PROVIDENT FINANCIAL SERVICES INC

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 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.

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 September 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 $7.2 million and $12.1 million for the three and nine months ended September 30, 2026, and an overall coverage ratio of 94 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

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.

Current wording

Total assets as of September 30, 2026 were $25.85 billion, an $866.7 million increase from December 31, 2025. The increase in total assets was primarily due to a $666.0 million increase in loans held for investment and a $94.4 million increase in total investments.

Previous 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:

Current wording

The Company’s loans held for investment portfolio totaled $20.17 billion as of September 30, 2026 and $19.50 billion as of December 31, 2025. The loan portfolio consisted of the following:

Previous 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.

Current wording

During the nine months ended September 30, 2026, the loans held for investment portfolio had net increases of $394.0 million of commercial loans, $206.0 million of commercial mortgage loans, $174.4 million of multi-family loans and $32.7 million of construction loans, partially offset by net decreases of $74.0 million of mortgage warehouse lines, $62.9 million of residential mortgage loans and $1.5 million of consumer loans. Total commercial loans, including mortgage warehouse lines, commercial mortgage, multi-family and construction loans, represented 87.5% of the loan portfolio as of September 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 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.

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 September 30, 2026, our portfolio of commercial real estate loans, including multi-family and construction loans, totaled $12.14 billion, or 60.2% of total loans.

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 $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.

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 $177.3 million and $95.7 million, respectively, as of September 30, 2026, compared to $174.8 million and $65.7 million, respectively, as of December 31, 2025.

Previous 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.

Current wording

As of September 30, 2026, the Company’s allowance for credit losses related to the loan portfolio was 0.94% of total loans, compared to 0.95% and 0.97% as of December 31, 2025 and September 30, 2025, respectively. The Company recorded a provision for credit losses on loans of $7.2 million and $12.1 million for the three and nine months ended September 30, 2026, respectively, compared with provisions totaling $4.5 million and $2.2 million for the three and nine months ended September 30, 2025, respectively. For the three and nine months ended September 30, 2026, the Company had net charge-offs of $2.4 million and $7.4 million, respectively, compared to net charge-offs of $5.4 million and $8.6 million, respectively, for the same periods in 2025. The allowance for credit losses increased $4.7 million to $189.5 million as of September 30, 2026 from $184.8 million as of December 31, 2025. The increase in the allowance for credit losses on loans as of September 30, 2026 compared to December 31, 2025 was due to a $12.1 million provision for credit losses on loans, partially offset by net charge-offs of $7.4 million.

Previous 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.

Current wording

Total non-performing loans were $140.1 million, or 0.69% of total loans as of September 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 $81.2 million that are the subject of related bankruptcy filings. These loans have no prior charge-off history and three of the four loans require no specific reserve allocations, while one loan has a specific reserve of $488,000. These allocations are based on sales agreements for the four collateral properties and stipulation agreements for the related loan payoffs, all of which have been approved by the bankruptcy court.

Previous 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.

Current wording

As of September 30, 2026 and December 31, 2025, the Company held foreclosed assets of $1.0 million and $2.0 million, respectively. Foreclosed assets as of September 30, 2026 was comprised of one commercial real estate property. Total non-performing assets as of September 30, 2026 increased $60.7 million to $141.1 million, or 0.55% of total assets, from $80.4 million, or 0.32% of total assets as of December 31, 2025.

Previous wording

Total investment securities were $3.57 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.

Current wording

Total investment securities were $3.56 billion as of September 30, 2026, a $94.4 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 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.

