What is the market's earnings forecast for Provident Financial next quarter?

What were the key takeaways from Provident Financial’s earnings call?

What factors drove the changes in Provident Financial's revenue and profit?

What guidance did Provident Financial's management provide for the next earnings period?

What were the key takeaways from Provident Financial's earnings call?

What is Provident Financial's latest dividend and current dividend yield?

What does Provident Financial do and what are its main business segments?

What is the revenue and EPS growth rate for Provident Financial year over year?

- **Record Q4 Performance**: $83M net income, 1.78% ROA, $111M pre-provision net revenue.
- **Growth Momentum**: $3.2B loan production, 6.6% deposit growth, $28.3M noninterest income.
- **2026 Guidance**: 4-6% loan/deposit growth, $28.5M/Q noninterest income, 120-130% core ROA.
- **Strategic Initiatives**: Core system upgrade, SBA expansion, wealth management investment.
- **Risk Management**: 0.32% nonperforming assets, 7bps annualized net charge-offs.

**【CEO Summary Section】**
- Reported net earnings of $83 million ($0.64 per share) with record pre-provision net revenue of $111 million (1.78% ROA). 
- Commercial loan production reached $3.2 billion annually, with a $2.7 billion pipeline at 6.22% yield. Core deposits grew 6.6% annualized.
- Noninterest income rose to $28.3 million, driven by SBA gains ($946k Q4, $2.8M annualized) and wealth management growth (AUM $4.2B). 
- Announced 2M share buyback authorization and $5M core system upgrade in Q3 2026.
- 2026 priorities: talent investment in middle market, SBA, wealth; normalized loan payoff activity; and digital capabilities enhancement.

**【CFO Financial Commentary】**
- GAAP net income $83M (1.34% ROA), core ROATCE 17.6%. 
- Net interest margin (NIM) 3.44% (3.01% core), guided to 3.4-3.5% for 2026 with 3-5bp core expansion. 
- Deposit costs declined 4bps to 2.1%, funding 54% of earning assets. 
- Nonperforming assets 0.32%, net charge-offs 9bps annualized. 
- 2026 guidance: loans/deposits +4-6%, noninterest income $28.5M/Q, core ROA 120-130%.

**【Q&A Highlights】**
- **Deposit Competition**: 16.5% avg deposit growth vs industry constraints; focus on low-cost commercial deposits (24% of loan funding). 
- **NIM Outlook**: 3-5bp core expansion from rate cuts, 3.05% December NIM. 
- **Tax Credits**: $3.4M 2025 benefit, 2026 rate 29% vs prior 30%. 
- **M&A Strategy**: Culture fit > size; no immediate interest in CRE portfolios. 
- **CRE Market**: Healthy with 50% prepayment activity in agency loans. 
- **Hiring**: 3-5 new hires in middle market, SBA, and treasury; 2026 expenses $118-120M/Q.

Provident Financial Services, Inc. (PFS) Q4 2025 Earnings Call Transcript

- **Record Performance**: $109 million pretax pre-provision revenue, up 9% QoQ.
- **Deposit Strength**: Core deposits +7.5% annualized, total deposits +8%.
- **Loan Growth**: C&I up double digits, pipeline at 6.15% yield.
- **Efficiency**: 51% ratio reflects strong cost control.
- **Dividend Increase**: $0.24 per share, consistent with prior quarter.
- **Strategic Focus**: Specialty lending reducing CRE concentration to 402%.
- **M&A Cautious**: Organic growth prioritized, M&A as opportunistic.

**【CEO Summary Section】**
- Reported net earnings of $72 million ($0.55 per share), consistent with the prior quarter.
- Pretax pre-provision revenue reached a record $109 million, up 9% quarter-over-quarter.
- Deposits grew $388 million (8% annualized), driven by core deposits (+$291 million).
- Commercial loan production year-to-date reached $2.1 billion, with a pipeline of $2.9 billion at 6.15% yield.
- Nonperforming assets improved to 0.41%, with net charge-offs at $5.4 million.
- Noninterest income grew 6.1% YoY, driven by insurance and wealth management.
- Board approved a quarterly dividend of $0.24 per share.

**【CFO Financial Commentary】**
- Net interest margin (NIM) expanded to 3.43%, with core NIM at 3.36%.
- Efficiency ratio improved to 51%, excluding intangibles (46.72%).
- Average earning assets increased $163 million (3% annualized).
- Total loans grew 5% annualized, with C&I leading at double-digit growth.
- Deposit cost increased 4 basis points to 2.14%, but funding mix remained favorable.
- Projected Q4 NIM range of 3.38%-3.45%.
- Operating expenses held steady at $113 million, with no material changes expected.

