million for the six months ended June 30, 2025. Consumer loan interest income decreased $0.8 million to $19.9 million for the six months ended June 30, 2026, from $20.6 million for the six months ended June 30, 2025. For the six months ended June 30, 2026, the average balance of total loans increased $752.8 million to $19.46 billion, compared with $18.71 billion for the same period in 2025. The average yield on total loans for the six months ended June 30, 2026, decreased 11 basis points to 5.87%, from 5.98% for the same period in 2025.
Current report
Interest expense on borrowed funds decreased $0.7 million to $23.7 million for the three months ended June 30, 2026, from $24.5 million for the three months ended June 30, 2025. For the six months ended June 30, 2026, interest expense on borrowed funds increased $2.5 million to $44.7 million, from $42.2 million for the six months ended June 30, 2025. The average cost of borrowings decreased to 3.91% for the three months ended June 30, 2026, from 3.94% for the three months ended June 30, 2025. The average cost of borrowings increased to 3.90% for the six months ended June 30, 2026, from 3.86% for the same period last year. Average borrowings decreased $55.0 million to $2.44 billion for the three months ended June 30, 2026, from $2.49 billion for the three months ended June 30, 2025. For the six months ended June 30, 2026, average borrowings increased $104.9 million to $2.31 billion, compared to $2.21 billion for the six months ended June 30, 2025.
Current report
The Company recorded provisions 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 recaptures of provisions of $2.7 million and $2.3 million for the three and six months ended June 30, 2025, respectively. The provision for credit losses on loans for the three and six months ended June 30, 2026 was primarily due to overall growth in the loan portfolio, combined with an increase in specific reserves on individually evaluated loans.
Current report
Non-Interest Income. Non-interest income totaled $32.0 million for the quarter ended June 30, 2026, an increase of $4.9 million, compared to the same period in 2025. 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.
Current report
$0.6 million to $14.9 million for the six months ended June 30, 2026, compared to the same period in 2025, mainly due to an increase in the average market value of assets under management during the period. Partially offsetting these increases in non-interest income, net gains on securities transactions decreased $0.4 million for the six months ended June 30, 2026.
Current report
Non-Interest Expense. For the three months ended June 30, 2026, non-interest expense totaled $119.3 million, an increase of $4.6 million, compared to the three months ended June 30, 2025. Merger-related expenses increased $1.5 million for the three months ended June 30, 2026, compared to the same period in 2025. 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.
Current report
Income Tax Expense. For the three months ended June 30, 2026, the Company's income tax expense was $27.9 million with an effective tax rate of 26.3%, compared with $30.5 million with an effective tax rate of 29.7% for the three months ended June 30, 2025. 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 the effects of recently adopted New Jersey legislation regarding net operating loss usage.
Removed paragraphs (3)
Previous report
Net income for the three months ended March 31, 2026 was positively impacted by pre-provision, net revenue growth of 13.5%, or $12.9 million, when compared to the three months ended March 31, 2025, driven primarily by expanding net interest income and higher insurance agency income. Net income in the current quarter also benefited from a $2.1 million recapture of previous provisions for credit losses.
Previous report
Interest expense on borrowed funds increased $3.2 million to $21.0 million for the three months ended March 31, 2026, from $17.8 million for the three months ended March 31, 2025. The average cost of borrowings increased to 3.90% for the three months ended March 31, 2026, from 3.76% for the three months ended March 31, 2025. Average borrowings increased $266.7 million to $2.18 billion for the three months ended March 31, 2026, from $1.92 billion for the three months ended March 31, 2025.
Previous report
For the quarter ended March 31, 2026, the Company recorded a $2.1 million recapture of previous provisions for credit losses compared to a $635,000 provision for credit losses for the first quarter of 2025. The recapture of provision consisted of a $4.7 million recapture of provision related to loans, partially offset by a $2.5 million provision related to off-balance sheet credit exposures, compared with provisions for credit losses on loans and off-balance sheet credit exposures of $325,000 and $310,000, respectively, for the quarter ended March 31, 2025. The recapture of the provision for credit losses on loans in the current quarter was primarily due to a reduction in specific reserves on individually evaluated loans.
Reworded paragraphs (39)
Previous wording
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.
Current wording
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 legislation and regulations affecting financial institutions, including regulatory fees, capital requirements and tax laws, higher than expected tax and other liabilities, 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.
Previous wording
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.
Current wording
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 and other risks and uncertainties could affect the Company's financial performance and could cause the Company's actual results to differ materially from any forward-looking 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 such statement.
