Exhibit

ISELIN, NJ, October 28, 2016 - Provident Financial Services, Inc. (NYSE:PFS) (the “Company”) reported net income of $22.9 million, or $0.36 per basic and diluted share, for the three months ended September 30, 2016, compared to net income of $20.6 million, or $0.33 per basic and diluted share, for the three months ended September 30, 2015. For the nine months ended September 30, 2016, the Company reported net income of $65.2 million, or $1.03 per basic share and $1.02 per diluted share, compared to net income of $62.2 million, or $0.99 per basic and diluted share for the same period last year.

The Company’s loan portfolio increased $352.9 million, or 5.4%, to $6.89 billion at September 30, 2016, from $6.54 billion at December 31, 2015. Loan originations totaled $2.3 billion and loan purchases totaled $28.6 million for the nine months ended September 30, 2016. The loan portfolio had net increases of $168.6 million in commercial mortgage loans, $150.5 million in multi-family mortgage loans and $119.8 million in commercial loans, partially offset by net decreases of $41.1 million in residential mortgage loans, $28.1 million in consumer loans and $14.8 million in construction loans. Commercial real estate, commercial and construction loans represented 74.6% of the loan portfolio at September 30, 2016, compared to 72.1% at December 31, 2015.

Stockholders’ equity increased $48.2 million, or 4.0% for the nine months ended September 30, 2016, to $1.24 billion, primarily due to net income earned for the period and an increase in unrealized gains on securities available for sale, partially offset by dividends paid to stockholders. Common stock repurchases made in connection with withholding to cover income taxes on the vesting of stock-based compensation for the nine months ended September 30, 2016 totaled 147,237 shares at an average cost of $18.46. At September 30, 2016, 3.2 million shares remained eligible for repurchase under the current authorization. Book value per share and tangible book value per share⁽¹⁾at September 30, 2016 were $18.84 and $12.43, respectively, compared with $18.26 and $11.75, respectively, at December 31, 2015.

For the three months ended September 30, 2016, net interest income increased $2.4 million to $65.0 million, from $62.5 million for the same period in 2015. Net interest income for the nine months ended September 30, 2016 increased $5.8 million, to $192.0 million, from $186.1 million for the same period in 2015. The improvement in net interest income was due to growth in average loans outstanding resulting from organic originations and increases in both average interest bearing core deposits and average non-interest bearing demand deposits, partially offset by period-over-period compression in the net interest margin. The growth in average core deposits mitigated the Company's need to utilize higher-cost sources to fund loan growth.

The Company’s net interest margin decreased six basis points to 3.05% for the quarter ended September 30, 2016, from 3.11% for the trailing quarter. The weighted average yield on interest-earning assets decreased seven basis points to 3.57% for the quarter ended September 30, 2016, compared with 3.64% for the quarter ended June 30, 2016. The weighted average cost of interest-bearing liabilities for the quarter ended September 30, 2016 decreased one basis point to 0.65%, compared with 0.66% for the trailing quarter. The average cost of interest bearing deposits for the quarter ended September 30, 2016 increased one basis point to 0.34%, from 0.33% for the quarter ended June 30, 2016. Average non-interest bearing demand deposits totaled $1.25 billion for the quarter ended September 30, 2016, compared with $1.21 billion for the quarter ended June 30, 2016. The average cost of borrowed funds for the quarter ended September 30, 2016 was 1.70%, compared with 1.72% for the trailing quarter.

The net interest margin decreased eight basis points to 3.05% for the quarter ended September 30, 2016, compared with 3.13% for the quarter ended September 30, 2015. The weighted average yield on interest-earning assets decreased nine basis points to 3.57% for the quarter ended September 30, 2016, compared with 3.66% for the quarter ended September 30, 2015, while the weighted average cost of interest bearing liabilities remained unchanged at 0.65% for the quarter ended September 30, 2016, compared to the third quarter of 2015. The average cost of interest bearing deposits for the quarter ended September 30, 2016 was 0.34%, compared with 0.31% for the same period last year. Average non-interest bearing demand deposits totaled $1.25 billion for the quarter ended September 30, 2016, compared with $1.15 billion for the quarter ended September 30, 2015. The average cost of borrowed funds for the quarter ended September 30, 2016 was 1.70%, compared with 1.61% for the same period last year.