**【Q&A Key Highlights】**
- **Loan Competition**: CRE facing increased competition, but C&I remains stable with 65% pipeline conversion.
- **Specialty Lending**: ABL and healthcare loans growing double digits, reducing CRE concentration to 402%.
- **Noninterest Income**: Seasonal decline in insurance expected, but SBA gains up 280% YoY.
- **Capital Deployment**: Preference for organic growth, with dividend payout target 40%-45%.
- **M&A Strategy**: Focus on strategic fits, with no immediate plans but optionality retained.
- **Interest Rate Impact**: 30%-35% beta on deposit repricing, benefiting from Fed cuts.
- **Wealth Management**: New Chief Growth Officer to expand AUM and client relationships.

Provident Financial Services, Inc. (PFS) Q3 2025 Earnings Call Transcript

- **Record Financial Performance**: Q2 net earnings $72M (+15% YoY), ROA 1.19%, NIM 3.36%. Commercial loans +8% annualized, AUM stable at $4.1B.
- **Profitability Drivers**: 53.5% efficiency ratio, $2.9M reserve release. NIM guided 3.35-3.45% with $6B floating loans repricing.
- **Strategic Initiatives**: New Chief Growth Officer for wealth, 8% annualized C&I loan growth, CRE ratio reduced to 408%.
- **Credit Strength**: NCOs 3bps, criticized loans 2.97%, no material credit concerns despite 1 large NPL.
- **Capital Return**: $0.24/Q dividend, TBV +3.2% to $14.60. TCE ratio 8.03% (well-capitalized).


**【CEO Opening Remarks】**
- Q2 net earnings: $72 million ($0.55 EPS), annualized ROA 1.19%, adjusted ROTTE 16.79%. Pretax pre-provision ROA 1.64%.
- Deposit growth: $260M (5.6% annualized), cost of deposits 2.1%.
- Commercial loan production record: $1.4B H1, Q2 $764M (8% annualized growth). CRE ratio 444% (408% adjusted for merger marks).
- Fee businesses: Protection Plus +11.3%, Beacon AUM $4.1B. New Chief Growth Officer to be hired Q3.
- Credit quality: NCOs $1.2M (3bps), delinquencies down, classified loans decline.

**【CFO Financial Commentary】**
- Q2 revenue: $214M (record), NII $187M, NIM 3.36% (3.35-3.45% guidance for 2025). Core NIM stable.
- Earning assets +$383M (7% annualized), yield 5.68% (+5bps). Pipeline pull-through rate 6.3% vs. portfolio 6.05%.
- Expenses: $114.6M, efficiency ratio 53.5%. Guidance: $112-115M/Q. Tax rate 29.7% (29.5% expected for 2025).
- Capital: TBV +$0.45 to $14.60, TCE ratio 8.03%. Dividend $0.24/Q.
- Asset quality: NPA 44bps, NCOs 3bps. CECL reserve release $2.9M, allowance coverage 98bps.

**【Q&A Highlights】**
- **Wealth Management Strategy**: New Chief Growth Officer to integrate Beacon with commercial banking. AUM stable at $4.1B, client count +3%.
- **Provisioning Outlook**: Improved credit quality (criticized loans 2.97%) and macroeconomic assumptions support modest provisioning.
- **M&A Appetite**: Focus on organic growth but open to strategic deals. Stock price reflects value but still undervalued.
- **Deposit Competition**: Consumer deposits under pressure, but business deposits stable (30% of commercial funding). Municipal inflows expected to offset broker deposits.
- **NIM Drivers**: $6B floating rate loans repricing, accretive new loan production. Deposit cost decline cautious due to competition.
- **Pipeline Strength**: $1.6B pull-through adjusted pipeline (6.3% rate). Replenishment underway, no signs of slowdown.


Provident Financial Services, Inc. (PFS) Q2 2025 Earnings Call Transcript

- **Record Q1 performance**: $64M net earnings, 16.15% ROE, 2.94% core NIM.
- **Pipeline strength**: $2.8B loan pipeline (6.31% rate), 3.8% commercial loan growth.
- **Expense control**: 54.4% efficiency ratio, Q1 expenses down 17% YoY.
- **CRE diversification**: Targeting 420-440% ratio, 5% annual CRE growth.
- **Buyback potential**: Stock repurchases under consideration if undervalued, alongside $1.8B pipeline growth.

**【CEO Summary Section】**
- Q1 2025 net earnings: $64 million ($0.49 per share), with adjusted ROA of 1.11% and ROE of 16.15%.
- Core net interest margin increased 9 basis points to 2.94%, driven by lower deposit costs (2.11% average rate).
- Commercial loan growth: 3.8% annualized, with $600 million new loans closed and a $2.8 billion pipeline.
- Credit quality stable: NPL ratio 0.54%, net charge-offs $2 million (annualized 4 basis points).
- Fee-based businesses strong: Provident Protection Plus up 23% YoY, despite Beacon Trust AUM decline.
- Dividend increase to $0.24 per share, reflecting strong capital position (tangible book value up $0.69 to $14.15).

