Provident Financial Services, Inc. Reports Second Quarter 2024 Results Inclusive of Merger-Related Costs and Declares Quarterly Cash Dividend

ISELIN, NJ, July 26, 2024 - Provident Financial Services, Inc. (NYSE:PFS) (the “Company”) reported a net loss of $11.5 million, or $0.11 per basic and diluted share for the three months ended June 30, 2024, compared to net income of $32.1 million, or $0.43 per basic and diluted share, for the three months ended March 31, 2024 and $32.0 million, or $0.43 per basic and diluted share, for the three months ended June 30, 2023. For the six months ended June 30, 2024, net income totaled $20.6 million, or $0.23 per basic and diluted share, compared to $72.5 million, or $0.97 per basic and diluted share, for the six months ended June 30, 2023.

On May 16, 2024, the Company completed its merger with Lakeland Bancorp, Inc. (“Lakeland”), which added $10.91 billion to total assets, $7.91 billion to loans, and $8.62 billion to deposits, net of purchase accounting adjustments. The Company’s earnings for the three and six months ended June 30, 2024 were impacted by an initial CECL provision for credit losses on loans and commitments to extend credit of $65.2 million recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. The results of operations for the three and six months ended June 30, 2024 also included other transaction costs related to the merger with Lakeland totaling $18.9 million and $21.1 million, respectively, compared with transaction costs totaling $2.0 million and $3.1 million for the respective 2023 periods. Additionally, the Company realized a $2.8 million loss related to the sale in the current quarter of subordinated debt issued by Lakeland from its investment portfolio.

Anthony J. Labozzetta, President and Chief Executive Officer commented, “We are pleased with our performance this quarter, which featured the completion of our merger with Lakeland. While financial results reflect merger-related expenses, our core businesses, credit quality and risk management remain strong. Our fee-based wealth management and insurance agency teams performed well and are positioned to take advantage of our strengths as a larger organization. Our solid core performance, as demonstrated by our pre-tax pre-provision return on average assets, shows that the combined entity has a solid foundation and compelling prospects for the future.”

Regarding the Company's merger with Lakeland, Mr. Labozzetta added, “It is an exciting time for us as we have successfully closed the merger and welcomed the Lakeland team into Provident. We are grateful to our employees for their diligent efforts in completing the merger. As we approach systems conversion in September, we are pleased with how our cultures are integrating. Our teams are working together to broaden and deepen our relationships across a larger customer base through our complementary platforms of banking, insurance and wealth management.”

Performance Highlights for the Second Quarter of 2024

•The Company recorded a $66.1 million provision for credit losses on loans for the quarter ended June 30, 2024, compared to a $200,000 provision for the trailing quarter. The provision for credit losses on loans in the quarter was primarily attributable to an initial CECL provision for credit losses on loans of $60.1 million, recorded as part of the Lakeland merger. The allowance for credit losses as a percentage of loans increased to 1.00% as of June 30, 2024, from 0.98% as of March 31, 2024.

•The Company's annualized adjusted pre-tax, pre-provision returns on average assets, average equity and average tangible equity(1) were 1.47%, 13.26% and 19.21% for the quarter ended June 30, 2024, compared to 1.28%, 10.62% and 14.54% for the quarter ended March 31, 2024. A reconciliation between GAAP and the above non-GAAP ratios are shown on page 13 of the earnings release.

•The Company’s loans held for investment totaled $18.76 billion as of June 30, 2024, from $10.84 billion as of March 31, 2024. As part of the merger with Lakeland, we acquired $7.91 billion in loans, net of purchase accounting adjustments.

•The Company's deposits totaled $18.35 billion as of June 30, 2024, from $10.10 billion as of March 31, 2024. As part of the merger with Lakeland, we acquired $8.62 billion in deposits, net of purchase accounting adjustments. Excluding municipal and brokered deposits, organic deposits increased $123.0 million during the quarter.

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•Net interest income increased $47.8 million to $141.5 million for the three months ended June 30, 2024, from $93.7 million for the trailing quarter primarily due to the net assets acquired from Lakeland, including accretion of purchase accounting adjustments.

•The net interest margin increased 34 basis points to 3.21% for the quarter ended June 30, 2024, from 2.87% for the trailing quarter. The weighted average yield on interest-earning assets for the quarter ended June 30, 2024 increased 61 basis points to 5.67%, compared to the trailing quarter, while the weighted average cost of interest-bearing liabilities for the quarter ended June 30, 2024 increased 29 basis points to 3.09%, compared to the trailing quarter. The increases in both the yield on interest-earning assets and cost of interest-bearing liabilities were primarily due to the net assets and liabilities acquired from Lakeland, including accretion of purchase accounting adjustments which contributed approximately 47 basis points to the net interest margin in the current quarter.

•As of June 30, 2024, the Company's loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $1.67 billion, with a weighted average interest rate of 7.53%, compared to $1.08 billion, with a weighted average interest rate of 7.42%, as of March 31, 2024. The increase in pipeline was primarily attributable to the addition of Lakeland's pipeline.

•As of June 30, 2024, CRE loans related to office properties totaled $1.1 billion, compared to $483.9 million as of March 31, 2024. The increase was attributable to the addition of Lakeland's loan portfolio. CRE loans secured by office properties constitutes only 5.7% of total loans and have an average loan size of $2.1 million, with just nine relationships greater than $10.0 million. Approximately 37% of the Company's office loans are to medical offices and the portfolio does not have significant central business district exposure. Delinquencies in the office portfolio as of June 30, 2024 were limited to one loan totaling $801,000.

•As of June 30, 2024, multi-family CRE loans secured by New York City properties totaled $227.7 million, compared to $188.7 million as of March 31, 2024. The increase was attributable to the addition of Lakeland's loan portfolio. This portfolio constitutes only 1.2% of total loans and has an average loan size of $2.6 million. Approximately $113.6 million of these loans are collateralized by rent stabilized apartments and all are performing.

•Wealth Management and Insurance Agency income increased 12.3% and 16.7%, respectively, versus the same period in 2023. The increase in wealth management income was primarily due to an increase in the average market value of assets under management during the period, while the increase in insurance agency income was largely due to an increase in business activity. Total non-interest income was 13.6% of net revenue for the quarter ended June 30, 2024.

•On May 9, 2024, the Company issued $225.0 million of 9.00% Fixed-to-Floating Rate subordinated notes due 2034, resulting in net proceeds of $221.0 million.

•Non-performing loans to total loans as of June 30, 2024 decreased to 0.36%, compared to 0.44% as of March 31, 2024, while non-performing assets to total loans as of June 30, 2024 decreased to 0.33%, compared to 0.42% as of March 31, 2024. For the three months ended June 30, 2024, net charge-offs totaled $1.3 million, or an annualized 4 basis points of average loans.

Declaration of Quarterly Dividend

The Company’s Board of Directors declared a quarterly cash dividend of $0.24 per common share payable on August 30, 2024 to stockholders of record as of the close of business on August 16, 2024.

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Results of Operations

Three months ended June 30, 2024 compared to the three months ended March 31, 2024

For the three months ended June 30, 2024, the Company reported a net loss of $11.5 million, or $0.11 per basic and diluted share, compared to net income of $32.1 million, or $0.43 per basic and diluted share, for the three months ended March 31, 2024. The Company’s earnings for the three months ended June 30, 2024 were impacted by an initial CECL provision for credit losses on loans and commitments to extend credit of $65.2 million recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. The results of operations for the three months ended June 30, 2024 included transaction costs related to the merger with Lakeland totaling $18.9 million, compared with transaction costs totaling $2.2 million in the trailing quarter. Additionally, the Company realized a $2.8 million loss related to the sale in the current quarter of subordinated debt issued by Lakeland from its investment portfolio.