For the nine months ended September 30, 2016, the net interest margin decreased eight basis points to 3.10%, compared with 3.18% for the nine months ended September 30, 2015. The weighted average yield on interest earning assets declined nine basis points to 3.63% for the nine months ended September 30, 2016, compared with 3.72% for the nine months ended September 30, 2015, while the weighted average cost of interest bearing liabilities remained unchanged at 0.66% for the nine months ended September 30, 2016, compared to the nine months ended September 30, 2015. The average cost of interest bearing deposits for the nine months ended September 30, 2016

Non-interest income totaled $14.1 million for the quarter ended September 30, 2016, an increase of $2.0 million, or 16.2%, compared to the same period in 2015. Other income increased $2.5 million for the three months ended September 30, 2016, compared to the same period in 2015, largely due to a $1.2 million increase in net gains on loan sales, an $876,000 increase in net fees on loan-level interest rate swap transactions and a $354,000 increase in net gains on the sale of foreclosed real estate. Wealth management income decreased $488,000 to $4.3 million for the three months ended September 30, 2016, compared to $4.8 million for the same period in 2015. The decrease in wealth management income was primarily due to a shift in the mix of assets under management which negatively impacted fees earned, along with a reduction in income associated with the licensing of indices to exchange traded fund ("ETF") providers. Fee income decreased $93,000 to $6.1 million for the three months ended September 30, 2016, compared to $6.2 million for the same period in 2015, largely due to a $191,000 decrease in commercial loan prepayment fee income, partially offset by a $96,000 increase in deposit related fee income. Net gains on securities transactions decreased $48,000 for the three months ended September 30, 2016, compared to the same period in 2015.

For the nine months ended September 30, 2016, non-interest income totaled $40.9 million, an increase of $1.6 million, or 3.9%, compared to the same period in 2015. Other income increased $1.5 million to $4.4 million for the nine months ended September 30, 2016, compared with the same period in 2015, largely due to a $1.4 million increase in net gains on loan sales, a $432,000 increase in net gains on the sale of foreclosed real estate, and a $335,000 gain recognized on the sale of deposits resulting from a strategic branch divestiture, partially offset by a $1.4 million decrease in net fees on loan-level interest rate swap transactions. Also contributing to the increase in non-interest income, wealth management income increased $679,000 to $13.1 million for the nine months ended September 30, 2016, largely due to fees from assets under management acquired in the MDE acquisition, which closed April 1, 2015. This increase in wealth management income was offset in part by a reduction in income associated with the licensing of indices to ETF providers. Partially offsetting these increases in non-interest income, net gains on securities transactions and fee income decreased $596,000 and $156,000, respectively, for the nine months ended September 30, 2016, compared to the same period in 2015. The decrease in fee income was largely due to a $1.1 million decrease in commercial loan prepayment fee income, partially offset by increases in both deposit and loan-related fee income.

For the three months ended September 30, 2016, non-interest expense increased $2.2 million to $45.9 million, compared to the three months ended September 30, 2015. Compensation and benefits expense increased $1.9 million to $26.7 million for the three months ended September 30, 2016, compared to $24.8 million for the same period in 2015. This increase was principally due to additional salary expense related to annual merit increases, and an increase in the accrual for incentive compensation, partially offset by a decrease in stock-based compensation. Other operating expenses increased $377,000 to $6.9 million for the three months ended September 30, 2016, compared to the same period in 2015, largely due to an increase in legal expense and an increase in debit card expense related to the Company's issuance of chip-enabled debit cards. In addition, advertising and promotion expenses increased $189,000 to $787,000 for the three months ended September 30, 2016, compared to the same period in 2015, largely due to the timing of the Company's advertising campaigns. Partially offsetting these increases in non-interest expense, the amortization of intangibles decreased $245,000 for the three months ended September 30, 2016, compared with the same period in 2015, as a result of scheduled reductions in amortization. Additionally, FDIC insurance expense decreased $156,000 to $1.1 million for three months ended September 30, 2016, compared to $1.3 million for the same period in 2015. This decrease was due to the FDIC's reduction of assessment rates for depository institutions with less than $10.0 billion in assets, effective for the quarter ended September 30, 2016. The decrease in the FDIC assessment rate was partially offset by an increase in the Company's total assets subject to assessment.