**【CFO Financial Commentary】**
- Q1 revenue: $208.8 million, with core NIM 2.94% (3.34% including purchase accounting).
- Loan growth: $133.4 million (2.8% annualized), driven by C&I (6.5% growth) and CRE.
- Deposit decline: $175 million (seasonal municipal outflows), but cost of funds down 14 basis points.
- Expense control: Q1 core operating expenses $113.6 million, with efficiency ratio 54.4%.
- 2025 guidance: ROA 1.15%, ROE 16%, expense ratio 1.85%, NIM 3.35%-3.45%.

**【Q&A Key Takeaways】**
- **Integration progress**: Full merger completion, seamless cultural alignment, no legacy references.
- **Macroeconomic impact**: Strong pipeline ($2.8 billion) with 6.31% weighted rate, no significant pullbacks despite tariffs.
- **CRE concentration**: Targeting 420-440% range, driven by diversification into C&I lending.
- **M&A strategy**: Stock buybacks preferred over acquisitions; culture fit and financial additivity key if pursuing deals.
- **Expense outlook**: Q2+ core expenses $112-115 million, with potential for lower-end execution.
- **Share buybacks**: Under consideration if stock undervalued, but growth investments (loan pipeline) prioritized.


Provident Financial Services (PFS)-25 Apr 25-2025 Q1 Earnings call transcript

- **Strong Financial Performance**: Q4 net earnings of $48.5 million, with core ROA of 1.05% and fee-based businesses driving growth.
- **Deposit Growth and Cost Efficiency**: Deposits up 5.4% annualized, with total cost of funds decreasing 14 basis points to 2.48%.
- **Lending Momentum**: $713 million in new loans closed, targeting 5%+ growth in 2025 with expanded teams in key markets.
- **Credit Quality**: Nonperforming loans at 39 basis points, with net charge-offs improving to $5.5 million.
- **Expense Management**: 2025 core expenses projected at $112 million to $115 million, reflecting cost synergies and operational efficiency.
- **Strategic Initiatives**: Appointment of Chief Lending Officer Bill Fink and expansion into Pennsylvania and Westchester to drive commercial lending growth.

**【CEO Summary Section】**
- Reported net earnings of $48.5 million, or $0.37 per share, with an annualized adjusted return on average assets of 1.05% and return on average tangible equity of 15.39%.
- Deposits grew $248 million (5.4% annualized), with the average cost of total deposits decreasing 11 basis points to 2.25%.
- Commercial lending team closed $713 million in new loans, with 53% in commercial real estate and 47% in commercial and industrial (C&I) loans, including specialty lending contributions.
- Fee-based businesses showed strong growth: Provident Protection Plus grew 19% year-over-year, and Beacon Trust assets under management reached $4.2 billion (7.5% growth YoY).
- Appointed Bill Fink as Chief Lending Officer to drive commercial lending growth, with expanded teams in Pennsylvania and Westchester.
- Credit quality remained strong, with nonperforming loans at 39 basis points and net charge-offs at $5.5 million.

**【CFO Financial Commentary】**
- Core earnings were $62.9 million ($0.48 per share), excluding merger-related charges. Core ROA was 1.05%, and return on average tangible equity was 15.39%.
- Net interest margin (NIM) expanded 4 basis points to 2.85% (excluding purchase accounting accretion). Projected 2025 NIM range: 3.35% to 3.45%.
- Operating expenses were $114 million, with a 55.4% efficiency ratio. Projected 2025 quarterly core expenses: $112 million to $115 million.
- Effective tax rate for the quarter was 22.6%, with a 2025 estimate of 29.5%.
- Loan pipeline at quarter-end was $1 billion with a weighted average rate of 6.98%, compared to the portfolio yield of 5.99%.

**【Q&A Key Highlights】**
- **Expense Outlook**: 2025 core operating expenses projected at $112 million to $115 million, driven by cost synergies and reduced merger-related costs.
- **Loan Growth**: Targeting 5%+ loan growth in 2025, with $713 million in Q4 production and a focus on C&I and specialty lending.
- **Fee Income**: $26 million quarterly fee target, supported by BOLI benefits, insurance agency income, and loan sales gains.
- **Credit Quality**: Nonperforming loans at 39 basis points, with a coverage ratio of 1.04% and net charge-offs at 12 basis points annualized.
- **Market Expansion**: Adding teams in Pennsylvania and Westchester to capitalize on regional growth opportunities.
- **Interest Rate Sensitivity**: Neutral balance sheet structure limits NIM impact from rate changes, with projected 2025 rate cuts factored into NIM guidance.

PFS

PFS fundamentals

Earnings Call

You can ask Aime