Net Interest Income and Net Interest Margin

Net interest income increased $47.8 million to $141.5 million for the three months ended June 30, 2024, from $93.7 million for the trailing quarter. Net interest income for the three months ended June 30, 2024 was favorably impacted by the net assets acquired from Lakeland, partially offset by unfavorable repricing of both deposits and borrowings.

The Company’s net interest margin increased 34 basis points to 3.21% for the quarter ended June 30, 2024, from 2.87% for the trailing quarter. Accretion of purchase accounting adjustments contributed 47 basis points to the net interest margin in the current quarter. The current net interest margin reflects the acquisition of Lakeland’s interest-bearing assets and liabilities, the sale of $554.2 million of securities acquired from Lakeland and the repayment of overnight borrowings as well as the issuance of subordinated debt.

The weighted average yield on interest-earning assets for the quarter ended June 30, 2024 increased 61 basis points to 5.67%, compared to the trailing quarter. The weighted average cost of interest-bearing liabilities for the quarter ended June 30, 2024 increased 29 basis points from the trailing quarter, to 3.09%. The average cost of interest-bearing deposits for the quarter ended June 30, 2024 increased 24 basis points to 2.84%, compared to 2.60% for the trailing quarter. The average cost of total deposits, including non-interest-bearing deposits, was 2.27% for the quarter ended June 30, 2024, compared to 2.07% for the trailing quarter. The average cost of borrowed funds for the quarter ended June 30, 2024 was 3.83%, compared to 3.60% for the quarter ended March 31, 2024.

Provision for Credit Losses on Loans

For the quarter ended June 30, 2024, the Company recorded a $66.1 million provision for credit losses on loans, compared with a provision for credit losses on loans of $200,000 for the quarter ended March 31, 2024. The provision for credit losses on loans in the quarter was primarily attributable to an initial CECL provision for credit losses of $60.1 million, recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. For the three months ended June 30, 2024, net charge-offs totaled $1.3 million, or an annualized 4 basis points of average loans.

Non-Interest Income and Expense

For the three months ended June 30, 2024, non-interest income totaled $22.3 million, an increase of $1.5 million, compared to the trailing quarter. Fee income increased $2.8 million to $8.7 million for the three months ended June 30, 2024, compared to the trailing quarter, primarily due to increases in deposit fee income, debit card related fee income and commercial loan prepayment fees, resulting from the Lakeland merger. BOLI income increased $1.5 million for the three months ended June 30, 2024, compared to the trailing quarter, primarily due to an increase in benefit claims recognized, while wealth management income increased $281,000 to $7.8 million for the three months ended June 30, 2024, compared to the trailing quarter, mainly due to an increase in the average market value of assets under management during the period. Partially offsetting these increases in non-interest income, net gain on securities transactions decreased $3.0 million for the three months ended June 30, 2024, compared to the trailing quarter, primarily due to a $2.8 million loss on the sale of subordinated debt issued by Lakeland from the Provident investment portfolio prior to the merger. Additionally, insurance agency income decreased $305,000 to $4.5 million for the three months ended June 30, 2024, compared to the trailing quarter, mainly due to the receipt of contingent commissions in the prior quarter, partially offset by additional business in the current quarter.

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Non-interest expense totaled $115.4 million for the three months ended June 30, 2024, an increase of $43.6 million, compared to $71.8 million for the trailing quarter. Merger-related expenses increased $16.7 million to $18.9 million for the three months ended June 30, 2024, compared to the trailing quarter. Compensation and benefits expense increased $14.8 million to $54.9 million for the three months ended June 30, 2024, compared to $40.0 million for the trailing quarter. The increase in compensation and benefits expense was primarily attributable to the addition of Lakeland. Amortization of intangibles increased $5.8 million to $6.5 million for the three months ended June 30, 2024, compared to $705,000 for the trailing quarter, largely due to purchase accounting adjustments related to Lakeland. Net occupancy expense increased $2.6 million to $11.1 million for the three months ended June 30, 2024, compared to $8.5 million for the trailing quarter, primarily due to depreciation and maintenance expenses from the addition of Lakeland. Data processing expense increased $1.7 million to $8.4 million for the three months ended June 30, 2024, compared to $6.8 million for the trailing quarter, primarily due to additional software and hardware expenses needed for the addition of Lakeland. Other operating expenses increased $931,000 to $11.3 million for the three months ended June 30, 2024, compared to $10.3 million for the trailing quarter, while FDIC insurance increased $828,000 to $3.1 million for the three months ended June 30, 2024, compared to the trailing quarter, primarily due to the addition of Lakeland.

The Company’s annualized adjusted non-interest expense as a percentage of average assets(1) was 2.02% for the quarter ended June 30, 2024, compared to 1.99% for the trailing quarter. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)(1) was 57.86% for the three months ended June 30, 2024, compared to 60.83% for the trailing quarter.

Income Tax Expense

For the three months ended June 30, 2024, the Company's income tax benefit was $9.8 million, compared with income tax expense of $10.9 million for the trailing quarter. The decrease in tax expense for the three months ended June 30, 2024, compared with the trailing quarter was largely due to a $5.3 million tax benefit related to the revaluation of deferred tax assets to reflect the imposition by the state of New Jersey of a 2.5% Corporate Transit Fee in the quarter, effective January 1, 2024, combined with a decrease in taxable income in the quarter as a result of additional expenses from the Lakeland merger.

Three months ended June 30, 2024 compared to the three months ended June 30, 2023

For the three months ended June 30, 2024, the Company reported a net loss of $11.5 million, or $0.11 per basic and diluted share, compared to net income of $32.0 million, or $0.43 per basic and diluted share, for the three months ended June 30, 2023. The Company’s earnings for the three months ended June 30, 2024 were impacted by an initial CECL provision for credit losses on loans and commitments to extend credit of $65.2 million recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. The results of operations for the three months ended June 30, 2024 included transaction costs related to the merger with Lakeland totaling $18.9 million and $2.0 million for the three months ended June 30, 2024 and 2023, respectively. Additionally, the Company realized a $2.8 million loss on the sale in the current quarter of subordinated debt issued by Lakeland from its investment portfolio.

Net Interest Income and Net Interest Margin

Net interest income increased $42.4 million to $141.5 million for the three months ended June 30, 2024, from $99.1 million for same period in 2023. Net interest income for the three months ended June 30, 2024 were favorably impacted by the net assets acquired from Lakeland, partially offset by unfavorable repricing of both deposits and borrowings.

The Company’s net interest margin increased 10 basis points to 3.21% for the quarter ended June 30, 2024, from 3.11% for the same period last year. Accretion of purchase accounting adjustments contributed 47 basis points to the net interest margin in the current quarter.The current net interest margin reflects the acquisition of Lakeland’s interest bearing assets and liabilities, the sale of $554.2 million of securities acquired from Lakeland and the repayment of overnight borrowings as well as the issuance of subordinated debt.