Previous wording
One of the most significant judgments involved in estimating the Company’s allowance for credit losses on loans relates to the macroeconomic forecasts used to estimate expected credit losses over the forecast period. As of March 31, 2026, the model incorporated Moody’s baseline economic forecast, as adjusted for qualitative factors, as well as an extensive review of classified loans and loans that were classified as impaired with a specific reserve assigned to those loans. The allowance estimation process resulted in a total recapture of previous provisions on loans of $4.7 million for the three months ended March 31, 2026, and an overall coverage ratio of 90 basis points. Management believes the allowance for credit losses accurately represents the estimated inherent losses, factoring in the qualitative adjustment and other assumptions, including the selection of the baseline forecast within the model.
Current wording
One of the most significant judgments involved in estimating the Company’s allowance for credit losses on loans relates to the macroeconomic forecasts used to estimate expected credit losses over the forecast period. As of June 30, 2026, the model incorporated Moody’s baseline economic forecast, as adjusted for qualitative factors, as well as an extensive review of classified loans and loans that were classified as impaired with a specific reserve assigned to those loans. The allowance estimation process resulted in a provision of $9.6 million and $4.9 million for the three and six months ended June 30, 2026, and an overall coverage ratio of 92 basis points. Management believes the allowance for credit losses accurately represents the estimated inherent losses, factoring in the qualitative adjustment and other assumptions, including the selection of the baseline forecast within the model.
Previous wording
The CECL approach to calculate the allowance for credit losses on loans is significantly influenced by the composition, characteristics and quality of the Company’s loan portfolio, as well as the prevailing economic conditions and forecast utilized. Although management believes that the Company has established and maintained the allowance for credit losses at appropriate levels, additions may be necessary if future economic and other conditions differ substantially from the current operating environment and economic forecast. Management evaluates its estimates and assumptions on an ongoing basis giving consideration to forecasted economic factors, historical loss experience and other factors. The model includes both quantitative and qualitative components. Such estimates and assumptions are adjusted when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods, and to the extent actual losses are higher than management estimates, additional provision for credit losses on loans could be required and could adversely affect our earnings or financial position in future periods. In addition, various regulatory agencies periodically review the adequacy of the Company’s allowance for credit losses as an integral part of their examination process. Such agencies may require the Company to recognize additions to the allowance or additional write-downs based on their judgments about information available to them at the time of their examination. Although management uses the best information available, the level of the allowance for credit losses remains an estimate that is subject to significant judgment and short-term volatility.
Current wording
The CECL approach to calculate the allowance for credit losses on loans is significantly influenced by the composition, characteristics and quality of the Company’s loan portfolio, as well as the prevailing economic conditions and forecast utilized. Although management believes that the Company has established and maintained the allowance for credit losses at appropriate levels, additions may be necessary if future economic and other conditions differ substantially from the current operating environment and economic forecast. Management evaluates its estimates and assumptions on an ongoing basis giving consideration to forecasted economic factors, historical loss experience and other factors. The model includes both quantitative and qualitative components. Such estimates and assumptions are adjusted when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods, and to the extent actual losses are higher than management estimates, additional provision for credit losses on loans could be required and could adversely affect our earnings or financial position in future periods. In addition, various regulatory agencies periodically review the adequacy of the Company’s allowance for credit losses as an integral part of their examination process. Such agencies may require the Company to recognize additions to the allowance or additional write-downs based on their judgments about information available to them at the time of their examination.
Previous wording
Total assets as of March 31, 2026 were $25.20 billion, a $221.0 million increase from December 31, 2025. The increase in total assets was primarily due to a $143.6 million increase in total loans and a $60.9 million increase in total investments.
Current wording
Total assets as of June 30, 2026 were $25.66 billion, a $682.6 million increase from December 31, 2025. The increase in total assets was primarily due to a $541.7 million increase in loans held for investment and a $106.0 million increase in total investments.
Previous wording
The Company’s loans held for investment portfolio increased $143.6 million to $19.65 billion as of March 31, 2026, from $19.50 billion as of December 31, 2025. The loan portfolio consists of the following (in thousands):
Current wording
The Company’s loans held for investment portfolio totaled $20.05 billion as of June 30, 2026 and $19.50 billion as of December 31, 2025. The loan portfolio consisted of the following:
Previous wording
(1) Commercial loans consist of owner-occupied real estate, commercial & industrial loans and mortgage warehouse lines.
Current wording
(1) Commercial loans consist of owner-occupied real estate and commercial and industrial loans.
Previous wording
During the three months ended March 31, 2026, the loans held for investment portfolio had net increases of $123.1 million of commercial loans, $56.9 million of multi-family loans and $24.9 million of commercial mortgage loans, partially offset by net decreases of $22.5 million of mortgage warehouse lines, $21.2 million of construction loans and $13.5 million of residential mortgage loans. Total commercial loans, consisting of commercial real estate, multi-family, commercial and construction loans, as well as mortgage warehouse lines, represented 86.9% of the loan portfolio as of March 31, 2026, compared to 86.7% as of December 31, 2025.
