ISELIN, N.J. - Provident Financial Services, Inc. (NYSE:PFS), the holding company for Provident Bank, disclosed its financial results for the first quarter of 2024, reporting a net income of $32.1 million, equating to $0.43 per basic and diluted share.
This figure compares to a net income of $27.3 million, or $0.36 per basic and diluted share, for the previous quarter ending December 31, 2023, and $40.5 million, or $0.54 per basic and diluted share, for the same period in the prior year.
The bank's net interest income for the first quarter was $93.7 million, a decrease from the previous quarter's $95.8 million. This decline was attributed to one fewer day in the quarter and higher funding costs outpacing the benefits of favorable loan repricing. Provident's net interest margin also contracted to 2.87% from 2.92% in the trailing quarter.
Commercial and industrial (C&I) loans saw growth, with the portfolio increasing by $72.1 million to $2.51 billion as of March 31, 2024. The asset quality showed improvement, with non-performing loans declining to $47.6 million or 0.44% of total loans, compared to $49.6 million or 0.46% as of December 31, 2023.
Regarding non-interest income, the bank experienced increases in wealth management and insurance agency income, contributing to a total non-interest income of $20.8 million for the quarter, which is higher than the trailing quarter's $18.2 million.
Provident's non-interest expense for the first quarter decreased to $71.3 million, down from $74.5 million in the previous quarter, primarily due to lower litigation reserves and foreclosed property write-downs.
The company's Board of Directors declared a quarterly cash dividend of $0.24 per common share, payable on May 31, 2024, to stockholders of record as of April 29, 2024.
Anthony J. Labozzetta, President and Chief Executive Officer, remarked on the company's robust operating performance and strong asset quality in the face of ongoing pressure on funding costs and net interest margin.
He also commented on the progress of the pending merger with Lakeland Bancorp (NASDAQ:LBAI), Inc., noting that all regulatory approvals have been received and the subordinated debt offering is moving forward.
These results are based on a press release statement and reflect the financial performance of Provident Financial Services, Inc. for the first quarter of 2024.
InvestingPro Insights
Provident Financial Services, Inc. (NYSE:PFS) has demonstrated resilience with a steady performance in the first quarter of 2024. Here are some key metrics and tips from InvestingPro that investors may find valuable when assessing the company's financial health and future prospects:
InvestingPro Data:
- The company has a market capitalization of approximately $1.04 billion, reflecting its size and stability within the financial sector.
- With a Price-to-Earnings (P/E) ratio of 8, and an adjusted P/E ratio for the last twelve months as of Q4 2023 at 7.74, PFS trades at a valuation that suggests potential undervaluation compared to industry peers.
- The dividend yield as of the beginning of April 2024 stands at a significant 7.05%, which is attractive to income-focused investors.
InvestingPro Tips:
- Analysts have revised their earnings expectations upwards for the upcoming period, indicating a positive outlook on the company's profitability.
- Provident Financial Services has a commendable track record of maintaining dividend payments for 22 consecutive years, underscoring its commitment to shareholder returns.
These insights are just a glimpse of what InvestingPro has to offer. For a deeper dive into Provident Financial Services' financials and for more InvestingPro Tips, visit https://www.investing.com/pro/PFS. Additionally, there are 6 more tips available on InvestingPro for investors who are looking for a comprehensive analysis. Don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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