Current wording

Total deposits increased $528.2 million during the nine months ended September 30, 2026, to $19.81 billion. Total savings and demand deposit accounts increased $590.5 million to $16.58 billion as of September 30, 2026, while total time deposits decreased $62.4 million to $3.22 billion as of September 30, 2026. The increase in savings and demand deposits was largely attributable to a $408.5 million increase in money market deposits, a $176.1 million increase in interest-bearing demand deposits and a $143.5 million increase in non-interest bearing demand deposits, partially offset by a $137.6 million decrease in savings deposits. Within interest-bearing demand deposits, municipal deposits decreased $527.3 million, primarily due to seasonal outflows. To assist in funding the aforementioned seasonal outflows, brokered demand deposits increased by $432.5 million.

Previous 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.

Current wording

Borrowed funds increased $278.8 million during the nine months ended September 30, 2026, to $2.39 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 9.2% of total assets as of September 30, 2026, an increase from 8.5% as of December 31, 2025.

Previous 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.

Current wording

Stockholders’ equity increased $31.3 million during the nine months ended September 30, 2026, to $2.86 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 nine months ended September 30, 2026, common stock repurchases totaled 1,464 shares at an average cost of $24.44 per share, all of which were made in connection with withholding to cover income taxes on the vesting of stock-based compensation. For the nine months ended September 30, 2026, common stock repurchases totaled 616,186 shares at an average cost of $21.10 per share. As of September 30, 2026, approximately 2,198,007 shares remained eligible for repurchase under the current stock repurchase authorization.

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 six months ended June 30, 2026 and 2025, loan repayments totaled $4.72 billion and $3.79 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 nine months ended September 30, 2026 and 2025, loan repayments totaled $7.08 billion and $6.31 billion, respectively.

Previous 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.

Current wording

The Company continues to monitor and focus on depositor behavior and borrowing capacity with FHLBNY and FRBNY, with current borrowing capacity of $4.76 billion and $3.02 billion, respectively, as of September 30, 2026. Our estimated uninsured and uncollateralized deposits as of September 30, 2026 totaled $5.22 billion, or 26.4% of deposits. Our total estimated uninsured deposits, including collateralized deposits as of September 30, 2026, were $10.88 billion. Within time deposits, approximately $761.3 million, or 23.6% was uninsured as of September 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 $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.

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 $2.29 billion for the nine months ended September 30, 2026, compared to $2.04 billion for the same period in 2025. Purchases for the investment portfolio totaled $683.7 million for the nine months ended September 30, 2026, compared to $802.3 million for the year ended December 31, 2025. As of September 30, 2026, the Bank had outstanding loan commitments to borrowers of $3.95 billion, including undisbursed home equity lines and personal credit lines of $655.1 million.

Previous 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.

Current wording

Total deposits increased $528.2 million during the nine months ended September 30, 2026, to $19.81 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 $3.14 billion as of September 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

COMPARISON OF OPERATING RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025

Current wording

COMPARISON OF OPERATING RESULTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025

Previous 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.

Current wording

General. The Company reported net income of $69.2 million, or $0.53 per basic and diluted share for the three months ended September 30, 2026, compared to net income of $71.7 million, or $0.55 per basic and diluted share, for the three months ended September 30, 2025. For the nine months ended September 30, 2026, net income totaled $226.7 million, or $1.74 per basic and diluted share, compared to $207.7 million, or $1.59 per basic and diluted share, for the nine months ended September 30, 2025.

Previous 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.

Current wording

The following tables sets forth certain information for the three and nine months ended September 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 $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.

Current wording

Net Interest Income. Net interest income increased $13.7 million to $208.0 million for the three months ended September 30, 2026, from $194.3 million for the same period in 2025. Net interest income increased $41.3 million to $604.4 million for the nine months ended September 30, 2026, from $563.2 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 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.