Current wording
During the six months ended June 30, 2026, the loans held for investment portfolio had 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.
Previous wording
We consider our commercial real estate loans to be higher risk categories in our loan portfolio. These loans are particularly sensitive to economic conditions. As of March 31, 2026, our portfolio of commercial real estate loans, including multi-family and construction loans, totaled $11.79 billion, or 59.97% of total loans.
Current wording
We consider our commercial real estate loans to be higher risk categories in our loan portfolio. These loans are particularly sensitive to economic conditions. As of June 30, 2026, our portfolio of commercial real estate loans, including multi-family and construction loans, totaled $11.95 billion, or 59.6% of total loans.
Previous wording
The table below summarizes the concentrations of CRE loans on a gross basis, not including any purchase accounting adjustments ("PAA"), based on the collateral securing the loans, as of March 31, 2026 (in thousands):
Current wording
The table below summarizes the concentrations of CRE loans on a gross basis, not including any PAA, based on the collateral securing the loans, as of June 30, 2026 (in millions):
Previous wording
The table below summarizes the Company’s commercial real estate portfolio, including multi-family and construction loans as of March 31, 2026, as segregated by the geographic region in which the property is located (dollars in thousands):
Current wording
The table below summarizes the Company’s commercial real estate portfolio, including multi-family and construction loans on a gross basis, not including any purchase accounting adjustments as of June 30, 2026, as segregated by the geographic region in which the property is located (dollars in millions):
Previous wording
The Company participates in loans originated by other banks, including participations designated as Shared National Credits (“SNCs”). The Company’s gross commitments and outstanding balances as a participant in SNCs were $196.9 million and $81.2 million, respectively, as of March 31, 2026, compared to $197.5 million and $65.7 million, respectively, as of December 31, 2025.
Current wording
The Company participates in loans originated by other banks, including participations designated as Shared National Credits (“SNCs”). The Company’s gross commitments and outstanding balances as a participant in SNCs were $187.5 million and $90.9 million, respectively, as of June 30, 2026, compared to $174.8 million and $65.7 million, respectively, as of December 31, 2025.
Previous wording
As of March 31, 2026, the Company’s allowance for credit losses related to the loan portfolio was 0.90% of total loans, compared to 0.95% as of December 31, 2025 and 1.02% as of March 31, 2025, respectively. The Company recorded a $4.7 million recapture of provision on loans for the three months ended March 31, 2026, compared with a provision on loans of $325,000 for the three months ended March 31, 2025, respectively. For the three months ended March 31, 2026, the Company had net charge-offs of $3.1 million, compared to net charge-offs of $2.0 million for the same period in 2025. The allowance for credit losses decreased $7.8 million to $177.0 million as of March 31, 2026, from $184.8 million as of December 31, 2025.
Current wording
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 0.95% and 0.98% as of December 31, 2025 and June 30, 2025, respectively. 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. For the three and six months ended June 30, 2026, the Company had net charge-offs of $1.9 million and $5.0 million, respectively, compared to net charge-offs of $1.2 million and $3.2 million, respectively, for the same periods in 2025. The allowance for credit losses decreased $0.1 million 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.
Previous wording
Total non-performing loans were $142.9 million, or 0.73% of total loans as of March 31, 2026, compared to $78.4 million, or 0.40% of total loans as of December 31, 2025. 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, partially offset by payoffs. These loans have no prior charge-off history and require no specific reserve allocations due to strong collateral values. Appraisals received in 2026 reflect loan-to-value ratios for the collateral properties of 32.9%, 51.7%, 61.3%, and 81.9%.
Current wording
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. Included in non-performing loans are four commercial loans on senior housing properties totaling $81.8 million that are the subject of related bankruptcy filings. These loans have no prior charge-off history and require no specific reserve allocations due to strong collateral values, which are supported by appraisals received in 2026 and, more recently, initial bids submitted through the ongoing bankruptcy sale process.
Previous wording
For both March 31, 2026 and December 31, 2025, the Company held foreclosed assets of $2.0 million. Foreclosed assets as of March 31, 2026 were comprised of commercial real estate. Total non-performing assets as of March 31, 2026 increased $64.5 million to $144.9 million, or 0.58% of total assets, from $80.4 million, or 0.32% of total assets as of December 31, 2025.
Current wording
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 as of 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 as of December 31, 2025.
Previous wording
Total investment securities were $3.53 billion as of March 31, 2026, a $60.9 million increase from December 31, 2025. This increase was primarily due to purchases of mortgage-backed securities and a decrease in unrealized losses on available for sale debt securities.
Current wording
Total investment securities were $3.57 billion as of June 30, 2026, a $106.0 million increase from December 31, 2025. This increase was primarily due to purchases of mortgage-backed securities, partially offset by an increase in unrealized losses on available for sale debt securities.