Non-interest expense for the nine months ended September 30, 2016 was $136.6 million, an increase of $3.5 million from $133.2 million for the nine months ended September 30, 2015. Compensation and benefits expense increased $5.1 million to $78.5 million for the nine months ended September 30, 2016, compared to $73.4 million for the nine months ended September 30, 2015, due to increased salary expense associated with new employees from MDE, additional salary expense associated with annual merit increases, an increase in the accrual for incentive compensation and an increase in employee medical and retirement benefit costs. In addition, data processing expense increased $420,000 to $9.8 million for the nine months ended September 30, 2016, compared to $9.4 million for the same period in 2015, principally due to an increase in software maintenance costs. Net occupancy costs decreased $1.2 million, to $18.7 million for the nine months ended September 30, 2016, compared to the same period in 2015, principally due to a decrease in seasonal expenses resulting from a milder winter, combined with decreases in facilities and equipment maintenance expenses. The amortization of intangibles decreased $435,000 for the nine months ended September 30, 2016, compared with the same period in 2015, as a result of scheduled reductions in amortization. In addition, other operating expenses decreased $217,000 to $20.6 million for the nine months ended September 30, 2016, compared to the same period in 2015, largely due to $413,000 of non-recurring professional services costs associated with the MDE transaction for the nine months ended September 30, 2015, partially offset by an increases in debit card maintenance costs, foreclosed real estate expense and non-performing asset-related expenses. Advertising and promotion expenses decreased $173,000 to $2.6 million for the nine months ended September 30, 2016, compared to the same period in 2015, largely due to the timing of the Company's advertising campaigns.

The Company’s total non-performing loans at September 30, 2016 were $40.0 million, or 0.58% of total loans, compared with $43.0 million, or 0.63% of total loans at June 30, 2016 and $39.6 million, or 0.62% of total loans at September 30, 2015. The $3.0 million decrease in non-performing loans at September 30, 2016, compared with the trailing quarter, was due to a $1.8 million decrease in non-performing residential mortgage loans, a $1.5 million decrease in non-performing commercial loans, a $777,000 decrease in non-performing multi-family loans and a $423,000 decrease in non-performing consumer loans, partially offset by a $1.4 million increase in non-performing commercial mortgage loans and a $175,000 increase in non-performing construction loans. At September 30, 2016, impaired loans totaled $44.4 million with related specific reserves of $2.1 million, compared with impaired loans totaling $45.3 million with related specific reserves of $2.3 million at June 30, 2016. At September 30, 2015, impaired loans totaled $67.9 million with related specific reserves of $2.4 million.

At September 30, 2016, the Company’s allowance for loan losses was 0.89% of total loans, a decrease from 0.90% at June 30, 2016, and a decrease from 0.94% of total loans at September 30, 2015. The decline in this loan coverage ratio from the quarter ended September 30, 2015, was largely the result of an overall improvement in asset quality. The Company recorded provisions for loan losses of $1.0 million and $4.2 million for the three and nine months ended September 30, 2016, respectively, compared with provisions of $1.4 million and $3.1 million for the three and nine months ended September 30, 2015, respectively. For the three and nine months ended September 30, 2016, the Company had net charge-offs of $845,000 and $4.5 million, respectively, compared with net charge-offs of $560,000 and $4.4 million, respectively, for the same periods in 2015. The allowance for loan losses decreased $336,000 to $61.1 million at September 30, 2016, from $61.4 million at December 31, 2015.

