Provident Financial Services (PFS) investor relations material

Executive summary

• Q2 2026 delivered record net income of $78.1 million ($0.60 per share), with core net income at $80 million ($0.61 per share), and EPS up 17% year-over-year for the first half of 2026.

• Profitability metrics expanded, with annualized adjusted/core ROA at 1.27% and core ROATCE at 16.22%.

• Record revenues were driven by expanding net interest income and non-interest income, supported by strong commercial loan production.

• Lakeland merger fully integrated with cost savings realized.

• Total assets reached $25.7 billion as of June 30, 2026, driven by loan and investment growth.

Financial highlights

• Net interest income reached a record $203 million, up 8% year-over-year; non-interest income was a record $32 million, up 12% year-over-year.

• Adjusted pre-provision net revenue hit a record $118 million (1.87% of average assets), up 23 bps year-over-year.

• Net interest margin expanded to 3.48% (reported), with core NIM up 5 bps to 3.09%.

• Average earning assets increased $272 million sequentially; total assets: $25.7B; total loans: $20.0B; total deposits: $19.5B.

• Non-interest expense rose to $119.3 million, mainly due to compensation, benefits, and core system conversion costs.

Outlook and guidance

• Loan and deposit growth expected at the high end of 5%-6% full-year range.

• Non-interest income guidance raised to $29 million per quarter for Q3 and Q4; operating expense run rate between $117M and $119M.

• Core ROA targeted at 1.2%-1.3%, with mid-teens ROATCE.

• Net interest margin expected at 3.45-3.50% with 1-2 bps core margin expansion per quarter in H2 2026.

• Asset quality metrics expected to remain strong; charge-off ratio forecasted at 10-15 bps for 2026.