The weighted average yield on interest-earning assets for the quarter ended June 30, 2024 increased 94 basis points to 5.67%, compared to 4.73% for the quarter ended June 30, 2023. The weighted average cost of interest-bearing

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liabilities increased 96 basis points for the quarter ended June 30, 2024 to 3.09%, compared to 2.13% for the second quarter of 2023. The average cost of interest-bearing deposits for the quarter ended June 30, 2024 was 2.84%, compared to 1.85% for the same period last year. Average non-interest-bearing demand deposits increased $498.0 million to $2.87 billion for the quarter ended June 30, 2024, compared to $2.37 billion for the quarter ended June 30, 2023. The average cost of total deposits, including non-interest-bearing deposits, was 2.27% for the quarter ended June 30, 2024, compared with 1.42% for the quarter ended June 30, 2023. The average cost of borrowed funds for the quarter ended June 30, 2024 was 3.83%, compared to 3.41% for the same period last year.

Provision for Credit Losses on Loans

For the quarter ended June 30, 2024, the Company recorded a $66.1 million provision for credit losses on loans, compared with a $10.4 million provision for credit losses on loans for the quarter ended June 30, 2023. The provision for credit losses on loans in the quarter was primarily attributable to an initial CECL provision for credit losses on loans of $60.1 million, recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. For the three months ended June 30, 2024, net charge-offs totaled $1.3 million, or an annualized 4 basis points of average loans.

Non-Interest Income and Expense

Non-interest income totaled $22.3 million for the quarter ended June 30, 2024, an increase of $2.9 million, compared to the same period in 2023. Fee income increased $2.9 million to $8.7 million for the three months ended June 30, 2024, compared to the prior year quarter, primarily due to increases in deposit fee income, debit card related fee income and commercial loan prepayment fees, resulting from the Lakeland merger. BOLI income increased $1.8 million to $3.3 million for the three months ended June 30, 2024, compared to the prior year quarter, primarily due to an increase in benefit claims recognized, combined with an increase in income related to the addition of Lakeland's BOLI. Wealth management fees increased $850,000 to $7.8 million for the three months ended June 30, 2024, compared to the quarter ended June 30, 2023, mainly due to an increase in the average market value of assets under management during the period, while insurance agency income increased $641,000 to $4.5 million for the three months ended June 30, 2024, compared to the quarter ended June 30, 2023, largely due to an increase in business activity. Partially offsetting these increases in non-interest income, net gains on securities transactions decreased $3.0 million for the three months ended June 30, 2024, compared to the quarter ended June 30, 2023, primarily due to a loss on the sale of subordinated debt issued by Lakeland from the Provident investment portfolio prior to the merger. Additionally, other income decreased $314,000 to $969,000 for the three months ended June 30, 2024, compared to the quarter ended June 30, 2023, primarily due to a decrease in gains on the sales of foreclosed real estate.

For the three months ended June 30, 2024, non-interest expense totaled $115.4 million, an increase of $50.3 million, compared to the three months ended June 30, 2023. Compensation and benefits expense increased $19.6 million to $54.9 million for three months ended June 30, 2024, compared to $35.3 million for the same period in 2023. The increase in compensation and benefits expense was primarily attributable to the addition of Lakeland. Additionally, merger-related expenses increased $17.0 million to $18.9 million for the three months ended June 30, 2024, compared to the same period in 2023. Amortization of intangibles increased $5.7 million to $6.5 million for the three months ended June 30, 2024, compared to $749,000for the same period in 2023, largely due to purchase accounting adjustments. Data processing expense increased $2.7 million to $8.4 million for three months ended June 30, 2024, compared to $5.7 millionfor the same period in 2023, primarily due to additional software and hardware expenses needed for the addition of Lakeland. Net occupancy expense increased $3.2 million to $11.1 million for three months ended June 30, 2024, compared to $7.9 million for the same period in 2023, primarily due to an increase in depreciation and maintenance expenses because of the addition of Lakeland.

The Company’s annualized adjusted non-interest expense as a percentage of average assets(1) was 2.02% for the quarter ended June 30, 2024, compared to 1.83% for the same period in 2023. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)(1) was 57.86% for the three months ended June 30, 2024 compared to 53.29% for the same respective period in 2023.

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Income Tax Expense

For the three months ended June 30, 2024, the Company's income tax benefit was $9.8 million, compared with an income tax expense of $11.6 million for the three months ended June 30, 2023. The decrease in tax expense for the three months ended June 30, 2024, compared with the same period last year was largely due to a $5.3 million tax benefit related to the revaluation of deferred tax assets to reflect the imposition by the State of NJ of a 2.5% Corporate Transit Fee, effective January 1, 2024, combined with a decrease in taxable income in the quarter as a result of additional expenses from the Lakeland merger.

Six months ended June 30, 2024 compared to the six months ended June 30, 2023

For the six months ended June 30, 2024, net income totaled $20.6 million, or $0.23 per basic and diluted share, compared to net income of $72.5 million, or $0.97 per basic and diluted share, for the six months ended June 30, 2023. The Company’s earnings for the six months ended June 30, 2024 were impacted by an initial CECL provision for credit losses on loans and commitments to extend credit of $65.2 million recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations. Transaction costs related to our merger with Lakeland totaled $21.1 million and $3.1 million for the six months ended June 30, 2024 and 2023, respectively. Additionally, the Company realized a $2.8 million loss related to the sale in the current quarter of subordinated debt issued by Lakeland from its investment portfolio.

Net Interest Income and Net Interest Margin

Net interest income increased $27.7 million to $235.2 million for the six months ended June 30, 2024, from $207.4 million for same period in 2023. Net interest income for the six months ended June 30, 2024 was favorably impacted by the net assets acquired from Lakeland, combined with the favorable repricing of adjustable rate loans, higher market rates on new loan originations and the originations of higher-yielding loans, partially offset by the unfavorable repricing of both deposits and borrowings.

For the six months ended June 30, 2024, the net interest margin decreased 21 basis points to 3.08%, compared to 3.29% for the six months ended June 30, 2023. The weighted average yield on interest earning assets increased 75 basis points to 5.43% for the six months ended June 30, 2024, compared to 4.68% for the six months ended June 30, 2023, while the weighted average cost of interest-bearing liabilities increased 113 basis points to 2.97% for the six months ended June 30, 2024, compared to 1.84% for the same period last year. The average cost of interest-bearing deposits increased 112 basis points to 2.74% for the six months ended June 30, 2024, compared to 1.62% for the same period last year. Average non-interest-bearing demand deposits increased $10.1 million to $2.47 billion for the six months ended June 30, 2024, compared with $2.46 billion for the six months ended June 30, 2023. The average cost of total deposits, including non-interest-bearing deposits, was 2.19% for the six months ended June 30, 2024, compared with 1.24% for the six months ended June 30, 2023. The average cost of borrowings for the six months ended June 30, 2024 was 3.75%, compared to 3.01% for the same period last year.

Provision for Credit Losses on Loans

For the six months ended June 30, 2024, the Company recorded a $66.3 million provision for credit losses on loans, compared with a provision for credit losses on loans of $16.4 million for the six months ended June 30, 2023. The provision for credit losses on loans in the quarter was primarily attributable to an initial CECL provision for credit losses on loans of $60.1 million recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations, partially offset by an improved economic forecast for the current six-month period within our CECL model, compared to the same period last year. For the six months ended June 30, 2024, net charge-offs totaled $2.3 million, or an annualized 3 basis points of average loans.