At September 30, 2016 and December 31, 2015, the Company held $10.1 million and $10.5 million of foreclosed assets, respectively. During the nine months ended September 30, 2016, there were 19 additions to foreclosed assets with a carrying value of $3.1 million and 21 properties sold with a carrying value of $2.9 million. Foreclosed assets at September 30, 2016 consisted of $5.5 million of residential real estate, $4.4 million of commercial real estate and $139,000 of marine vessels. Total non-performing assets at September 30, 2016 decreased $5.0 million, or 9.0%, to $50.1 million, or 0.53% of total assets, from $55.1 million, or 0.62% of total assets at December 31, 2015.

For the three and nine months ended September 30, 2016, the Company’s income tax expense was $9.3 million and $26.8 million, respectively, compared with $9.0 million and $27.0 million, for the three and nine months ended September 30, 2015, respectively. The Company’s effective tax rates were 28.8% and 29.1% for the three and nine months ended September 30, 2016, respectively, compared with 30.5% and 30.3% for the three and nine months ended September 30, 2015, respectively, as a greater proportion of income was derived from non-taxable sources in the current year periods. Also, in the third quarter of 2016, the Company adopted Accounting Standards Update ("ASU”) No. 2016-09, "Compensation - Stock Compensation (Topic 718)." The adoption of this ASU resulted in a $252,000 decrease in income tax expense for the three and nine months ended September 30, 2016, and reduced the effective tax rates for the three and nine months ended September 30, 2016, by 79 basis points and 27 basis points, respectively.

Certain statements contained herein are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those set forth in Item 1A of the Company's Annual Report on Form 10-K, as supplemented by its quarterly reports on Form 10-Q, and those related to the economic environment, particularly in the market areas in which the Company operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets and the availability of and costs associated with sources of liquidity.




PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Financial Condition
September 30, 2016 (Unaudited) and December 31, 2015
(Dollars in Thousands)

Assets	September 30, 2016			December 31, 2015

Cash and due from banks	$	117,348		$	100,899
Short-term investments	42,326			1,327
Total cash and cash equivalents	159,674			102,226

Securities available for sale, at fair value	1,032,235			964,534
Investment securities held to maturity (fair value of $495,516 at September 30, 2016 (unaudited) and $488,331 at December 31, 2015)	476,359			473,684
Federal Home Loan Bank Stock	71,019			78,181
Loans	6,890,586			6,537,674
Less allowance for loan losses	61,088			61,424
Net loans	6,829,498			6,476,250
Foreclosed assets, net	10,087			10,546
Banking premises and equipment, net	85,207			88,987
Accrued interest receivable	25,305			25,766
Intangible assets	423,678			426,277
Bank-owned life insurance	187,140			183,057
Other assets	89,799			82,149
Total assets	$	9,390,001		$	8,911,657

Liabilities and Stockholders' Equity

Deposits:
Demand deposits	$	4,784,360		$	4,198,788
Savings deposits	1,074,708			985,478
Certificates of deposit of $100,000 or more	293,085			324,215
Other time deposits	375,345			415,506
Total deposits	6,527,498			5,923,987
Mortgage escrow deposits	24,285			23,345
Borrowed funds	1,522,368			1,707,632
Other liabilities	71,570			60,628
Total liabilities	8,145,721			7,715,592

Stockholders' equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued	—			—
Common stock, $0.01 par value, 200,000,000 shares authorized, 83,209,293 shares issued and 66,028,442 outstanding at September 30, 2016 and 65,489,354 outstanding at December 31, 2015	832			832
Additional paid-in capital	1,003,837			1,000,810
Retained earnings	538,429			507,713
Accumulated other comprehensive income (loss)	5,974			(2,546		)
Treasury stock	(265,078		)	(269,014		)
Unallocated common stock held by the Employee Stock Ownership Plan	(39,714		)	(41,730		)
Common Stock acquired by the Directors' Deferred Fee Plan	(6,014		)	(6,517		)
Deferred Compensation - Directors' Deferred Fee Plan	6,014			6,517
Total stockholders' equity	1,244,280			1,196,065
Total liabilities and stockholders' equity	$	9,390,001		$	8,911,657



PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Income
Three and Nine Months Ended September 30, 2016 and 2015 (Unaudited)
(Dollars in Thousands, except per share data)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2016			2015			2016		2015
Interest income:
Real estate secured loans	$	45,262		$	44,541		$	134,411	$	131,424
Commercial loans	16,093			13,767			46,419		40,875
Consumer loans	5,627			5,646			16,657		17,234
Securities available for sale and Federal Home Loan Bank stock	5,576			5,672			17,074		17,708
Investment securities held to maturity	3,349			3,368			10,011		10,150
Deposits, federal funds sold and other short-term investments	138			19			252		41
Total interest income	76,045			73,013			224,824		217,432

Interest expense:
Deposits	4,441			3,639			12,397		10,851
Borrowed funds	6,633			6,827			20,477		20,432
Total interest expense	11,074			10,466			32,874		31,283
Net interest income	64,971			62,547			191,950		186,149
Provision for loan losses	1,000			1,400			4,200		3,100
Net interest income after provision for loan losses	63,971			61,147			187,750		183,049

Non-interest income:
Fees	6,137			6,230			19,309		19,465
Wealth management income	4,262			4,750			13,084		12,405
Bank-owned life insurance	1,382			1,248			4,083		3,913
Net (loss) gain on securities transactions	(43		)	5			54		650
Other income (expense)	2,328			(123		)	4,378		2,922
Total non-interest income	14,066			12,110			40,908		39,355

Non-interest expense:
Compensation and employee benefits	26,725			24,784			78,496		73,399
Net occupancy expense	6,227			6,186			18,729		19,935
Data processing expense	3,328			3,239			9,845		9,425
FDIC Insurance	1,117			1,273			3,732		3,763
Amortization of intangibles	767			1,012			2,628		3,063
Advertising and promotion expense	787			598			2,567		2,740
Other operating expenses	6,899			6,522			20,628		20,845
Total non-interest expense	45,850			43,614			136,625		133,170
Income before income tax expense	32,187			29,643			92,033		89,234
Income tax expense	9,281			9,034			26,798		27,027
Net income	$	22,906		$	20,609		$	65,235	$	62,207

Basic earnings per share	$	0.36		$	0.33		$	1.03	$	0.99
Average basic shares outstanding	63,728,393			63,034,185			63,545,065		62,868,745

Diluted earnings per share	$	0.36		$	0.33		$	1.02	$	0.99
Average diluted shares outstanding	63,934,886			63,198,299			63,727,723		63,029,389



PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Financial Highlights
(Dollars in Thousands, except share data) (Unaudited)

	At or for the						At or for the
	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
STATEMENTS OF INCOME:
Net interest income	$	64,971		$	62,547		$	191,950		$	186,149
Provision for loan losses	1,000			1,400			4,200			3,100
Non-interest income	14,066			12,110			40,908			39,355
Non-interest expense	45,850			43,614			136,625			133,170
Income before income tax expense	32,187			29,643			92,033			89,234
Net income	22,906			20,609			65,235			62,207
Diluted earnings per share		$0.36			$0.33			$1.02			$0.99
Interest rate spread	2.92		%	3.01		%	2.97		%	3.06		%
Net interest margin	3.05		%	3.13		%	3.10		%	3.18		%

PROFITABILITY:
Annualized return on average assets	0.98		%	0.93		%	0.95		%	0.96		%
Annualized return on average equity	7.33		%	6.93		%	7.11		%	7.11		%
Annualized return on average tangible equity ⁽²⁾	11.13		%	10.93		%	10.88		%	11.12		%
Annualized non-interest expense to average assets ⁽³⁾	1.96		%	1.97		%	2.00		%	2.06		%
Annualized core non-interest expense to average assets ⁽³⁾	1.96		%	1.97		%	2.00		%	2.05		%
Efficiency ratio⁽⁴⁾	58.01		%	58.42		%	58.67		%	59.05		%
Core efficiency ratio ⁽⁴⁾	58.01		%	58.42		%	58.67		%	58.87		%

