Q3 2024 Provident Financial Services Inc Earnings Call Transcript
Key Points
- Provident Financial Services Inc (PFS) successfully completed the conversion of Lakeland Bancorp's core system, achieving a smooth integration and retaining virtually all legacy customers.
- The company reported solid core profitability with net earnings of $46.4 million, or 36¢ per share, and a return on average tangible equity of 14.53%.
- Provident Financial Services Inc (PFS) experienced growth in its loan pipeline, reaching approximately $2 billion, indicating strong future growth potential.
- Fee-based businesses performed well, with Provident Protection Plus achieving 13% organic growth in the third quarter and a 99% retention rate.
- The company's tangible book value per share increased by 4.5% to $13.66, and the tangible common equity ratio improved to 7.68%.
- Provident Financial Services Inc (PFS) faced weak loan demand and higher deposit costs, impacting overall financial performance.
- The average cost of total deposits increased by nine basis points to 2.36%, contributing to higher funding costs.
- Nonperforming loans saw a slight deterioration, primarily due to one commercial real estate credit, although no loss is expected.
- The provision for loan losses increased to $9.6 million, reflecting specific reserve requirements and some macroeconomic deterioration.
- Noninterest expenses, excluding merger-related charges, were higher than expected at $120 million, impacting the efficiency ratio.
Thank you for standing by. I would like to welcome everyone to the Provident Financial Services Inc third quarter earnings conference call. I would now like to turn the call over to Adriano M. Duarte the Senior Vice President and Investor Relations Officer. Please go ahead, sir.
Thank you, Dustin. Good morning, everyone. And thank you for joining us for our third quarter earnings call. Today's presenters, Our President and CEO Anthony J. Labozzetta (President and Chief Executive Officer) and Senior Executive Vice President and Chief Financial Officer, Thomas M. Lyons. Before beginning their review of our financial results, we ask that you please take note of our standard question as to any forward-looking statements that may be made during the course of today's call, our full disclaimers contained in yesterday evening's earnings release which has been posted to the investor relations page on our website Provident dot bank. Now, it's my pleasure to introduce
| 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
