Provident Financial Services Stock Earnings Reports

Provident reported a strong Q1 2026: net earnings of $79M ($0.61/share), ROAA 1.29% and adjusted ROTCE 16.6%. Pre-provision net revenue grew 13.5% YoY to $108M, helped by higher net interest income and record noninterest income led by the Provident Protection Plus insurance platform (high retention and solid new business). Commercial loan production was $649M in the quarter, contributing to period-end commercial loan growth and a record commercial loan pipeline of $3.1B (diversified across CRE, C&I, specialty and middle market). Deposits were down sequentially due to seasonal municipal outflows and a tactical reduction in brokered deposits in favor of lower-cost FHLB borrowings; average noninterest-bearing deposits were stable. Asset quality remains solid overall: net charge-offs were modest ($3.1M) and the uptick in NPAs was driven by four related senior-housing loans tied to a bankruptcy; management expects resolution by year-end with minimal loss given strong collateral LTVs (weighted avg LTV ~53%). NIM outlook was slightly tightened to 3.40%–3.45% (inclusive of purchase accounting accretion) and management now models no further Fed rate actions in 2026. Noninterest expense rose (compensation, occupancy), but efficiency improved YoY (52%) and the bank expects core quarterly operating expenses of ~$117M–$119M for the rest of 2026; a core systems upgrade in Q3 will add ~ $5M of nonrecurring charges. Capital remains strong: tangible book value and tangible CET1 increased, $12.4M of buybacks executed in Q1 with ~2.2M shares remaining on the authorization. Management reaffirmed full-year 2026 guidance: 4%–6% loan and deposit growth, noninterest income averaging ~$28.5M/quarter, core ROAA 1.2%–1.3% and mid-teens ROTCE.