ASSET QUALITY:
Non-accrual loans							$	40,016		$	39,634
90+ and still accruing							—			—
Non-performing loans							40,016			39,634
Foreclosed assets							10,087			10,128
Non-performing assets							50,103			49,762
Non-performing loans to total loans							0.58		%	0.62		%
Non-performing assets to total assets							0.53		%	0.56		%
Allowance for loan losses							$	61,088		$	60,464
Allowance for loan losses to total non-performing loans							152.66		%	152.56		%
Allowance for loan losses to total loans							0.89		%	0.94		%

AVERAGE BALANCE SHEET DATA:
Assets	$	9,328,946		$	8,776,667		$	9,133,000		$	8,640,000
Loans, net	6,730,854			6,282,018			6,607,963			6,154,229
Earning assets	8,420,908			7,890,101			8,224,380			7,769,306
Core deposits	5,746,057			5,067,217			5,480,122			5,029,289
Borrowings	1,550,148			1,684,659			1,600,023			1,580,080
Interest-bearing liabilities	6,748,118			6,377,944			6,610,432			6,302,058
Stockholders' equity	1,242,710			1,180,426			1,226,011			1,169,134
Average yield on interest-earning assets	3.57		%	3.66		%	3.63		%	3.72		%
Average cost of interest-bearing liabilities	0.65		%	0.65		%	0.66		%	0.66		%

LOAN DATA:
Mortgage loans:
Residential							$	1,214,095		$	1,258,009
Commercial							1,884,699			1,777,193
Multi-family							1,384,541			1,193,730
Construction							316,803			302,302
Total mortgage loans							4,800,138			4,531,234
Commercial loans							1,554,052			1,325,077
Consumer loans							538,061			575,715
Total gross loans							6,892,251			6,432,026
Premium on purchased loans							5,330			5,711
Unearned discounts							(39		)	(44		)
Net deferred							(6,956		)	(6,749		)
Total loans							$	6,890,586		$	6,430,944



Notes and Reconciliation of GAAP to Non-GAAP Financial Measures - (Dollars in Thousands, except share data)

(1) Book and Tangible Book Value per Share
							At September 30,
							2016			2015
Total stockholders' equity							$	1,244,280		$	1,183,973
Less: total intangible assets							423,678			429,001
Total tangible stockholders' equity							$	820,602		$	754,972

Shares outstanding							66,028,442			65,378,205

Book value per share (total stockholders' equity/shares outstanding)								$18.84			$18.11
Tangible book value per share (total tangible stockholders' equity/shares outstanding)								$12.43			$11.55

(2) Annualized Return on Average Tangible Equity
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
Total average stockholders' equity	$	1,242,710		$	1,180,426		$	1,226,011		$	1,169,134
Less: total average intangible assets	424,151			432,472			424,993			421,418
Total average tangible stockholders' equity	$	818,559		$	747,954		$	801,018		$	747,716

Net income	$	22,906		$	20,609		$	65,235		$	62,207

Annualized return on average tangible equity (net income/total average stockholders' equity)	11.13		%	10.93		%	10.88		%	11.12		%

(3) Annualized Non-Interest Expense/Average Assets Calculation
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
Total non-interest expense	45,850			43,614			136,625			133,170
Less: non-recurring MDE acquisition expense	—			—			—			413
Core non-interest expense	$	45,850		$	43,614		$	136,625		$	132,757

Average assets	$	9,328,946		$	8,776,667		$	9,133,000		$	8,640,000

Annualized non-interest expense/average assets	1.96		%	1.97		%	2.00		%	2.06		%
Annualized core non-interest expense/average assets	1.96		%	1.97		%	2.00		%	2.05		%

(4) Efficiency Ratio Calculation
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
Net interest income	$	64,971		$	62,547		$	191,950		$	186,149
Non-interest income	14,066			12,110			40,908			39,355
Total income	$	79,037		$	74,657		$	232,858		$	225,504

Non-interest expense	45,850			43,614			136,625			133,170
Less: non-recurring MDE acquisition expense	—			—			—			413
Core non-interest expense	$	45,850		$	43,614		$	136,625		$	132,757

Efficiency ratio (non-interest expense/income)	58.01		%	58.42		%	58.67		%	59.05		%
Core efficiency ratio (core non-interest expense/income)	58.01		%	58.42		%	58.67		%	58.87		%



PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Quarterly Average Balances
(Unaudited) (Dollars in Thousands)

	September 30, 2016					June 30, 2016
	Average				Average	Average				Average
	Balance		Interest		Yield/Cost	Balance		Interest		Yield/Cost
Interest-Earning Assets:
Deposits	$	109,260	$	136	0.48%	$	57,045	$	72	0.51%
Federal funds sold and other short-term investments	1,834		2		0.44%	1,582		—		0.06%
Investment securities ⁽¹⁾	482,020		3,349		2.78%	476,492		3,331		2.80%
Securities available for sale	1,024,821		4,717		1.84%	999,750		4,861		1.95%
Federal Home Loan Bank stock	72,119		859		4.73%	72,683		857		4.73%
Net loans: ⁽²⁾
Total mortgage loans	4,711,610		45,262		3.80%	4,596,722		44,916		3.89%
Total commercial loans	1,475,262		16,093		4.29%	1,437,994		15,374		4.25%
Total consumer loans	543,982		5,627		4.12%	553,691		5,394		3.92%
Total net loans	6,730,854		66,982		3.93%	6,588,407		65,684		3.97%
Total Interest-Earning Assets	$	8,420,908	$	76,045	3.57%	$	8,195,959	$	74,805	3.64%

Non-Interest Earning Assets:
Cash and due from banks	99,185					104,823
Other assets	808,853					806,514
Total Assets	$	9,328,946				$	9,107,296

Interest-Bearing Liabilities:
Demand deposits	$	3,419,978	$	2,691	0.31%	$	3,219,568	$	2,404	0.30%
Savings deposits	1,074,963		508		0.19%	1,033,385		390		0.15%
Time deposits	703,029		1,242		0.70%	761,361		1,341		0.71%
Total Deposits	5,197,970		4,441		0.34%	5,014,314		4,135		0.33%

Borrowed funds	1,550,148		6,633		1.70%	1,581,576		6,760		1.72%
Total Interest-Bearing Liabilities	6,748,118		11,074		0.65%	6,595,890		10,895		0.66%

Non-Interest Bearing Liabilities:
Non-interest bearing deposits	1,251,116					1,208,091
Other non-interest bearing liabilities	87,002					78,387
Total non-interest bearing liabilities	1,338,118					1,286,478
Total Liabilities	8,086,236					7,882,368
Stockholders' equity	1,242,710					1,224,928
Total Liabilities and Stockholders' Equity	$	9,328,946				$	9,107,296

Net interest income			$	64,971				$	63,910

Net interest rate spread					2.92%					2.98%
Net interest-earning assets	$	1,672,790				$	1,600,069

Net interest margin ⁽³⁾					3.05%					3.11%
Ratio of interest-earning assets to
total interest-bearing liabilities	1.25x					1.24x



The following table summarizes the quarterly net interest margin for the previous five quarters.

	9/30/16		6/30/16		3/31/16		12/31/15		09/30/15
	3rd Qtr.		2nd Qtr.		1st Qtr.		4th Qtr.		3rd Qtr.
Interest-Earning Assets:
Securities	2.14	%	2.27	%	2.36	%	2.33	%	2.26	%
Net loans	3.93	%	3.97	%	3.97	%	4.03	%	4.02	%
Total interest-earning assets	3.57	%	3.64	%	3.66	%	3.70	%	3.66	%

Interest-Bearing Liabilities:
Total deposits	0.34	%	0.33	%	0.32	%	0.31	%	0.31	%
Total borrowings	1.70	%	1.72	%	1.71	%	1.65	%	1.61	%
Total interest-bearing liabilities	0.65	%	0.66	%	0.68	%	0.66	%	0.65	%

Interest rate spread	2.92	%	2.98	%	2.98	%	3.04	%	3.01	%
Net interest margin	3.05	%	3.11	%	3.11	%	3.17	%	3.13	%

Ratio of interest-earning assets to interest-bearing liabilities	1.25x		1.24x		1.24x		1.24x		1.24x



PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Average Year to Date Balances
(Unaudited) (Dollars in Thousands)