Previous wording
Total deposits decreased $178.4 million during the three months ended March 31, 2026, to $19.10 billion. Total savings and demand deposit accounts decreased $80.7 million to $15.91 billion as of March 31, 2026, while total time deposits decreased $97.7 million to $3.19 billion as of March 31, 2026. The decrease in savings and demand deposits consisted of a $147.2 decrease in municipal deposits and a $42.8 million decrease in interest-bearing brokered deposits, partially offset a $53.4 million increase in money market deposits, a $12.4 million increase in savings deposits and a $2.3 million increase in non-interest-bearing demand deposits. The decrease in municipal deposits was mainly due to seasonal outflows. The decrease in time deposits consisted of an $82.5 million decrease in brokered time deposits, combined with a $15.2 million decrease in retail time deposits.
Current wording
Total deposits increased $266.5 million during the six months ended June 30, 2026, to $19.55 billion. 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. The increase in time deposits was primarily attributable to a $149.3 million increase in brokered time deposits.
Previous wording
Borrowed funds increased $371.0 million during the three months ended March 31, 2026, to $2.48 billion. The increase in borrowings was largely done to fund seasonal outflows in municipal deposits and replace maturing brokered deposits. Borrowed funds represented 9.9% of total assets as of March 31, 2026, an increase from 8.5% as of December 31, 2025.
Current wording
Borrowed funds increased $295.6 million during the six months ended June 30, 2026, to $2.41 billion. The increase in borrowed funds was largely used to fund seasonal outflows in municipal deposits and to replace maturing brokered deposits. Borrowed funds represented 9.4% of total assets as of June 30, 2026, an increase from 8.5% as of December 31, 2025.
Previous wording
Stockholders’ equity increased $29.7 million during the three months ended March 31, 2026, to $2.86 billion, primarily due to net income earned for the period and a decrease in unrealized losses on available for sale debt securities, partially offset by cash dividends paid to stockholders and common stock repurchases. For the three months ended March 31, 2026, common stock repurchases totaled 588,923 shares at an average cost of $21.04 per share, of which 100,381 shares at an average cost of $21.29 were made in connection with withholding to cover income taxes on the vesting of stock-based compensation. As of March 31, 2026, approximately 2.2 million shares remained eligible for repurchase under the current authorization.
Current wording
Stockholders’ equity increased $73.8 million during the six months ended June 30, 2026, to $2.91 billion, 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, of which 126,180 shares at an average cost of $21.47 were made in connection with withholding to cover income taxes on the vesting of stock-based compensation. As of June 30, 2026, approximately 2,199,471 shares remained eligible for repurchase under the current stock repurchase authorization.
Previous wording
Liquidity and Capital Resources. Liquidity refers to the Company’s ability to generate adequate amounts of cash to meet financial obligations to its depositors, to fund loans and securities purchases and operating expenses. Sources of funds include scheduled amortization of loans, loan prepayments, scheduled maturities of unpledged investments, cash flows from mortgage-backed securities and the ability to borrow funds from the FHLBNY, FRBNY and approved broker-dealers.
Current wording
Liquidity and Capital Resources. Liquidity refers to the Company’s ability to generate adequate amounts of cash to meet financial obligations to its depositors, to fund loans and securities purchases and operating expenses. Sources of funds include scheduled amortization of loans, loan prepayments, scheduled maturities of unpledged investments, cash flows from mortgage-backed securities and the ability to borrow funds from the FHLBNY, the Federal Reserve Bank of New York ("FRBNY") and approved broker-dealers.
Previous wording
Cash flows from loan payments and maturing investment securities are fairly predictable sources of funds. Changes in interest rates, local economic conditions and the competitive marketplace can influence loan prepayments, prepayments on mortgage-backed securities and deposit flows. For the three months ended March 31, 2026 and 2025, loan repayments totaled $2.27 billion and $1.72 billion, respectively.
Current wording
Cash flows from loan payments and maturing investment securities are fairly predictable sources of funds. Changes in interest rates, local economic conditions and the competitive marketplace can influence loan prepayments, prepayments on mortgage-backed securities and deposit flows. For the six months ended June 30, 2026 and 2025, loan repayments totaled $4.72 billion and $3.79 billion, respectively.
Previous wording
The Company has continued to monitor and focus on depositor behavior and borrowing capacity with the FHLBNY and FRBNY, with current borrowing capacity of $4.17 billion and $2.94 billion, respectively as of March 31, 2026. Our estimated uninsured and uncollateralized deposits as of March 31, 2026 totaled $4.90 billion, or 25.6% of deposits. Our total estimated uninsured deposits, including collateralized deposits as of March 31, 2026, was $10.61 billion. Within time deposits, approximately $752.2 million, or 23.6% was uninsured as of March 31, 2026.
