Provident Financial Services (PFS) investor relations material

Executive summary

• Net income for Q1 2026 was $79.4 million ($0.61 per share), up 24% year-over-year, with strong profitability metrics and a 13.5% increase in pre-provision net revenue driven by higher net interest income and insurance platform performance.

• Annualized return on average assets was 1.29%, and adjusted return on average tangible common equity reached 16.6%.

• Commercial loan production rose 8% year-over-year, with a record $3.11 billion commercial loan pipeline and diversified growth across CRE, C&I, specialty lending, and middle market.

• Non-maturity core deposits increased, but total deposits declined due to seasonal municipal outflows and reduced broker deposits.

• Management reaffirmed full-year 2026 guidance, expecting continued EPS and tangible book value growth.

Financial highlights

• Revenue for Q1 2026 was $225.2 million, with net interest income of $194 million and record non-interest income of $31.5 million.

• Net interest margin was 3.40% (reported) and 3.04% (core), with expectations for slight expansion in Q2.

• Efficiency ratio improved to 52%, down from 54.43% year-over-year.

• Tangible book value per share increased $0.33 to $16.03, up 2.1% sequentially.

• Average earning assets increased by $264 million (4.7% annualized), with average yield on assets at 5.53%.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: 4%-6% loan and deposit growth, non-interest income averaging $28.5 million per quarter, core ROA of 1.2%-1.3%, and mid-teens return on average tangible common equity.

• NIM outlook tightened to 3.4%-3.45% for 2026, with three basis points of core NIM expansion expected in Q2.

• Core operating expenses projected at $117-$119 million per quarter for the remainder of 2026, with higher run rate in the second half due to core system upgrades.

• Management optimistic about continued EPS and tangible book value growth, supported by a robust loan pipeline and strategic initiatives.