Non-Interest Income and Expense

For the six months ended June 30, 2024, non-interest income totaled $43.1 million, an increase of $1.5 million, compared to the same period in 2023. Fee income increased $2.4 million to $14.6 million for the six months ended June 30, 2024, compared to the same period in 2023, primarily due to increases in deposit fee income, debit card related fee income and commercial loan prepayment fees, resulting from the Lakeland merger. BOLI income increased $2.1 million to $5.1 million for the six months ended June 30, 2024, compared to the same period in 2023,

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primarily due to an increase in benefit claims recognized, combined with an increase in income related to the addition of Lakeland's BOLI, while wealth management income increased $1.4 million to $15.3 million for the six months ended June 30, 2024, compared to the same period in 2023, mainly due to an increase in the average market value of assets under management during the period. Insurance agency income increased $1.3 million to $9.3 million for the six months ended June 30, 2024, compared to $8.0 million for the same period in 2023, largely due to increases in contingent commissions, retention revenue and new business activity. Partially offsetting these increases in non-interest income, net gains on securities transactions decreased $3.0 million for the six months ended June 30, 2024, primarily due to a $2.8 million loss on the sale of subordinated debt issued by Lakeland from the Provident investment portfolio prior to the merger. Other income decreased$2.8 million to $1.8 million for the six months ended June 30, 2024, compared to $4.6 million for the same period in 2023, primarily due to a $2.0 million gain from the sale of a foreclosed commercial property recorded in the prior year, combined with a decrease in gains on sales of SBA loans.

Non-interest expense totaled $187.2 million for the six months ended June 30, 2024, an increase of $53.4 million, compared to $133.9 million for the six months ended June 30, 2023. Compensation and benefits expense increased $20.9 million to $94.9 million for the six months ended June 30, 2024, compared to $74.0 million for the six months ended June 30, 2023. The increase in compensation and benefits expense was primarily attributable to the addition of Lakeland. Merger-related expenses increased $18.1 million to $21.1 million for the six months ended June 30, 2024, compared to $3.1 million for the six months ended June 30, 2023. Amortization of intangibles increased $5.7 million to $7.2 million for the six months ended June 30, 2024, compared to $1.5 million for the six months ended June 30, 2023, largely due to purchase accounting adjustments related to Lakeland. Additionally, net occupancy expense increased $3.3 million to $19.7 million for the six months ended June 30, 2024, compared to the same period in 2023, primarily due to increased depreciation and maintenance expenses because of the addition of Lakeland.

Income Tax Expense

For the six months ended June 30, 2024, the Company's income tax expense was $1.1 million, compared with $26.1 million for the six months ended June 30, 2023. The decrease in tax expense for the six months ended June 30, 2024, compared with the same period last year was largely due to a $5.3 million tax benefit related to the revaluation of deferred tax assets to reflect the imposition by the State of NJ of a 2.5% Corporate Transit Fee, effective January 1, 2024, combined with a decrease in taxable income as a result of additional expenses from the Lakeland merger.

Asset Quality

The Company’s total non-performing loans as of June 30, 2024 were $67.9 million, or 0.36% of total loans, compared to $47.6 million, or 0.44% of total loans as of March 31, 2024 and $49.6 million, or 0.46% of total loans as of December 31, 2023. The $20.3 million increase in non-performing loans as of June 30, 2024, compared to the trailing quarter, consisted of an $11.7 million increase in non-performing construction loans, a $4.9 million increase in non-performing multi-family loans, a $2.8 million increase in non-performing commercial loans, a $2.8 million increase in non-performing residential mortgage loans and a $384,000 increase in non-performing consumer loans, partially offset by a $2.4 million decrease in non-performing commercial mortgage loans. These increases were due to the addition of Lakeland, which resulted in additional non-performing loans of $21.4 million. As of June 30, 2024, impaired loans totaled $54.6 million with related specific reserves of $7.7 million, compared with impaired loans totaling $40.1 million with related specific reserves of $8.2 million as of March 31, 2024. As of December 31, 2023, impaired loans totaled $42.8 million with related specific reserves of $2.4 million.

As of June 30, 2024, the Company’s allowance for credit losses related to the loan portfolio was 1.00% of total loans, compared to 0.98% and 0.99% as of March 31, 2024 and December 31, 2023, respectively. The allowance for credit losses increased $81.1 million to $188.3 million as of June 30, 2024, from $107.2 million as of December 31, 2023. The increase in the allowance for credit losses on loans as of June 30, 2024 compared to December 31, 2023 was due to a $66.3 million provision for credit losses and a $17.2 million allowance recorded through goodwill related to Purchased Credit Deteriorated loans acquired from Lakeland, partially offset by net charge-offs of $2.3 million.

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The following table sets forth accruing past due loans and non-accrual loans on the dates indicated, as well as delinquency statistics and certain asset quality ratios.

	June 30, 2024				March 31, 2024				December 31, 2023
	Number of Loans	Principal Balance of Loans			Number of Loans	Principal Balance of Loans			Number of Loans	Principal Balance of Loans
	(Dollars in thousands)
Accruing past due loans:
30 to 59 days past due:
Commercial mortgage loans	3	$	1,707		3	$	5,052		1	$	825
Multi-family mortgage loans	—	—			4	12,069			1	3,815
Construction loans	—	—			—	—			—	—
Residential mortgage loans	9	1,714			11	3,568			13	3,429
Total mortgage loans	12	3,421			18	20,689			15	8,069
Commercial loans	20	3,444			11	4,493			6	998
Consumer loans	38	2,891			22	803			31	875
Total 30 to 59 days past due	70	$	9,756		51	$	25,985		52	$	9,942
60 to 89 days past due:
Commercial mortgage loans	3	$	1,231		3	$	1,148		—	$	—
Multi-family mortgage loans	—	—			—	—			1	1,635
Construction loans	—	—			—	—			—	—
Residential mortgage loans	10	2,193			6	804			8	1,208
Total mortgage loans	13	3,424			9	1,952			9	2,843
Commercial loans	6	1,146			3	332			3	198
Consumer loans	9	648			8	755			5	275
Total 60 to 89 days past due	28	5,218			20	3,039			17	3,316
Total accruing past due loans	98	$	14,974		71	$	29,024		69	$	13,258
Non-accrual:
Commercial mortgage loans	10	$	3,588		8	$	5,938		7	$	5,151
Multi-family mortgage loans	5	7,276			2	2,355			1	744
Construction loans	1	11,698			—	—			1	771
Residential mortgage loans	20	4,447			10	1,647			7	853
Total mortgage loans	36	27,009			20	9,940			16	7,519
Commercial loans	58	39,715			21	36,892			26	41,487
Consumer loans	24	1,144			11	760			10	633
Total non-accrual loans	118	$	67,868		52	$	47,592		52	$	49,639
Non-performing loans to total loans		0.36		%		0.44		%		0.46		%
Allowance for loan losses to total non-performing loans		277.50		%		223.63		%		215.96		%
Allowance for loan losses to total loans		1.00		%		0.98		%		0.99		%

As of June 30, 2024 and December 31, 2023, the Company held foreclosed assets of $11.1 million and $11.7 million, respectively. During the six months ended June 30, 2024, there were three properties sold with an aggregate carrying value of $532,000. Foreclosed assets as of June 30, 2024 consisted primarily of commercial real estate. Total non-performing assets as of June 30, 2024 increased $17.7 million to $79.0 million, or 0.33% of total assets, from $61.3 million, or 0.43% of total assets as of December 31, 2023.