Current wording

The net interest margin increased 7 basis points to 3.50% for the quarter ended September 30, 2026, compared to 3.43% for the quarter ended September 30, 2025. The weighted average yield on interest-earning assets decreased 8 basis points to 5.68% for the quarter ended September 30, 2026, compared to 5.76% for the quarter ended September 30, 2025, while the weighted average cost of interest-bearing liabilities decreased 17 basis points for the quarter ended September 30, 2026, to 2.79%, compared to 2.96% for the quarter ended September 30, 2025. The average cost of interest-bearing deposits for the quarter ended September 30, 2026, was 2.50%, compared to 2.67% for the same period last year. Average non-interest-bearing demand deposits totaled $3.85 billion for the quarter ended September 30, 2026, compared to $3.73 billion for the quarter ended September 30, 2025. The average cost of total deposits, including non-interest-bearing deposits, was 2.02% for the quarter ended September 30, 2026, compared with 2.10% for the quarter ended September 30, 2025. The average cost of borrowed funds for the quarter ended September 30, 2026, was 4.01%, compared to 3.96% for the same period last year.

Previous wording

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 wording

For the nine months ended September 30, 2026, the net interest margin increased 8 basis points to 3.46%, compared to 3.38% for the nine months ended September 30, 2025. The weighted average yield on interest-earning assets declined 8 basis points to 5.61% for the nine months ended September 30, 2026, compared to 5.69% for the nine months ended September 30, 2025, while the weighted average cost of interest-bearing liabilities decreased 20 basis points to 2.73% for the nine months ended September 30, 2026, compared to 2.93% for the same period last year. The average cost of interest-bearing deposits decreased 22 basis points to 2.42% for the nine months ended September 30, 2026, compared to 2.64% for the same period last year. Average non-interest-bearing demand deposits totaled $3.74 billion for the nine months ended September 30, 2026, compared with $3.72 billion for the nine months ended September 30, 2025. The average cost of total deposits, including non-interest-bearing deposits, was 1.96% for the nine months ended September 30, 2026, compared with 2.12% for the nine months ended September 30, 2025. The average cost of borrowings for the nine months ended September 30, 2026, was 3.93%, compared to 3.89% for the same period last year.

Previous 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.

Current wording

Interest income on loans secured by real estate increased $6.2 million to $203.5 million for the three months ended September 30, 2026, from $197.3 million for the three months ended September 30, 2025. Commercial loan interest income increased $2.1 million to $84.0 million for the three months ended September 30, 2026, from $81.9 million for the three months ended September 30, 2025. Consumer loan interest income decreased $0.8 million to $10.1 million for the three months ended September 30, 2026, from $10.8 million for the three months ended September 30, 2025. For the three months ended September 30, 2026, the average balance of total loans increased $974.4 million to $19.88 billion, compared to the same period in 2025. The average yield on total loans for the three months ended September 30, 2026 decreased 15 basis points to 5.94%, from 6.09% for the same period in 2025.

Previous wording

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 wording

Interest income on loans secured by real estate increased $13.3 million to $590.4 million for the nine months ended September 30, 2026, from $577.1 million for the nine months ended September 30, 2025. Commercial loan interest income increased $8.1 million to $244.7 million for the nine months ended September 30, 2026, from $236.6 million for the nine months ended September 30, 2025. Consumer loan interest income decreased $1.5 million to $29.9 million for the nine months ended September 30, 2026, from $31.5 million for the nine months ended September 30, 2025. For the nine months ended September 30, 2026, the average balance of total loans increased $827.4 million to $19.60 billion, compared with $18.78 billion for the same period in 2025. The average yield on total loans for the nine months ended September 30, 2026, decreased 12 basis points to 5.90%, from 6.02% for the same period in 2025.

Previous 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.

Current wording

Interest income on held to maturity debt securities totaled $1.7 million for the three months ended September 30, 2026, compared to $1.9 million for the same period last year. Average held to maturity debt securities decreased $41.5 million to $258.0 million for the three months ended September 30, 2026, from $299.5 million for the same period last year. Interest income on held to maturity debt securities decreased $550,000 to $5.3 million for the nine months ended September 30, 2026, compared to the same period in 2025. Average held to maturity debt securities decreased $45.4 million to $266.1 million for the nine months ended September 30, 2026, from $311.5 million for the same period last year.

