Provident Financial Services (PFS) Q4 2025 earnings summary

Executive summary

• Delivered record Q4 2025 revenues and net income of $83.4 million ($0.64/share), with annualized ROA of 1.34% and continued organic growth focus.

• Achieved record pre-provision net revenue of $111 million (ROA 1.78%) and maintained a loan pipeline over $2.5 billion for four quarters.

• No merger-related transaction costs in 2025, compared to $117 million in 2024; 2024 included a $60.1 million CECL provision.

• Maintained top-quartile risk-adjusted returns and favorable credit metrics, with non-performing assets at 0.32%.

• Strategic focus remains on organic growth, talent investment, and enhancing digital capabilities.

Financial highlights

• Record revenue of $226 million, with net interest income at $197 million and non-interest income at $28.3 million.

• Net interest margin increased to 3.44% in Q4 2025; core net interest margin rose to 3.01%.

• Average earning assets grew $307 million (5.4% annualized) sequentially; total commercial loan portfolio grew by $225.3 million (5.35% annualized) to $16.93 billion.

• Core deposits increased $260 million (6.6% annualized) and period-end deposits rose $182 million (3.8% annualized) from the prior quarter.

• Tangible book value per share increased $0.57 to $15.70; tangible common equity ratio improved to 8.48%.

Outlook and guidance

• Projecting loans and deposits to grow 4%-6% in 2026, with non-interest income averaging $28.5 million per quarter.

• Targeting core ROA of 1.20%-1.30% and mid-teens return on average tangible common equity for 2026.

• Expecting core NIM expansion of 3-5 bps per quarter, with reported NIM in the 3.4%-3.5% range.

• Core operating expenses projected at $118-$120 million per quarter, with higher run rate in the second half of 2026.

• Management expects continued EPS growth and compounding tangible book value in 2026, with ongoing investments to sustain momentum.