Provident Financial Services Reports $291.2 Million Net Income for 2025 Following Lakeland Merger

**Provident Financial Services Reports Strong 2025 Performance Following Lakeland Merger**

Provident Financial Services, Inc. (PFS) has reported its financial results for the year ended December 31, 2025, showcasing a significant increase in net income to $291.2 million, or $2.23 per basic and diluted share, compared to $115.5 million, or $1.05 per share, in 2024. This substantial improvement is attributed to the full-year impact of the merger with Lakeland Bancorp, Inc., completed on May 16, 2024, which added $10.59 billion in assets, $7.91 billion in loans, and $8.62 billion in deposits. The prior year's earnings were impacted by merger-related expenses and the initial CECL provision for credit losses on loans recorded as part of the Lakeland acquisition.

Net interest income for 2025 increased by $160.0 million to $760.6 million, with the net interest margin rising to 3.39% from 3.26% in 2024. This growth was driven by the increase in average earning assets following the Lakeland merger and the accretion of purchase accounting adjustments, further supported by lower funding costs. Total assets reached $24.98 billion as of December 31, 2025, a $928.9 million increase from the previous year. The loan portfolio also saw growth, with commercial loans, multi-family loans, and commercial mortgage loans increasing, while construction loans, residential mortgage loans, and consumer loans experienced slight decreases.

Strategic developments during the year included the integration of Lakeland's operations, which involved closing 13 acquired Lakeland banking offices and nine legacy Provident Bank branches to eliminate geographic overlap. The company also continued to focus on managing interest rate risk by emphasizing the origination of commercial real estate loans, multi-family loans, and commercial business loans. During 2025, Provident paid cash dividends totaling $125.9 million and repurchased 158,293 shares of its common stock at an average cost of $18.07 per share, totaling $2.9 million, primarily to cover income taxes on stock-based compensation vesting.

Key operational developments included an increase in core deposit accounts to $15.99 billion, representing 82.9% of total deposits, and a focus on expanding customer relationships. Non-interest income also increased to $109.8 million, driven by growth in fee income and insurance agency income. As of December 31, 2025, non-performing assets were $80.4 million, or 0.32% of total assets, compared to $81.5 million, or 0.34% of total assets, as of December 31, 2024. The company continues to emphasize conservative underwriting criteria, proactive monitoring, and active collection efforts. On January 26, 2026, the Company’s Board of Directors authorized the Company’s tenth stock repurchase program to commence upon completion of the existing authorization, allowing for the repurchase of an additional 2.0 million shares of common stock.