Q2 2024 Provident Financial Services Inc Earnings Call Transcript
Key Points
- Successful completion of the Provident Lakeland merger, expanding customer base and product offerings.
- Strong credit quality with a non-performing loan ratio of only 36 basis points.
- Increased net interest margin to 3.21%, with expectations to improve further in the upcoming quarter.
- Healthy capital levels, exceeding regulatory requirements with a Tier 1 leverage ratio of 9.36% and a total risk-based capital ratio of 11.66%.
- Fee-based businesses performed well, with Provident Protection Plus achieving 19% organic growth and Beacon Trust assets under management growing to $4.1 billion.
- Reported a net loss of $11.5 million for the quarter due to merger-related transaction costs.
- Total charges related to the merger were $86.9 million, impacting overall financial performance.
- Loan growth was constrained in the first half of the year due to market conditions and internal management decisions.
- Increased provision for credit losses on loans and commitments to extend credit, despite strong asset quality.
- Higher funding costs due to the issuance of $225 million in subordinated debt, impacting the overall cost of funds.
Thank you for standing by. At this time, I would like to welcome everyone to the Provident Financial Services Incorporated second quarter earnings conference call. (Operator Instructions) Thank you.
I would now like to turn the call over to Adriano Duarte, Head of Investor Relations. Adriano, please go ahead.
Thank you, Greg. Good morning, everyone, and thank you for joining us for our second quarter earnings call. Today's presenters are President and CEO, Tony Labozzetta; and Senior Executive Vice President and Chief Financial Officer, Tom Lyons.
Before beginning the review of our financial results, we ask that you please take note of our standard caution as to any forward-looking statements that may be made during the course of today's call. Our full disclaimer is contained in yesterday evening's earnings release, which has been posted to the Investor Relations page on our website, provident.bank.
Now, it's my
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