8

Balance Sheet Summary

Total assets as of June 30, 2024 were $24.07 billion, a $9.86 billion increase from December 31, 2023. The increase in total assets was primarily due to the addition of Lakeland.

The Company’s loan portfolio totaled $18.76 billion as of June 30, 2024 and $10.87 billion as of December 31, 2023. The loan portfolio consisted of the following:

	June 30, 2024		March 31, 2024		December 31, 2023
	(Dollars in thousands)
Mortgage loans:
Commercial	$	7,337,742	$	4,353,799	$	4,512,411
Multi-family	3,189,808		1,825,888		1,812,500
Construction	970,244		711,417		653,246
Residential	2,024,027		1,152,185		1,164,956
Total mortgage loans	13,521,821		8,043,289		8,143,113
Commercial loans	4,617,232		2,514,550		2,442,406
Consumer loans	626,016		295,125		299,164
Total gross loans	18,765,069		10,852,964		10,884,683
Premiums on purchased loans	1,410		1,439		1,474
Net deferred fees and unearned discounts	(7,149)		(11,696)		(12,456)
Total loans	$	18,759,330	$	10,842,707	$	10,873,701

As part of the merger with Lakeland, we acquired $7.91 billion in loans, net of purchase accounting adjustments. As of June 30, 2024, the acquired Lakeland loan portfolio, net of fair value marks totaled $7.97 billion, which included $3.02 billion in commercial mortgage loans, $1.49 billion in commercial loans, $1.36 billion in multi-family loans, $878.2 million in residential loans, $564.5 million in specialty lending, $327.3 million in construction loans and $327.2 million in consumer loans. Commercial loans, consisting of commercial real estate, multi-family, commercial and construction loans, represented 85.9% of the loan portfolio as of June 30, 2024, compared to 86.5% as of December 31, 2023.

For the six months ended June 30, 2024, loan funding, including advances on lines of credit, totaled $1.84 billion, compared with $1.79 billion for the same period in 2023.

As of June 30, 2024, the Company’s unfunded loan commitments totaled $3.01 billion, including commitments of $1.51 billion in commercial loans, $664.7 million in construction loans and $186.6 million in commercial mortgage loans. Unfunded loan commitments as of December 31, 2023 and June 30, 2023 were $2.09 billion and $2.02 billion, respectively.

The loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $1.67 billion as of June 30, 2024, compared to $1.09 billion and $1.74 billion as of December 31, 2023 and June 30, 2023, respectively.

Total investment securities were $3.10 billion as of June 30, 2024, a $963.0 million increase from December 31, 2023. This increase was primarily due to the addition of Lakeland.

Total deposits increased $8.06 billion during the six months ended June 30, 2024, to $18.35 billion. Total savings and demand deposit accounts increased $6.07 billion to $15.27 billion as of June 30, 2024, while total time deposits increased $1.99 billion to $3.08 billion as of June 30, 2024. The increase in savings and demand deposits was largely attributable to a $2.88 billion increase in interest bearing demand deposits, a $1.51 billion increase in non-interest bearing demand deposits, a $1.12 billion increase in money market deposits and a $569.5 million increase in savings deposits. The Company's Insured Cash Sweep deposits increased $619.8 million to $1.14 billion as of June 30, 2024, from $520.2 million as of December 31, 2023. The increase in time deposits consisted of a $2.09 billion increase in retail time deposits, partially offset by a $100.5 million decrease in brokered time deposits.

9

Borrowed funds increased $332.0 million during the six months ended June 30, 2024, to $2.30 billion. The increase in deposits and borrowings was largely due to the addition of Lakeland. Borrowed funds represented 9.6% of total assets as of June 30, 2024, a decrease from 13.9% as of December 31, 2023.

Stockholders’ equity increased $865.1 million during the six months ended June 30, 2024, to $2.56 billion, primarily due to common stock issued for the purchase of Lakeland and net income earned for the period, partially offset by an increase in unrealized losses on available for sale debt securities and cash dividends paid to stockholders. For the three and six months ended June 30, 2024, common stock repurchases totaled 527 shares at an average cost of $15.17 per share and 86,852 shares at an average cost of $14.84 per share, respectively, all of which were made in connection with withholding to cover income taxes on the vesting of stock-based compensation. As of June 30, 2024, approximately 1.0 million shares remained eligible for repurchase under the current stock repurchase authorization. Book value per share and tangible book value per share(1) as of June 30, 2024 were $19.60 and $13.07, respectively, compared with $22.38 and $16.32, respectively, as of December 31, 2023.

About the Company

Provident Financial Services, Inc. is the holding company for Provident Bank, a community-oriented bank offering "commitment you can count on" since 1839. Provident Bank provides a comprehensive array of financial products and services through its network of branches throughout New Jersey, Bucks, Lehigh and Northampton counties in Pennsylvania, as well as Orange, Queens and Nassau Counties in New York. Provident Bank also provides fiduciary and wealth management services through its wholly owned subsidiary, Beacon Trust Company and insurance services through its wholly owned subsidiary, Provident Protection Plus, Inc.

Post Earnings Conference Call

Representatives of the Company will hold a conference call for investors on Friday, July 26, 2024 at 10:00 a.m. Eastern Time to discuss the Company’s financial results for the quarter ended June 30, 2024. The call may be accessed by dialing 1-888-412-4131 (United States Toll Free) and 1-646-960-0134 (United States Local). Speakers will need to enter conference ID code (3610756) before being met by a live operator. Internet access to the call is also available (listen only) at provident.bank by going to Investor Relations and clicking on "Webcast."

Forward Looking Statements

Certain statements contained herein are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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,” "project," "intend," “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 Current Reports on Form 8-K, and those related to the economic environment, particularly in the market areas in which the Company operates, inflation and unemployment, competitive products and pricing, real estate values, fiscal and monetary policies of the U.S. Government, changes in accounting policies and practices that may be adopted by the regulatory agencies and the accounting standards setters, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, potential goodwill impairment, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets, the availability of and costs associated with sources of liquidity, any failure to realize the anticipated benefits of the merger transaction when expected or at all; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected conditions, factors or events, potential adverse reactions or changes to business, employee, customer and/or counterparty relationships, including those resulting from the completion of the merger and integration of the companies; and the impact of a potential shutdown of the federal government.

The Company cautions readers not to place undue reliance on any such forward-looking statements which speak only as of the date they are made. The Company advises readers that the factors listed above could affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not

10

assume any duty, and does not undertake, to update any forward-looking statements to reflect events or circumstances after the date of this statement.

Footnotes

(1) Annualized adjusted pre-tax, pre-provision return on average assets, average equity and average tangible equity, tangible book value per share, annualized adjusted non-interest expense as a percentage of average assets and the efficiency ratio are non-GAAP financial measures. Please refer to the Notes following the Consolidated Financial Highlights which contain the reconciliation of GAAP to non-GAAP financial measures and the associated calculations.