Current wording
The Company continues to monitor and focus on depositor behavior and borrowing capacity with FHLBNY and FRBNY, with current borrowing capacity of $4.38 billion and $2.96 billion, respectively, as of June 30, 2026. Our estimated uninsured and uncollateralized deposits as of June 30, 2026 totaled $5.00 billion, or 25.6% of deposits. Our total estimated uninsured deposits, including collateralized deposits as of June 30, 2026, were $10.62 billion. Within time deposits, approximately $760.5 million, or 22.1% was uninsured as of June 30, 2026.
Previous wording
Commercial real estate loans, multi-family loans, commercial loans, one- to four-family residential loans and consumer loans are the primary investments of the Company. Purchasing securities for the investment portfolio is a secondary use of funds and the investment portfolio is structured to complement and facilitate the Company’s lending activities and ensure adequate liquidity. Loan originations and purchases totaled $2.42 billion for the three months ended March 31, 2026, compared to $1.93 billion for the same period in 2025. Purchases for the investment portfolio totaled $191.3 million for the three months ended March 31, 2026, compared to $802.3 million for the year ended December 31, 2025. As of March 31, 2026, the Bank had outstanding loan commitments to borrowers of $3.96 billion, including undisbursed home equity lines and personal credit lines of $657.8 million.
Current wording
Commercial real estate loans, multi-family loans, commercial loans, one- to four-family residential loans and consumer loans are the primary investments of the Company. Purchasing securities for the investment portfolio is a secondary use of funds and the investment portfolio is structured to complement and facilitate the Company’s lending activities and ensure adequate liquidity. Loan originations and purchases totaled $5.28 billion for the six months ended June 30, 2026, compared to $4.30 billion for the same period in 2025. Purchases for the investment portfolio totaled $447.6 million for the six months ended June 30, 2026, compared to $802.3 million for the year ended December 31, 2025. As of June 30, 2026, the Bank had outstanding loan commitments to borrowers of $4.07 billion, including undisbursed home equity lines and personal credit lines of $660.3 million.
Previous wording
Total deposits decreased $178.4 million for the three months ended March 31, 2026. Deposit activity is affected by changes in interest rates, competitive pricing and product offerings in the marketplace, local economic conditions, customer confidence and other factors such as stock market volatility. Certificate of deposit accounts that are scheduled to mature within one year totaled $3.06 billion as of March 31, 2026. Based on its current pricing strategy and customer retention experience, the Bank expects to retain a significant share of these accounts. The Bank manages liquidity on a daily basis and expects to have sufficient cash to meet all of its funding requirements.
Current wording
Total deposits increased $266.5 million during the six months ended June 30, 2026, to $19.55 billion. Deposit activity is affected by changes in interest rates, competitive pricing and product offerings in the marketplace, local economic conditions, customer confidence and other factors such as stock market volatility. Certificate of deposit accounts that are scheduled to mature within one year totaled $3.35 billion as of June 30, 2026. Based on its current pricing strategy and customer retention experience, the Bank expects to retain a significant share of these accounts. The Bank manages liquidity on a daily basis and expects to have sufficient cash to meet all of its funding requirements.
Previous wording
(2) For a period of three years following completion of the merger, the Bank will be required to maintain a Tier 1 capital to total assets leverage ratio of at least 8.5% and a total capital to risk-based assets ratio of at least 11.25%.
Current wording
(2) For a period of three years following completion of the merger with Lakeland, the Bank will be required to maintain a Tier 1 capital to total assets leverage ratio of at least 8.5% and a total capital to risk-based assets ratio of at least 11.25%.
Previous wording
COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025
Current wording
COMPARISON OF OPERATING RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025
Previous wording
General. The Company reported net income of $79.4 million, or $0.61 per basic and diluted share for the three months ended March 31, 2026, compared to net income of $64.0 million, or $0.49 per basic and diluted share, for the three months ended March 31, 2025.
Current wording
General. 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 net income of $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.
Previous wording
The following table sets forth certain information for the three months ended March 31, 2026 and 2025. For the periods indicated, the total dollar amount of interest income from average interest-earning assets and the resultant yields, as well as the interest expense on average interest-bearing liabilities is expressed both in dollars and rates. No tax equivalent adjustments were made. Average balances are daily averages.
Current wording
The following tables sets forth certain information for the three and six months ended June 30, 2026. For the periods indicated, the total dollar amount of interest income from average interest-earning assets and the resultant yields, as well as the interest expense on average interest-bearing liabilities is expressed both in dollars and rates. No tax equivalent adjustments were made. Average balances are daily averages.
Previous wording
Net Interest Income. Net interest income increased $12.0 million to $193.7 million for the three months ended March 31, 2026, from $181.7 million for same period in 2025. The increase in net interest income was primarily due to originations of new loans, combined with favorable repricing of deposits, partially offset by a decrease in lower-costing deposits.
