- Provident Financial Services (PFS, Financial) reported a 99% year-over-year increase in Q1 2025 net income to $64.0 million, or $0.49 per share.
- The commercial and industrial loan portfolio grew by $74.3 million to $4.68 billion, with a net interest margin rise by 6 basis points to 3.34%.
- A quarterly cash dividend of $0.24 per share was declared, payable on May 30, 2025.
Provident Financial Services, Inc. (PFS) announced strong financial results for Q1 2025, showcasing robust growth and strategic advancements. The company reported a net income of $64.0 million, or $0.49 per share, reflecting a 99% increase compared to the same period last year.
The company's net interest margin improved significantly to 3.34%, marking a 6 basis point increase from the previous quarter. This improvement was attributed to favorable deposit repricing, with the average cost of total deposits decreasing by 14 basis points to 2.11%.
The commercial and industrial (C&I) loan portfolio saw substantial growth, rising by $74.3 million to reach $4.68 billion. Overall, the total commercial portfolio increased by $150 million, reaching a total of $16.19 billion, indicating a strong demand for commercial lending services.
Non-interest income also witnessed growth, with insurance agency income rising by 17.9% year-over-year. This contributed to an increase in non-interest income by $2.9 million compared to the previous quarter.
The company recorded a $2.7 million write-down on a foreclosed property; however, this was partially offset by a $624,000 profit from branch consolidation sales, demonstrating effective asset management strategies.
Provident Financial Services declared a quarterly cash dividend of $0.24 per share, which will be payable on May 30, 2025, to shareholders of record as of May 16, 2025.
Looking ahead, Provident Financial Services maintains a positive outlook, buoyed by a $2.77 billion loan pipeline and a weighted average interest rate of 6.31%, indicating potential for continued growth.
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