Provident Financial Services (PFS) investor relations material

Executive summary

• Net earnings for Q2 2026 were $78 million ($0.60 per diluted share), with core net earnings of $80 million ($0.61 per share), and EPS up 17% year-over-year for the first half.

• Profitability metrics expanded year-over-year, with core ROAA at 1.27% and core ROATCE at 16.22%.

• Record pre-provision net revenue and strong commercial loan production drove profitability.

• Lakeland merger fully integrated with cost savings realized.

• Asset quality metrics improved sequentially, with non-performing loans at 27 basis points of total loans excluding a specific senior housing relationship.

Financial highlights

• Record revenue of $235 million, including net interest income of $203 million and non-interest income of $32 million.

• Net interest margin expanded to 3.48%, with core NIM up to 3.09%.

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

• Period-end loans held for investment rose $398 million (annualized 8%), and deposits increased $445 million (annualized 9%).

• Wealth AUM at $4.5B; Q2 insurance revenue $5.7MM.

Outlook and guidance

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

• Non-interest income guidance raised to $29 million per quarter for Q3 and Q4.

• Full-year effective tax rate projected at 28%-28.25%; targeting core ROA of 1.2%-1.3% and mid-teens return on average tangible common equity.

• 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.