	September 30, 2016					September 30, 2015
	Average				Average	Average				Average
	Balance		Interest		Yield/Cost	Balance		Interest		Yield/Cost
Interest-Earning Assets:
Deposits	$	66,671	$	248	0.50%	$	22,114	$	41	0.25%
Federal funds sold and other short term investments	1,619		4		0.20%	1,399		—		0.04%
Investment securities ⁽¹⁾	477,564		10,011		2.79%	473,566		10,150		2.86%
Securities available for sale	996,790		14,464		1.94%	1,045,938		15,401		1.96%
Federal Home Loan Bank stock	73,773		2,610		5.31%	72,060		2,307		4.28%
Net loans: ⁽²⁾
Total mortgage loans	4,617,611		134,411		3.85%	4,330,326		131,424		4.02%
Total commercial loans	1,437,716		46,419		4.27%	1,230,402		40,875		4.41%
Total consumer loans	552,636		16,657		4.02%	593,501		17,234		3.88%
Total net loans	6,607,963		197,487		3.96%	6,154,229		189,533		4.09%
Total Interest-Earning Assets	$	8,224,380	$	224,824	3.63%	$	7,769,306	$	217,432	3.72%

Non-Interest Earning Assets:
Cash and due from banks	100,833					79,853
Other assets	807,787					790,841
Total Assets	$	9,133,000				$	8,640,000

Interest-Bearing Liabilities:
Demand deposits	$	3,231,073	$	7,284	0.30%	$	2,942,981	$	5,937	0.27%
Savings deposits	1,033,281		1,184		0.15%	986,756		768		0.10%
Time deposits	746,055		3,929		0.70%	792,241		4,146		0.70%
Total Deposits	5,010,409		12,397		0.33%	4,721,978		10,851		0.31%
Borrowed funds	1,600,023		20,477		1.71%	1,580,080		20,432		1.73%
Total Interest-Bearing Liabilities	$	6,610,432	$	32,874	0.66%	$	6,302,058	$	31,283	0.66%

Non-Interest Bearing Liabilities:
Non-interest bearing deposits	1,215,768					1,099,552
Other non-interest bearing liabilities	80,789					69,256
Total non-interest bearing liabilities	1,296,557					1,168,808
Total Liabilities	7,906,989					7,470,866
Stockholders' equity	1,226,011					1,169,134
Total Liabilities and Stockholders' Equity	$	9,133,000				$	8,640,000

Net interest income			$	191,950				$	186,149

Net interest rate spread					2.97%					3.06%
Net interest-earning assets	$	1,613,948				$	1,467,248

Net interest margin ⁽³⁾					3.10%					3.18%
Ratio of interest-earning assets to
total interest-bearing liabilities	1.24x					1.23x

(1) Average outstanding balance amounts shown are amortized cost.

(2) Average outstanding balance are net of the allowance for loan losses, deferred loan fees and expenses, loan premium and discounts and include non-accrual loans.

(3) Annualized net interest income divided by average interest-earning assets.



The following table summarizes the year-to-date net interest margin for the previous three years.

	Nine Months Ended
	9/30/2016		9/30/2015		9/30/2014
Interest-Earning Assets:
Securities	2.28	%	2.33	%	2.37	%
Net loans	3.96	%	4.09	%	4.27	%
Total interest-earning assets	3.63	%	3.72	%	3.84	%

Interest-Bearing Liabilities:
Total deposits	0.33	%	0.31	%	0.34	%
Total borrowings	1.71	%	1.73	%	1.90	%
Total interest-bearing liabilities	0.66	%	0.66	%	0.69	%

Interest rate spread	2.97	%	3.06	%	3.15	%
Net interest margin	3.10	%	3.18	%	3.27	%

Ratio of interest-earning assets to interest-bearing liabilities	1.24x		1.23x		1.22x




(1)	Average outstanding balance amounts shown are amortized cost.
(2)	Average outstanding balances are net of the allowance for loan losses, deferred loan fees and expenses, loan premiums and discounts and include non-accrual loans.
(3)	Annualized net interest income divided by average interest-earning assets.