Previous 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.

Current wording

Interest income on available for sale debt securities increased $4.9 million to $35.9 million for the three months ended September 30, 2026, from $31.0 million for the three months ended September 30, 2025. The average balance of available for sale debt securities increased $259.6 million to $3.33 billion for the three months ended September 30, 2026, compared to the same period in 2025. Interest income on available for sale debt securities increased $13.5 million to $101.0 million for the nine months ended September 30, 2026, from $87.5 million for the same period last year. The average balance of available for sale debt securities increased $320.9 million to $3.27 billion for the nine months ended September 30, 2026.

Previous 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.

Current wording

Dividend income on FHLBNY stock decreased $318,000 to $2.2 million for the three months ended September 30, 2026, from $2.5 million for the three months ended September 30, 2025. The average balance of FHLBNY stock decreased $8.1 million to $108.7 million for the three months ended September 30, 2026, compared to the same period in 2025. Dividend income on FHLBNY stock increased $12.8 million to $107.5 million for the nine months ended September 30, 2026, from $94.7 million for the same period last year. The average balance of FHLBNY stock increased $919,000 to $120.4 million for the nine months ended September 30, 2026.

Previous 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.

Current wording

The average yield on total securities increased to 4.18% for the three months ended September 30, 2026, compared with 3.89% for the same period in 2025. For the nine months ended September 30, 2026, the average yield on total securities increased to 3.99%, compared with 3.81% for the same period in 2025.

Previous 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.

Current wording

Interest expense on deposit accounts decreased $238,000 to $101.9 million for the three months ended September 30, 2026, compared with $102.1 million for the three months ended September 30, 2025. For the nine months ended September 30, 2026, interest expense on deposit accounts decreased $10.2 million to $285.6 million, from $295.8 million for the same period last year. The average cost of interest-bearing deposits improved to 2.50% and 2.42% for the three and nine months ended September 30, 2026, respectively, from 2.67% and 2.64% for the three and nine months ended September 30, 2025, respectively. The average balance of interest-bearing core deposits, which consist of total savings and demand deposits, for the three months ended September 30, 2026, increased $1.3 billion to $12.87 billion. For the nine months ended September 30, 2026, average interest-bearing core deposits increased $779.8 million, to $12.51 billion, from $11.73 billion for the same period in 2025. Average time deposit account balances increased $16.3 million to $3.30 billion for the three months ended September 30, 2026, from $3.29 billion for the three months ended September 30, 2025. For the nine months ended September 30, 2026, average time deposit account balances increased $28.9 million to $3.26 billion, from $3.23 billion for the same period in 2025.

Previous wording

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 wording

Interest expense on borrowed funds decreased $2.0 million to $19.3 million for the three months ended September 30, 2026, from $21.3 million for the three months ended September 30, 2025. For the nine months ended September 30, 2026, interest expense on borrowed funds increased $489,000 to $64.0 million, from $63.6 million for the nine months ended September 30, 2025. The average cost of borrowings increased to 4.01% for the three months ended September 30, 2026, from 3.96% for the three months ended September 30, 2025. The average cost of borrowings increased to 3.93% for the nine months ended September 30, 2026, from 3.89% for the same period last year. Average borrowings decreased $224.2 million to $1.91 billion for the three months ended September 30, 2026, from $2.14 billion for the three months ended September 30, 2025. For the nine months ended September 30, 2026, average borrowings decreased $6.0 million to $2.18 billion, compared to $2.18 billion for the nine months ended September 30, 2025.

Previous wording

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 wording

The Company recorded provisions for credit losses on loans of $7.2 million and $12.1 million for the three and nine months ended September 30, 2026, respectively, compared with provisions of $4.5 million and $2.2 million for the three and nine months ended September 30, 2025, respectively. The provision for credit losses on loans for the three and nine months ended September 30, 2026 was primarily due to an increase in specific reserves on individually evaluated loans, combined with overall growth in the loan portfolio.

