Provident Financial Services, Inc. Q3 2026 Earnings Recap

Provident reported record revenue and higher adjusted earnings, while loan growth and deposit growth remained positive. The stock was roughly flat after earnings (+0.3%), a neutral market reaction to results that also included rising deposit costs and modest core-margin expansion expectations.

Key Takeaways

• Adjusted net income was $84 million, or $0.65 per diluted share, up 17.5% year over year; reported net income was $69 million, or $0.53 per share, after non-core charges including a $17.5 million debt-extinguishment loss and $3.7 million in core-conversion costs.
• Revenue reached a record $238 million, including record net interest income of $208 million. Core net interest margin expanded 7 basis points to 3.16%; management expects only 1–2 basis points of core-margin expansion in the fourth quarter.
• Period-end deposits grew $262 million, or 5.4% annualized, and the loan-to-deposit ratio improved to 101.8%. However, total deposit costs rose 10 basis points quarter over quarter to 2.02%.
• Commercial loans grew 3% annualized in the quarter. Management is pacing toward approximately 6% loan growth for the year, while noting that fourth-quarter payoffs could affect net growth.
• Asset quality remained stable: non-performing assets were 55 basis points of total assets, and net charge-offs were 5 basis points for the quarter. The provision for credit losses was $5.2 million.