11

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Financial Highlights
(Dollars in Thousands, except share data) (Unaudited)
	At or for the Three Months ended									At or for the Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
	2024			2024			2023			2024			2023
Statement of Income
Net interest income	$	141,506		$	93,670		$	99,106		$	235,176		$	207,430
Provision for credit losses	69,705			(320)			9,750			69,385			16,490
Non-interest income	22,275			20,807			19,387			43,081			41,540
Non-interest expense	115,394			71,827			65,110			187,221			133,858
(Loss) income before income tax expense	(21,318)			42,970			43,633			21,651			98,622
Net (loss) income	(11,485)			32,082			32,003			20,596			72,539
Diluted earnings per share	$	(0.11)		$	0.43		$	0.43		$	0.23		$	0.97
Interest rate spread	2.58		%	2.26		%	2.60		%	2.46		%	2.84		%
Net interest margin	3.21		%	2.87		%	3.11		%	3.08		%	3.29		%
Profitability
Annualized return on average assets	(0.24)		%	0.92		%	0.93		%	0.25		%	1.06		%
Annualized return on average equity	(2.17)		%	7.60		%	7.76		%	2.17		%	8.92		%
Annualized return on average tangible equity (3)	(3.15)		%	10.40		%	10.75		%	3.06		%	12.40		%
Annualized adjusted non-interest expense to average assets (4)	2.02		%	1.99		%	1.83		%	2.01		%	1.91		%
Efficiency ratio (5)	57.86		%	60.83		%	53.29		%	59.06		%	52.54		%
Asset Quality
Non-accrual loans				$	47,592					$	67,868		$	45,928
90+ and still accruing				—						—			—
Non-performing loans				47,592						67,868			45,928
Foreclosed assets				11,324						11,119			13,697
Non-performing assets				58,916						78,987			59,625
Non-performing loans to total loans				0.44		%				0.36		%	0.44		%
Non-performing assets to total assets				0.42		%				0.33		%	0.42		%
Allowance for loan losses				$	106,429					$	188,331		$	102,073
Allowance for loan losses to total non-performing loans				223.63		%				277.50		%	222.25		%
Allowance for loan losses to total loans				0.98		%				1.00		%	0.97		%
Net loan charge-offs	$	1,340		$	971		$	1,085		$	2,311		$	1,756
Annualized net loan charge-offs to average total loans	0.04		%	0.04		%	0.04		%	0.04		%	0.03		%
Average Balance Sheet Data
Assets	$	19,197,041		$	14,093,767		$	13,833,055		$	16,645,404		$	13,783,159
Loans, net	14,649,413			10,668,992			10,238,224			12,659,202			10,166,439
Earning assets	17,385,819			12,862,910			12,575,967			15,093,217			12,497,684
Core deposits	12,257,244			9,129,244			9,297,058			10,693,244			9,507,756
Borrowings	2,158,193			1,940,981			1,658,809			2,049,587			1,442,744
Interest-bearing liabilities	13,856,039			10,074,106			9,565,814			11,965,072			9,416,020
Stockholders' equity	2,127,469			1,698,170			1,653,677			1,912,820			1,640,099
Average yield on interest-earning assets	5.67		%	5.06		%	4.73		%	5.43		%	4.68		%
Average cost of interest-bearing liabilities	3.09		%	2.80		%	2.13		%	2.97		%	1.84		%

12

Notes and Reconciliation of GAAP and Non-GAAP Financial Measures

(Dollars in Thousands, except share data)

The Company has presented the following non-GAAP (U.S. Generally Accepted Accounting Principles) financial measures because it believes that these measures provide useful and comparative information to assess trends in the Company’s results of operations and financial condition. Presentation of these non-GAAP financial measures is consistent with how the Company evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Company’s industry. Investors should recognize that the Company’s presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and the Company strongly encourages a review of its condensed consolidated financial statements in their entirety.

(1) Annualized adjusted pre-tax, pre-provision ("PTPP") returns on average assets, average equity and average tangible equity
	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
	2024			2024			2023			2024			2023
Net (loss) income	$	(11,485)		$	32,082		$	32,003		$	20,596		$	72,539
Adjustments to net (loss) income:
Provision for credit losses	69,705			(320)			9,750			69,385			16,490
Net loss on Lakeland bond sale	2,839			—			—			2,839			—
Merger-related transaction costs	18,915			2,202			1,960			21,117			3,060
Income tax (benefit) expense	(9,833)			10,888			11,630			1,055			26,083
PTPP income	$	70,141		$	44,852		$	55,343		$	114,992		$	118,172
Annualized PTPP income	$	282,106		$	180,394		$	221,980		$	231,248		$	238,303
Average assets	$	19,197,041		$	14,093,767		$	13,833,055		$	16,645,404		$	13,783,160
Average equity	$	2,127,469		$	1,698,170		$	1,653,677		$	1,912,820		$	1,640,099
Average tangible equity	$	1,468,630		$	1,240,475		$	1,193,812		$	1,354,553		$	1,179,853
Annualized PTPP return on average assets	1.47		%	1.28		%	1.60		%	1.39		%	1.73		%
Annualized PTPP return on average equity	13.26		%	10.62		%	13.42		%	12.09		%	14.53		%
Annualized PTPP return on average tangible equity	19.21		%	14.54		%	18.59		%	17.07		%	20.20		%
(2) Book and Tangible Book Value per Share
										June 30,			December 31,
										2024			2023
Total stockholders' equity										$	2,555,646		$	1,690,596
Less: total intangible assets										851,507			457,942
Total tangible stockholders' equity										$	1,704,139		$	1,232,654
Shares outstanding										130,380,393			75,537,186
Book value per share (total stockholders' equity/shares outstanding)										$19.60			$22.38
Tangible book value per share (total tangible stockholders' equity/shares outstanding)										$13.07			$16.32
(3) Annualized Return on Average Tangible Equity
	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
	2024			2024			2023			2024			2023
Total average stockholders' equity	$	2,127,469		$	1,698,170		$	1,653,677		$	1,912,820		$	1,640,099
Less: total average intangible assets	658,839			457,695			459,865			558,267			460,246
Total average tangible stockholders' equity	$	1,468,630		$	1,240,475		$	1,193,812		$	1,354,553		$	1,179,853
Net (loss) income	$	(11,485)		$	32,082		$	32,003		$	20,596		$	72,539
Annualized return on average tangible equity (net income/total average tangible stockholders' equity)	(3.15)		%	10.40		%	10.75		%	3.06		%	12.40		%

13

(4) Annualized Adjusted Non-Interest Expense to Average Assets
	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
	2024			2024			2023			2024			2023
Reported non-interest expense	$	115,394		$	71,827		$	65,110		$	187,221		$	133,858
Adjustments to non-interest expense:
Merger-related transaction costs	18,915			2,202			1,960			21,117			3,060
Adjusted non-interest expense	$	96,479		$	69,625		$	63,150		$	166,104		$	130,798
Annualized adjusted non-interest expense	$	388,036		$	280,030		$	253,294		$	334,033		$	263,764
Average assets	$	19,197,041		$	14,093,767		$	13,833,055		$	16,645,404		$	13,783,160
Annualized adjusted non-interest expense/average assets	2.02		%	1.99		%	1.83		%	2.01		%	1.91		%
(5) Efficiency Ratio Calculation
	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
	2024			2024			2023			2024			2023
Net interest income	$	141,506		$	93,670		$	99,106		$	235,176		$	207,430
Reported non-interest income	22,275			20,807			19,387			43,081			41,540
Adjustments to non-interest income:
Net loss (gain) on securities transactions	2,973			(24)			1			2,974			(24)
Adjusted non-interest income	25,248			20,783			19,388			46,055			41,516
Total income	$	166,754		$	114,453		$	118,494		$	281,231		$	248,946
Adjusted non-interest expense	$	96,479		$	69,625		$	63,150		$	166,104		$	130,798
Efficiency ratio (adjusted non-interest expense/income)	57.86		%	60.83		%	53.29		%	59.06		%	52.54		%