Current wording
Net Interest Income. Net interest income increased $15.6 million to $202.7 million for the three months ended June 30, 2026, from $187.1 million for the same period in 2025. Net interest income increased $27.6 million to $396.4 million for the six months ended June 30, 2026, from $368.8 million for the same period in 2025. The increase was primarily due to originations of new loans at current market rates, combined with favorable repricing of deposits.
Previous wording
The net interest margin increased six basis points to 3.40% for the quarter ended March 31, 2026, compared to 3.34% for the quarter ended March 31, 2025. The weighted average yield on interest-earning assets decreased 10 basis points to 5.53% for the quarter ended March 31, 2026, compared to 5.63% for the quarter ended March 31, 2025, while the weighted average cost of interest-bearing liabilities decreased 19 basis points for the quarter ended March 31, 2026, to 2.71%, compared to 2.90% for the quarter ended March 31, 2025. The average cost of interest-bearing deposits for the quarter ended March 31, 2026, was 2.39%, compared to 2.64% for the same period last year. Average non-interest-bearing demand deposits totaled $3.64 billion for the quarter ended March 31, 2026, compared to $3.72 billion for the quarter ended March 31, 2025. The average cost of total deposits, including non-interest-bearing deposits, was 1.94% for the quarter ended March 31, 2026, compared with 2.11% for the quarter ended March 31, 2025. The average cost of borrowed funds for the quarter ended March 31, 2026, was 3.90%, compared to 3.76% for the same period last year.
Current wording
The net interest margin increased 12 basis points to 3.48% for the quarter ended June 30, 2026, compared to 3.36% for the quarter ended June 30, 2025. The weighted average yield on interest-earning assets decreased 7 basis points to 5.61% for the quarter ended June 30, 2026, compared to 5.68% for the quarter ended June 30, 2025, while the weighted average cost of interest-bearing liabilities decreased 23 basis points for the quarter ended June 30, 2026, to 2.71%, compared to 2.94% for the quarter ended June 30, 2025. The average cost of interest-bearing deposits for the quarter ended June 30, 2026, was 2.37%, compared to 2.62% for the same period last year. Average non-interest-bearing demand deposits totaled $3.72 billion for the quarter ended June 30, 2026, compared to $3.70 billion for the quarter ended June 30, 2025. The average cost of total deposits, including non-interest-bearing deposits, was 1.92% for the quarter ended June 30, 2026, compared with 2.10% for the quarter ended June 30, 2025. The average cost of borrowed funds for the quarter ended June 30, 2026, was 3.91%, compared to 3.94% for the same period last year.
Previous wording
Interest income on loans secured by real estate increased $4.4 million to $191.5 million for the three months ended March 31, 2026, from $187.1 million for the three months ended March 31, 2025. Commercial loan interest income increased $2.1 million to $77.9 million for the three months ended March 31, 2026, from $75.8 million for the three months ended March 31, 2025. Consumer loan interest income decreased $258,000 to $9.9 million for the three months ended March 31, 2026, from $10.2 million for the three months ended March 31, 2025. For the three months ended March 31, 2026, the average balance of total loans increased $763.7 million to $19.35 billion, compared to the same period in 2025. The average yield on total loans for the three months ended March 31, 2026, decreased 10 basis points to 5.85%, from 5.95% for the same period in 2025.
Current wording
Interest income on loans secured by real estate increased $2.6 million to $195.4 million for the three months ended June 30, 2026, from $192.8 million for the three months ended June 30, 2025. Commercial loan interest income increased $3.9 million to $82.8 million for the three months ended June 30, 2026, from $78.9 million for the three months ended June 30, 2025. Consumer loan interest income decreased $0.5 million to $10.0 million for the three months ended June 30, 2026, from $10.5 million for the three months ended June 30, 2025. For the three months ended June 30, 2026, the average balance of total loans increased $742.0 million to $19.57 billion, compared to the same period in 2025. The average yield on total loans for the three months ended June 30, 2026, decreased 11 basis points to 5.90%, from 6.01% for the same period in 2025.
Previous wording
Interest income on held to maturity debt securities decreased $202,000 to $1.8 million for the three months ended March 31, 2026, compared to the same period last year. Average held to maturity debt securities decreased $46.2 million to $273.8 million for the three months ended March 31, 2026, from $320.0 million for the same period in 2025.
Current wording
Interest income on held to maturity debt securities totaled $1.8 million for the three months ended June 30, 2026, compared to $2.0 million for the same period last year. Average held to maturity debt securities decreased $48.5 million to $266.7 million for the three months ended June 30, 2026, from $315.2 million for the same period last year. Interest income on held to maturity debt securities decreased $390,000 to $3.6 million for the six months ended June 30, 2026, compared to the same period in 2025. Average held to maturity debt securities decreased $47.3 million to $270.3 million for the six months ended June 30, 2026, from $317.6 million for the same period last year.
