Provident Financial Services Inc
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.97%.
Did PFS Beat Earnings? Q2 2026 Results
Provident Financial Services delivered a clean beat to kick off the second half of its fiscal year, with Q2 2026 earnings per share of $0.60 topping the $0.56 consensus estimate by 6.19%, extending the company's streak of beating EPS estimates to five consecutive quarters. Revenue of $234.65 million cleared Wall Street's $228.51 million forecast by 2.69%, though it fell 31.7% from the year-ago period, reflecting the altered revenue base following the company's prior-year merger activity. The clearest driver of the quarter's strength was net interest margin expansion, with NIM widening to 3.48% from 3.36% a year ago, propelled by loan originations at current market rates and favorable repricing of adjustable-rate loans; net interest income climbed to $202.68 million from $187.09 million year-over-year. The company also posted a record $117.8 million in pre-provision net revenue, underscoring improving core profitability. Looking ahead, a record loan pipeline of $3.17 billion at a weighted average rate of 6.33%, with both CRE and C&I segments each exceeding $1.00 billion, points to continued growth momentum.
- Record net interest income driven by earning asset growth and expanded net interest margin
- Net interest margin expanded to 3.48% from 3.36% year-over-year
- Strong commercial loan growth at 9.9% annualized for the quarter
- Record loan pipeline of $3.17 billion with weighted average rate of 6.33%
- Non-interest income growth driven by fee income, swap fees, wealth management, and insurance agency income
- Core efficiency ratio improved to 49.75% from 53.52% year-over-year
- Favorable deposit repricing with cost of total deposits declining to 1.92% from 2.10% year-over-year
- Lower effective tax rate of 26.3% versus 29.7% year-over-year due to carry-back tax credits
“Through the first half of 2026, Provident has grown earnings per share 17% year-over-year while also significantly improving our profitability and building capital. We achieved record pre-provision net revenue during the second quarter, driven by strong commercial loan production, expanding core margin and increasing contribution from non-interest income, which represented nearly 14% of total revenues. We are proud of the noticeable momentum of our organization, and I'm optimistic that we will continue to drive organic growth with an unchanged commitment to achieving top quartile risk-adjusted returns.”
Provident Financial Services CEO, on the earnings call
Forward Guidance & Outlook
CEO expressed optimism about continuing to drive organic growth with an unchanged commitment to achieving top quartile risk-adjusted returns. The record loan pipeline of $3.17 billion with a weighted average rate of 6.33% — with both CRE and C&I pipelines exceeding $1.0 billion for the second consecutive quarter — signals sustained loan growth momentum. The company is undergoing a core system conversion with associated near-term costs.
PFS YoY Financials
PFS Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.