14

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Financial Condition
June 30, 2024 (Unaudited) and December 31, 2023
(Dollars in Thousands)
Assets	June 30, 2024		December 31, 2023
Cash and due from banks	$	290,528	$	180,241
Short-term investments	33		14
Total cash and cash equivalents	290,561		180,255
Available for sale debt securities, at fair value	2,626,783		1,690,112
Held to maturity debt securities, net (fair value of $352,167 as of June 30, 2024 (unaudited) and $352,601 as of December 31, 2023)	350,528		363,080
Equity securities, at fair value	19,250		1,270
Federal Home Loan Bank stock	100,068		79,217
Loans held for sale	4,450		1,785
Loans held for investment	18,759,330		10,871,916
Less allowance for credit losses	188,331		107,200
Net loans	18,575,449		10,766,501
Foreclosed assets, net	11,119		11,651
Banking premises and equipment, net	127,396		70,998
Accrued interest receivable	93,843		58,966
Intangible assets	851,507		457,942
Bank-owned life insurance	404,605		243,050
Other assets	619,358		287,768
Total assets	$	24,070,467	$	14,210,810
Liabilities and Stockholders' Equity
Deposits:
Demand deposits	$	13,526,094	$	8,020,889
Savings deposits	1,745,158		1,175,683
Certificates of deposit of $250,000 or more	871,842		218,549
Other time deposits	2,210,150		877,393
Total deposits	18,353,244		10,292,514
Mortgage escrow deposits	50,694		36,838
Borrowed funds	2,302,058		1,970,033
Subordinated debentures	412,766		10,695
Other liabilities	396,059		210,134
Total liabilities	21,514,821		12,520,214
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, 137,565,966 shares issued and 130,380,393 shares outstanding as of June 30, 2024 and 75,537,186 outstanding as of December 31, 2023.	1,376		832
Additional paid-in capital	1,868,643		989,058
Retained earnings	957,979		974,542
Accumulated other comprehensive loss	(139,964)		(141,115)
Treasury stock	(129,115)		(127,825)
Unallocated common stock held by the Employee Stock Ownership Plan	(3,273)		(4,896)
Common Stock acquired by the Directors' Deferred Fee Plan	(2,398)		(2,694)
Deferred Compensation - Directors' Deferred Fee Plan	2,398		2,694
Total stockholders' equity	2,555,646		1,690,596
Total liabilities and stockholders' equity	$	24,070,467	$	14,210,810

15

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Income
Three months ended June 30, 2024, March 31, 2024 and June 30, 2023, and six months ended June 30, 2024 and 2023 (Unaudited)
(Dollars in Thousands, except per share data)
	Three Months Ended						Six Months Ended
	June 30,		March 31,		June 30,		June 30,		June 30,
	2024		2024		2023		2024		2023
Interest and dividend income:
Real estate secured loans	$	156,318	$	107,456	$	99,302	$	263,774	$	195,290
Commercial loans	58,532		36,100		31,426		94,632		60,109
Consumer loans	8,351		4,523		4,431		12,874		8,673
Available for sale debt securities, equity securities and Federal Home Loan Bank stock	20,394		12,330		11,432		32,724		22,862
Held to maturity debt securities	2,357		2,268		2,357		4,625		4,725
Deposits, federal funds sold and other short-term investments	1,859		1,182		948		3,041		1,793
Total interest income	247,811		163,859		149,896		411,670		293,452
Interest expense:
Deposits	81,058		52,534		36,447		133,592		63,957
Borrowed funds	20,566		17,383		14,088		37,949		21,564
Subordinated debt	4,681		272		255		4,953		501
Total interest expense	106,305		70,189		50,790		176,494		86,022
Net interest income	141,506		93,670		99,106		235,176		207,430
Provision charge (benefit) for credit losses	69,705		(320)		9,750		69,385		16,490
Net interest income after provision for credit losses	71,801		93,990		89,356		165,791		190,940
Non-interest income:
Fees	8,699		5,912		5,775		14,611		12,162
Wealth management income	7,769		7,488		6,919		15,257		13,834
Insurance agency income	4,488		4,793		3,847		9,281		7,950
Bank-owned life insurance	3,323		1,817		1,534		5,140		3,018
Net (loss) gain on securities transactions	(2,973)		(1)		29		(2,974)		24
Other income	969		798		1,283		1,766		4,552
Total non-interest income	22,275		20,807		19,387		43,081		41,540
Non-interest expense:
Compensation and employee benefits	54,888		40,048		35,283		94,936		74,021
Net occupancy expense	11,142		8,520		7,949		19,662		16,360
Data processing expense	8,433		6,783		5,716		15,217		11,224
FDIC Insurance	3,100		2,272		2,125		5,372		4,061
Amortization of intangibles	6,483		705		749		7,188		1,511
Advertising and promotion expense	1,171		966		1,379		2,137		2,589
Merger-related expenses	18,915		2,202		1,960		21,117		3,060
Other operating expenses	11,262		10,331		9,949		21,592		21,032
Total non-interest expense	115,394		71,827		65,110		187,221		133,858
(Loss) Income before income tax expense	(21,318)		42,970		43,633		21,651		98,622
Income tax (benefit) expense	(9,833)		10,888		11,630		1,055		26,083
Net (loss) income	$	(11,485)	$	32,082	$	32,003	$	20,596	$	72,539
Basic earnings per share	$	(0.11)	$	0.43	$	0.43	$	0.23	$	0.97
Average basic shares outstanding	102,957,521		75,260,029		74,823,272		89,108,775		74,734,795
Diluted earnings per share	$	(0.11)	$	0.43	$	0.43	$	0.23	$	0.97
Average diluted shares outstanding	102,957,521		75,275,660		74,830,187		89,116,590		74,766,848

