Provident Financial Services, Inc. reported significant growth in its financial performance for the third quarter and the nine months ended September 30, 2024, largely driven by its recent merger with Lakeland Bancorp, Inc. The merger, completed on May 16, 2024, added approximately $10.91 billion in total assets, $7.91 billion in loans, and $8.62 billion in deposits.
As of September 30, 2024, total assets reached $24.04 billion, a substantial increase from $14.21 billion at the end of 2023. Total deposits rose to $18.38 billion, up from $10.29 billion, while total liabilities increased to $21.42 billion from $12.52 billion. Stockholders’ equity also saw a notable rise, reaching $2.62 billion compared to $1.69 billion at the end of the previous year.
For the three months ended September 30, 2024, total interest income surged to $322.5 million, up from $158.2 million in the same period of 2023. Net interest income for the quarter was $183.7 million, compared to $96.2 million a year earlier, reflecting a net interest margin increase to 3.31% from 2.96%. The nine-month figures showed total interest income of $734.2 million, up from $451.6 million in 2023, with net interest income rising to $418.9 million from $303.7 million.
Net income for the third quarter was $46.4 million, or $0.36 per share, compared to $28.5 million, or $0.38 per share, in the prior year. However, net income for the nine months decreased to $67.0 million from $101.1 million in 2023, primarily due to increased provisions for credit losses, which totaled $75.9 million for the nine months, up from $27.4 million in the same period last year. The initial CECL provision for credit losses related to the Lakeland merger was $60.1 million.
Non-interest income for the third quarter increased to $26.9 million from $19.3 million in 2023, while non-interest expenses rose significantly to $136.0 million from $65.6 million, largely due to merger-related costs totaling $15.6 million for the quarter.
The merger also led to the closure of 13 banking offices in the third quarter, reflecting a strategic consolidation of operations. The company is currently evaluating the impact of ASU 2023-09, which mandates improved annual income tax disclosures, and anticipates a loan sale of approximately $170 million from its commercial loan portfolio in the upcoming quarter.
About PROVIDENT FINANCIAL SERVICES INC
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