Previous wording
Interest income on available for sale debt securities decreased $4.0 million to $31.5 million for the three months ended March 31, 2026, from $27.5 million for the three months ended March 31, 2025. The average balance of available for sale debt securities increased $389.9 million to $3.22 billion for the three months ended March 31, 2026, compared to the same period in 2025.
Current wording
Interest income on available for sale debt securities increased $4.3 million to $33.6 million for the three months ended June 30, 2026, from $29.3 million for the three months ended June 30, 2025. The average balance of available for sale debt securities increased $314.5 million to $3.27 billion for the three months ended June 30, 2026, compared to the same period in 2025. Interest income on available for sale debt securities increased $8.6 million to $65.1 million for the six months ended June 30, 2026, from $56.5 million for the same period last year. The average balance of available for sale debt securities increased $352.0 million to $3.25 billion for the six months ended June 30, 2026.
Previous wording
Dividend income on FHLBNY stock decreased $319,000 to $1.7 million for the three months ended March 31, 2026, from $2.0 million for the three months ended March 31, 2025. The average balance of FHLBNY stock increased $12.8 million to $120.3 million for the three months ended March 31, 2026, compared to the same period in 2025.
Current wording
Dividend income on FHLBNY stock increased $0.1 million to $2.2 million for the three months ended June 30, 2026, from $2.1 million for the three months ended June 30, 2025. The average balance of FHLBNY stock decreased $1.1 million to $132.4 million for the three months ended June 30, 2026, compared to the same period in 2025. Dividend income on FHLBNY stock increased $8.2 million to $69.3 million for the six months ended June 30, 2026, from $61.1 million for the same period last year. The average balance of FHLBNY stock increased $5.5 million to $126.4 million for the six months ended June 30, 2026.
Previous wording
The average yield on total securities increased to 3.80% for the three months ended March 31, 2026, compared with 3.74% for the same period in 2025.
Current wording
The average yield on total securities increased to 3.99% for the three months ended June 30, 2026, compared with 3.81% for the same period in 2025. For the six months ended June 30, 2026, the average yield on total securities increased to 3.90%, compared with 3.75% for the same period in 2025.
Previous wording
Interest expense on deposit accounts decreased $5.5 million to $91.9 million for the three months ended March 31, 2026, from $97.4 million for the three months ended March 31, 2025. The average cost of interest-bearing deposits decreased to 2.39% for the three months ended March 31, 2026, from 2.64% for the three months ended March 31, 2025. The average balance of interest-bearing core deposits, which consist of total savings and demand deposits, for the three months ended March 31, 2026, increased $587.4 million to $12.37 billion. Average time deposit account balances increased $31.3 million to $3.23 billion for the three months ended March 31, 2026, from $3.20 billion for the three months ended March 31, 2025.
Current wording
Interest expense on deposit accounts decreased $4.5 million to $91.8 million for the three months ended June 30, 2026, compared with $96.3 million for the three months ended June 30, 2025. For the six months ended June 30, 2026, interest expense on deposit accounts decreased $9.9 million to $183.7 million, from $193.7 million for the same period last year. The average cost of interest-bearing deposits improved to 2.37% and 2.38% for the three and six months ended June 30, 2026, respectively, from 2.62% and 2.63% for the three and six months ended June 30, 2025, respectively. The average balance of interest-bearing core deposits, which consist of total savings and demand deposits, for the three months ended June 30, 2026, increased $752.6 million to $12.27 billion. For the six months ended June 30, 2026, average interest-bearing core deposits increased $670.5 million, to $12.32 billion, from $11.65 billion for the same period in 2025. Average time deposit account balances increased $39.1 million to $3.24 billion for the three months ended June 30, 2026, from $3.20 billion for the three months ended June 30, 2025. For the six months ended June 30, 2026, average time deposit account balances increased $35.3 million to $3.23 billion, from $3.20 billion for the same period in 2025.
Previous wording
Non-Interest Income. Non-interest income totaled $31.5 million for the quarter ended March 31, 2026, an increase of $4.4 million, compared to the same period in 2025. BOLI income increased $1.9 million to $4.0 million for the three months ended March 31, 2026, compared to the prior year quarter, primarily due to an increase in benefit claims. Insurance agency income increased $1.2 million to $6.9 million for the three months ended March 31, 2026, compared to the quarter ended March 31, 2025, largely due to an increase in contingency income and business activity. Fee income increased $809,000 to $10.5 million for the three months ended March 31, 2026, compared to the prior year quarter, primarily due to increases in deposit fee income and commercial loan prepayment fees. Additionally, other income increased $486,000 to $2.7 million for the three months ended March 31, 2026, compared to the quarter ended March 31, 2025, primarily due to an increase in net gains on the sale of SBA loans, combined with an increase in gain on fixed asset sales, partially offset by a decrease in net fees on loan-level interest rate swap transactions.