16

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Quarterly Average Balances
(Dollars in Thousands) (Unaudited)
	June 30, 2024						March 31, 2024						June 30, 2023
	Average Balance		Interest		Average Yield/Cost		Average Balance		Interest		Average Yield/Cost		Average Balance		Interest		Average Yield/Cost
Interest-Earning Assets:
Deposits	$	40,228	$	1,859	5.38	%	$	87,848	$	1,182	5.41	%	$	73,470	$	947	5.17	%
Federal funds sold and other short-term investments	—		—		—	%	21		—		—	%	88		1		6.75	%
Available for sale debt securities	2,244,725		17,646		3.14	%	1,673,950		10,022		2.39	%	1,801,050		10,290		2.29	%
Held to maturity debt securities, net (1)	352,216		2,357		2.68	%	357,246		2,268		2.54	%	379,958		2,357		2.48	%
Equity securities, at fair value	10,373		—		—	%	1,099		—		—	%	1,006		—		—	%
Federal Home Loan Bank stock	88,864		2,747		12.36	%	73,754		2,308		12.52	%	82,171		1,142		5.56	%
Net loans: (2)
Total mortgage loans	10,674,109		156,318		5.81	%	7,990,218		107,456		5.33	%	7,701,072		99,302		5.11	%
Total commercial loans	3,514,602		58,532		6.62	%	2,381,965		36,100		6.03	%	2,234,043		31,426		5.59	%
Total consumer loans	460,702		8,351		7.29	%	296,809		4,523		6.13	%	303,109		4,431		5.86	%
Total net loans	14,649,413		223,201		6.05	%	10,668,992		148,079		5.51	%	10,238,224		135,159		5.24	%
Total interest-earning assets	$	17,385,819	$	247,810	5.67	%	$	12,862,910	$	163,859	5.06	%	$	12,575,967	$	149,896	4.73	%
Non-Interest Earning Assets:
Cash and due from banks	37,621						116,563						129,979
Other assets	1,773,601						1,114,294						1,127,109
Total assets	$	19,197,041					$	14,093,767					$	13,833,055
Interest-Bearing Liabilities:
Demand deposits	$	7,935,543	$	58,179	2.95	%	$	5,894,062	$	41,566	2.84	%	$	5,620,268	$	28,613	2.04	%
Savings deposits	1,454,784		832		0.23	%	1,163,181		637		0.22	%	1,307,830		537		0.16	%
Time deposits	2,086,433		22,047		4.25	%	1,065,170		10,331		3.90	%	968,344		7,297		3.02	%
Total Deposits	11,476,760		81,058		2.84	%	8,122,413		52,534		2.60	%	7,896,442		36,447		1.85	%
Borrowed funds	2,158,193		20,565		3.83	%	1,940,981		17,383		3.60	%	1,658,809		14,088		3.41	%
Subordinated debentures	221,086		4,681		8.52	%	10,712		272		10.23	%	10,563		255		9.66	%
Total interest-bearing liabilities	13,856,039		106,304		3.09	%	10,074,106		70,189		2.80	%	9,565,814		50,790		2.13	%
Non-Interest Bearing Liabilities:
Non-interest bearing deposits	2,866,917						2,072,001						2,368,960
Other non-interest bearing liabilities	346,616						249,490						244,604
Total non-interest bearing liabilities	3,213,533						2,321,491						2,613,564
Total liabilities	17,069,572						12,395,597						12,179,378
Stockholders' equity	2,127,469						1,698,170						1,653,677
Total liabilities and stockholders' equity	$	19,197,041					$	14,093,767					$	13,833,055
Net interest income			$	141,506					$	93,670					$	99,106
Net interest rate spread					2.58	%					2.26	%					2.60	%
Net interest-earning assets	$	3,529,780					$	2,788,804					$	3,010,153
Net interest margin (3)					3.21	%					2.87	%					3.11	%
Ratio of interest-earning assets to total interest-bearing liabilities	1.25x						1.28x						1.31x

(1)	Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses.
(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.

17

The following table summarizes the quarterly net interest margin for the previous five quarters.
	6/30/24		3/31/24		12/31/23		9/30/23		6/30/23
	2nd Qtr.		1st Qtr.		4th Qtr.		3rd Qtr.		2nd Qtr.
Interest-Earning Assets:
Securities	3.40	%	2.87	%	2.79	%	2.67	%	2.53	%
Net loans	6.05	%	5.51	%	5.50	%	5.37	%	5.24	%
Total interest-earning assets	5.67	%	5.06	%	5.04	%	4.89	%	4.73	%
Interest-Bearing Liabilities:
Total deposits	2.84	%	2.60	%	2.47	%	2.22	%	1.85	%
Total borrowings	3.83	%	3.60	%	3.71	%	3.74	%	3.41	%
Total interest-bearing liabilities	3.09	%	2.80	%	2.71	%	2.50	%	2.13	%
Interest rate spread	2.58	%	2.26	%	2.33	%	2.39	%	2.60	%
Net interest margin	3.21	%	2.87	%	2.92	%	2.96	%	3.11	%
Ratio of interest-earning assets to interest-bearing liabilities	1.25x		1.28x		1.28x		1.30x		1.31x

18

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Average Year to Date Balances
(Dollars in Thousands) (Unaudited)
	June 30, 2024						June 30, 2023
	Average				Average		Average				Average
	Balance		Interest		Yield/Cost		Balance		Interest		Yield/Cost
Interest-Earning Assets:
Deposits	$	32,901	$	3,041	5.38	%	$	72,750	$	1,791	4.97	%
Federal funds sold and other short term investments	—		—		—	%	59		2		6.00	%
Available for sale debt securities	1,959,549		27,669		2.82	%	1,804,814		20,692		2.29	%
Held to maturity debt securities, net (1)	354,731		4,625		2.61	%	381,921		4,725		2.47	%
Equity securities, at fair value	5,525		—		—	%	999		—		—	%
Federal Home Loan Bank stock	81,309		5,055		12.43	%	70,702		2,170		6.14	%
Net loans: (2)
Total mortgage loans	9,326,838		263,774		5.61	%	7,671,493		195,290		5.07	%
Total commercial loans	2,953,842		94,632		6.39	%	2,191,222		60,109		5.49	%
Total consumer loans	378,522		12,874		6.84	%	303,724		8,673		5.76	%
Total net loans	12,659,202		371,280		5.83	%	10,166,439		264,072		5.18	%
Total interest-earning assets	$	15,093,217	$	411,670	5.43	%	$	12,497,684	$	293,452	4.68	%
Non-Interest Earning Assets:
Cash and due from banks	108,229						136,431
Other assets	1,443,958						1,149,044
Total assets	$	16,645,404					$	13,783,159
Interest-Bearing Liabilities:
Demand deposits	$	6,914,802	$	99,745	2.90	%	$	5,695,507	$	50,533	1.79	%
Savings deposits	1,308,983		1,469		0.23	%	1,352,874		990		0.15	%
Time deposits	1,575,801		32,378		4.13	%	914,358		12,434		2.74	%
Total deposits	9,799,586		133,592		2.74	%	7,962,739		63,957		1.62	%
Borrowed funds	2,049,587		37,949		3.75	%	1,442,744		21,564		3.01	%
Subordinated debentures	115,899		4,953		8.59	%	10,537		501		9.58	%
Total interest-bearing liabilities	$	11,965,072	$	176,494	2.97	%	$	9,416,020	$	86,022	1.84	%
Non-Interest Bearing Liabilities:
Non-interest bearing deposits	2,469,459						2,459,375
Other non-interest bearing liabilities	298,053						267,666
Total non-interest bearing liabilities	2,767,512						2,727,041
Total liabilities	14,732,584						12,143,061
Stockholders' equity	1,912,820						1,640,099
Total liabilities and stockholders' equity	$	16,645,404					$	13,783,160
Net interest income			$	235,176					$	207,430
Net interest rate spread					2.46	%					2.84	%
Net interest-earning assets	$	3,128,145					$	3,081,664
Net interest margin (3)					3.08	%					3.29	%
Ratio of interest-earning assets to total interest-bearing liabilities	1.26x						1.33x
(1) Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses.
(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.

19

The following table summarizes the year-to-date net interest margin for the previous three years.
	Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2022
Interest-Earning Assets:
Securities	3.14	%	2.52	%	1.59	%
Net loans	5.83	%	5.18	%	3.84	%
Total interest-earning assets	5.43	%	4.68	%	3.33	%
Interest-Bearing Liabilities:
Total deposits	2.74	%	1.62	%	0.26	%
Total borrowings	3.75	%	3.01	%	0.85	%
Total interest-bearing liabilities	2.97	%	1.84	%	0.30	%
Interest rate spread	2.46	%	2.84	%	3.03	%
Net interest margin	3.08	%	3.29	%	3.11	%
Ratio of interest-earning assets to interest-bearing liabilities	1.26x		1.33x		1.39x

20