Provident Financial Services (NYSE:PFS) Releases Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Provident Financial Services (NYSE:PFS) announced its quarterly earnings data on Thursday. The savings and loans company reported $0.65 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.61 by $0.04, Briefing.com reports. The company had revenue of $238.53 million for the quarter, compared to analysts’ expectations of $235.31 million. Provident Financial Services had a net margin of 21.73% and a return on equity of 10.81%. During the same period in the previous year, the company posted $0.55 EPS.

Here are the key takeaways from Provident Financial Services’ conference call:

• Strong third-quarter profitability: Adjusted net income rose 17.5% year over year to $84 million, or $0.65 per share, while record operating revenue reached $238 million and adjusted PPNR increased 10% to nearly $120 million.
• Provident reported continued balance-sheet momentum, including 5.4% annualized deposit growth and 2.5% annualized loan growth; management maintained its 5%–6% full-year loan and deposit growth outlook and expects approximately 6% loan growth for the year.
• Credit quality remained favorable: Net charge-offs were just 5 basis points, commercial delinquencies improved, and management expects resolution of four senior-housing-related credits by year-end, which would reduce adjusted NPAs to approximately 23 basis points of assets.
• The bank completed its core conversion as planned, with management citing potential efficiency, data, artificial intelligence, and revenue benefits; Provident expects to maintain positive operating leverage while investing in these initiatives.
• Reported net income was reduced by $17.5 million in debt-extinguishment costs, $3.7 million of core-conversion expenses, and other one-time charges; management also expects deposit acquisition costs to remain elevated and fourth-quarter expenses to rise modestly with incentive accruals and final conversion costs.

Provident Financial Services Stock Performance

Shares of Provident Financial Services stock traded down $0.24 during trading hours on Friday, reaching $22.93. The company’s stock had a trading volume of 370,041 shares, compared to its average volume of 939,519. The stock has a market cap of $2.99 billion, a P/E ratio of 9.62 and a beta of 0.83. Provident Financial Services has a one year low of $17.70 and a one year high of $25.49. The company’s 50 day simple moving average is $22.89 and its 200 day simple moving average is $22.60. The company has a debt-to-equity ratio of 0.99, a quick ratio of 1.03 and a current ratio of 1.03.

Provident Financial Services Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 27th. Shareholders of record on Friday, November 13th will be issued a $0.24 dividend. This represents a $0.96 dividend on an annualized basis and a yield of 4.2%. The ex-dividend date of this dividend is Friday, November 13th. Provident Financial Services’s payout ratio is currently 40.00%.

Insider Activity

In related news, EVP Vito Giannola sold 20,000 shares of the stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $24.36, for a total value of $487,200.00. Following the completion of the transaction, the executive vice president owned 56,424 shares in the company, valued at $1,374,488.64. This represents a 26.17% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Thomas Shara sold 40,266 shares of the business’s stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $23.06, for a total value of $928,533.96. Following the completion of the sale, the director directly owned 382,911 shares in the company, valued at $8,829,927.66. This represents a 9.52% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 79,166 shares of company stock valued at $1,856,284. 3.02% of the stock is currently owned by company insiders.

Provident Financial Services News Summary

Here are the key news stories impacting Provident Financial Services this week:

• Positive Sentiment: Adjusted third-quarter earnings were $0.65 per share, exceeding the $0.61 consensus estimate, while revenue of $238.5 million also surpassed expectations of $235.3 million. Record net interest income and a reported $3 billion loan pipeline point to continued business momentum. Provident Financial Services Q3 2026 earnings
• Positive Sentiment: The board declared a quarterly cash dividend of $0.24 per share, payable November 27 to shareholders of record November 13. The $0.96 annualized payout represents an approximate 4.2% yield, supporting the stock’s income appeal. Provident Financial Services quarterly dividend announcement
• Positive Sentiment: Management reported nine-month 2026 net income of $226.7 million, or $1.74 per share, up from $207.7 million, or $1.59 per share, in the prior-year period. The company’s valuation also remains relatively modest, at roughly 9.7 times earnings based on the supplied market data.
• Neutral Sentiment: GAAP third-quarter net income declined to $69.2 million, or $0.53 per share, from $71.7 million, or $0.55 per share, a result that may create some headline pressure despite the stronger adjusted figures. Provident Financial Services third-quarter earnings
• Negative Sentiment: Quarterly results included a $17.5 million debt-extinguishment loss, $3.7 million of core-conversion costs and $465,000 in branch-restructuring expenses. These nonrecurring charges reduced reported profitability and remain the primary downside factor in the earnings release.

Analyst Ratings Changes

PFS has been the topic of a number of research reports. Hovde Group increased their price objective on shares of Provident Financial Services from $26.50 to $28.50 and gave the company an “outperform” rating in a research note on Friday, July 31st. Piper Sandler reaffirmed an “overweight” rating and issued a $29.00 target price (up from $26.00) on shares of Provident Financial Services in a research note on Friday, July 31st. DA Davidson set a $26.00 target price on Provident Financial Services in a research note on Friday, July 31st. Keefe, Bruyette & Woods reiterated an “outperform” rating and set a $28.00 price objective (up from $26.00) on shares of Provident Financial Services in a report on Monday, August 3rd. Finally, Weiss Ratings upgraded shares of Provident Financial Services from a “buy (b-)” rating to a “buy (b)” rating in a report on Friday, October 9th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, Provident Financial Services has an average rating of “Moderate Buy” and a consensus price target of $26.79.

About Provident Financial Services

Provident Financial Services, Inc is the parent company of Provident Bank, a full-service community and commercial bank serving individuals, businesses and organizations. The bank provides checking and savings accounts, certificates of deposit, treasury management and other deposit products, along with residential mortgage, commercial real estate, commercial business and consumer lending.

Through its banking and wealth-management operations, Provident offers services that may include investment management, trust and fiduciary services, financial planning and insurance solutions.