Previous wording

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 wording

Non-Interest Income. For the three months ended September 30, 2026, total non-interest income was $30.5 million, compared to $27.4 million for the three months ended September 30, 2025, an increase of $3.1 million. The increase was primarily driven by a $3.8 million increase in BOLI income and an $803,000 increase in insurance agency income, partially offset by a $1.1 million decrease in fee income. The increase in BOLI income was primarily related to an increase in benefit claims, while the increase in insurance agency income was due to an increase in business activity in the current quarter. The decrease in fee income was primarily related to a decrease in loan related fee income.

Previous 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

Current wording

For the nine months ended September 30, 2026, non-interest income totaled $94.0 million, an increase of $12.4 million compared to the same period in 2025. BOLI income increased $7.0 million to $14.3 million for the nine months ended September 30, 2026, compared to the same period in 2025, primarily due to an increase in benefit claims recognized. Insurance agency income increased $2.7 million to $17.4 million for the nine months ended September 30, 2026, compared to $14.7 million for the same period in 2025, largely due to increases in contingent commissions, retention revenue and new business activity. Additionally, fee income increased $1.3 million to $33.0 million for the nine months ended September 30, 2026, compared to the same period in 2025, primarily due to increases in loan related and deposit fee income. Wealth management income increased $1.1 million to $22.7 million for the nine months ended September 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.

Previous wording

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 wording

Non-Interest Expense. For the three months ended September 30, 2026, non-interest expense totaled $140.7 million, an increase of $27.6 million, compared to the three months ended September 30, 2025. The increase was primarily driven by a $17.5 million loss related to the extinguishment of subordinated debt, a $4.8 million increase in compensation and benefits expense, partially due to increases in salary expense, combined with increases in employee medical benefits and incentive-based compensation expenses, $3.7 million related to costs associated with our core system conversion, a $1.3 million increase in data processing expense and a $969,000 increase in other non-interest expense, partially offset by a $934,000 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 increase in data processing expense was primarily due to an increase in software maintenance expense, while the increase in other non-interest expense was due to increases in loan collection and business development expenses.

Previous 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.

Current wording

Non-interest expense totaled $377.1 million for the nine months ended September 30, 2026, an increase of $33.1 million, compared to $344.0 million for the nine months ended September 30, 2025. The increase was primarily driven by a $17.5 million loss related to the extinguishment of subordinated debt. Additionally, compensation and benefits expense increased $12.6 million to $201.4 million for the nine months ended September 30, 2026, compared to $188.8 million for the nine months ended September 30, 2025, primarily attributable to increases in salary expense, employee medical benefits and stock-based compensation expenses, while costs associated with our successful core system conversion totaled $3.7 million. Partially offsetting these increases to non-interest expense, amortization of intangibles decreased $2.8 million to $25.7 million for the nine months ended September 30, 2026, compared to $28.5 million for the nine months ended September 30, 2025, largely due to a scheduled reduction in the rate of core deposit intangible amortization related to the merger with Lakeland.

Previous wording

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.

Current wording

Income Tax Expense. For the three months ended September 30, 2026, the Company's income tax expense was $23.5 million with an effective tax rate of 25.3%, compared with $29.9 million with an effective tax rate of 29.4% for the three months ended September 30, 2025. 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. The effective tax rate change was primarily related to the aforementioned discrete items.

Previous 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.

Current wording

For the nine months ended September 30, 2026, the Company's income tax expense was $82.1 million with an effective tax rate of 26.6%, compared with income tax expense of $88.2 million with an effective tax rate of 29.8% for the nine months ended September 30, 2025. The decrease in tax expense for the nine months ended September 30, 2026 compared with the same period last year was primarily related to a decrease in pre-tax book income, combined with discrete items related to benefits associated with carry-back 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.