Current wording
For the six months ended June 30, 2026, non-interest income totaled $63.4 million, an increase of $9.3 million compared to the same period in 2025. BOLI income increased $3.2 million to $7.8 million for the six months ended June 30, 2026, compared to the same period in 2025, primarily due to an increase in benefit claims recognized. Fee income increased $2.3 million to $22.7 million for the six months ended June 30, 2026, compared to the same period in 2025, primarily due to increases in loan related and deposit fee income. Additionally, insurance agency income increased $1.7 million to $12.3 million for the six months ended June 30, 2026, compared to $10.6 million for the same period in 2025, largely due to increases in contingent commissions, retention revenue and new business activity. Other income increased $1.5 million to $4.3 million for the six months ended June 30, 2026, compared to $2.8 million for the same period in 2025, primarily due to an increase in profit on fixed asset sales and gains on sales of Small Business Administration ("SBA") loans. Within other non-interest income, gains on the sale of SBA loans totaled $1.7 million for the six months ended June 30, 2026. Wealth management income increased
Previous wording
Non-Interest Expense. For the three months ended March 31, 2026, non-interest expense totaled $117.1 million, an increase of $874,000, compared to the three months ended March 31, 2025. Compensation and benefits expense increased $3.8 million to $66.2 million for three months ended March 31, 2026, compared to $62.4 million for the same period in 2025. The increase was primarily due to an increase in salary expense associated with Company-wide annual merit increases, combined with increases in employee medical benefits and stock-based compensation expenses. Net occupancy expense increased $1.1 million to $15.0 million for the three months ended March 31, 2026, compared to the same period in 2025, largely due to increases in snow removal, utilities and other maintenance costs. Partially offsetting these increases to non-interest expense, other operating expense decreased $2.5 million to $14.0 million for the three months ended March 31, 2026, compared to $16.4 million for the three months ended March 31, 2025, largely due to a $2.7 million write-down on a foreclosed property in the prior year. Additionally, amortization of intangibles decreased $938,000 to $8.6 million for the three months ended March 31, 2026, compared to $9.5 million for 2025, primarily due to a scheduled reduction in the rate of core deposit intangible amortization related to Lakeland, while FDIC insurance expense decreased $544,000 to $2.8 million for the three months ended March 31, 2026, compared to the same period in 2025, primarily due to a decrease in the assessment rate.
Current wording
Non-interest expense totaled $236.4 million for the six months ended June 30, 2026, an increase of $5.5 million, compared to $230.9 million for the six months ended June 30, 2025. Compensation and benefits expense increased $7.9 million to $133.5 million for the six months ended June 30, 2026, compared to $125.6 million for the six months ended June 30, 2025, primarily attributable to increases in salary expense, employee medical benefits and stock-based compensation expenses. Additionally, costs associated with our ongoing core system conversion totaled $1.5 million. Partially offsetting these increases to non-interest expense, amortization of intangibles decreased $1.9 million to $17.1 million for the six months ended June 30, 2026, compared to $19.0 million for the six months ended June 30, 2025, largely due to a scheduled reduction in the rate of core deposit intangible amortization related to the merger with Lakeland. Other operating expenses decreased $1.6 million to $29.4 million for the three months ended June 30, 2026, compared to $30.9 million for the same period in 2025, primarily due to a $2.7 million write-down on a foreclosed property in the prior year, partially offset by an increase in professional service expenses.
Previous wording
Income Tax Expense. For the three months ended March 31, 2026, the Company's income tax expense was $30.8 million with an effective tax rate of 27.9%, compared with $27.8 million with an effective tax rate of 30.3% for the three months ended March 31, 2025. The increase in tax expense for the three months ended March 31, 2026, compared with the same period last year, was largely due to an increase in pre-tax income, partially offset by a discrete item related to stock-based compensation. The decrease in the effective tax rate was primarily related to ongoing benefits from tax credits recognized in the current quarter, combined with the aforementioned discrete item related to stock-based compensation.
Current wording
For the six months ended June 30, 2026, the Company's income tax expense was $58.7 million with an effective tax rate of 27.1%, compared with income tax expense of $58.3 million with an effective tax rate of 30.0% for the six months ended June 30, 2025. The increase in tax expense for the six months ended June 30, 2026 compared with the same period last year was largely due to an increase in taxable income, combined with the effects of recent legislation adopted by New Jersey with regard to net operating loss usage, partially offset by discrete items related to benefits associated with carry-back tax credits and purchases of current year tax credits. The decrease in 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 the effects of recently adopted New Jersey legislation regarding net operating loss usage.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Although management uses the best information available, the level of the allowance for credit losses remains an estimate that is subject to significant judgment and short-term volatility.