Provident Financial Services, Inc. Announces First Quarter Earnings and Declares Quarterly Cash Dividend

Provident Financial Services, Inc. Announces First Quarter Earnings and
Declares Quarterly Cash Dividend

ISELIN, N.J., April 25, 2014 (GLOBE NEWSWIRE) -- Provident Financial Services,
Inc. (NYSE:PFS) (the "Company") reported net income of $17.0 million, or $0.30
per basic and diluted share for the three months ended March 31, 2014,
compared to net income of $17.8 million, or $0.31 per basic and diluted share
for the three months ended March 31, 2013.

Continued improvement in asset quality and the related reduction in the
provision for loan losses coupled with growth in average loans outstanding and
an improvement in securities yields have been the key contributors to earnings
for the first quarter of 2014. Partially offsetting these items, commercial
prepayment fees have declined and certain operating costs have increased, a
portion of which were due to unusually high seasonal expenses resulting from
the severe winter weather.

Christopher Martin, Chairman, President and Chief Executive Officer,
commented, "We are pleased with our strong start to 2014, as loans grew at the
best pace for a first quarter in several years and our net interest margin
stabilized. Not surprisingly, earnings were impacted by costs associated with
the difficult winter in the region. Although our loan pipeline remains robust,
volume was constrained somewhat by our unwillingness to meet the aggressive
pricing offered by certain competitors. We will remain true to our
conservative credit standards and continue to carefully manage our interest
rate risk position."

Declaration of Quarterly Dividend

The Company's Board of Directors declared a quarterly cash dividend of $0.15
per common share payable on May 30, 2014, to stockholders of record as of the
close of business on May 15, 2014.

Balance Sheet Summary

Total assets increased $13.5 million to $7.50 billion at March 31, 2014, from
$7.49 billion at December 31, 2013, primarily due to an increase in total
loans, partially offset by decreases in total investments and cash and cash
equivalents.

The Company's loan portfolio increased $63.0 million, or 1.2%, to $5.26
billion at March 31, 2014, from $5.19 billion at December 31, 2013. Loan
originations totaled $360.9 million and loan purchases totaled $8.5 million
for the three months ended March 31, 2014. The loan portfolio had net
increases of $34.2 million in commercial loans, $29.1 million in construction
loans, primarily multi-family construction, $10.1 million in multi-family
mortgage loans, and $3.8 million in commercial mortgage loans, which were
partially offset by net decreases of $8.8 million and $5.5 million in
residential mortgage and consumer loans, respectively. Commercial real estate,
commercial and construction loans represented 67.0% of the loan portfolio at
March 31, 2014, compared to 66.3% at December 31, 2013.

At March 31, 2014, the Company's unfunded loan commitments totaled $918.3
million, including $336.3 million in commercial loan commitments, $254.0
million in construction loan commitments and $51.5 million in commercial
mortgage commitments. Unfunded loan commitments at December 31, 2013 were
$910.1 million.

Total investments decreased $26.3 million, or 1.7%, to $1.55 billion at March
31, 2014, from $1.57 billion at December31, 2013, largely due to principal
repayments on mortgage-backed securities, maturities of municipal and agency
bonds and sales of certain mortgage-backed securities, partially offset by
purchases of mortgage-backed and municipal securities.

Total deposits decreased $11.1 million during the three months ended March31,
2014 to $5.19 billion.Time deposits decreased $37.7 million, or 4.7%, to
$769.1 million at March31, 2014, with the majority of the decrease occurring
in the 12-, 24- and 60-month maturity categories.The decrease in time
deposits was partially offset by a $26.6 million increase in core deposits.At
March31, 2014, core deposits, which consist of savings and demand deposit
accounts, totaled $4.42 billion, compared to $4.40 billion at December31,
2013.Within the core deposit category, non-interest bearing demand deposits
increased $10.3 million, or 1.2%, to $875.5 million at March31, 2014.Core
deposits represented 85.2% of total deposits at March31, 2014, compared to
84.5% at December31, 2013.

Borrowed funds increased $16.3 million, or 1.4% during the three months ended
March31, 2014, to $1.22 billion, as longer-term wholesale funding was added
to mitigate interest rate risk, and shorter-term wholesale funding was used to
manage the cyclical outflow of municipal deposits.Borrowed funds represented
16.3% of total assets at March31, 2014, an increase from 16.1% at
December31, 2013.

Stockholders' equity increased $10.6 million, or 1.0% for the three months
ended March31, 2014, to $1.02 billion, due to net income earned for the
period and an increase in unrealized gains on securities available for sale,
partially offset by dividends paid to stockholders.Common stock repurchases
for the three months ended March31, 2014 totaled 231,575 shares at an average
cost of $16.75 per share.At March31, 2014, 3.5 million shares remained
eligible for repurchase under the current authorization.Book value per share
and tangible book value per share^(1) at March31, 2014 were $17.06 and
$11.11, respectively, compared with $16.87 and $10.92, respectively, at
December31, 2013.

Results of Operations

Net Interest Income and Net Interest Margin

For the three months ended March31, 2014, net interest income increased $1.3
million, to $55.2 million, from $53.9 million for the same period in 2013.The
improvement in the net interest income was due to the continued growth in
average loans outstanding, which was partially offset by year-over-year
compression in the net interest margin.

The Company's net interest margin increased 2 basis point to 3.28% for the
quarter ended March31, 2014, from 3.26% for the trailing quarter ended
December31, 2013.The weighted average yield on interest-earning assets
increased 2 basis point to 3.84% for the quarter ended March31, 2014,
compared with 3.82% for the quarter ended December31, 2013.The weighted
average cost of interest-bearing liabilities decreased 1 basis point to 0.68%
for the quarter ended March31, 2014, compared with 0.69% for the trailing
quarter.The average cost of interest bearing deposits for the quarter ended
March31, 2014 was 0.35%, compared with 0.37% for the quarter ended December
31, 2013.The average cost of borrowed funds for the quarter ended March31,
2014 was 1.87%, compared with 2.01% for the quarter ended December31, 2013.

The net interest margin for the quarter ended March31, 2014 decreased 5 basis
points to 3.28%, compared with 3.33% for the quarter ended March31, 2013.The
decrease in the net interest margin for the quarter ended March31, 2014,
compared with the same period last year, was primarily attributable to
reductions in the weighted average yield on loans, which declined 25 basis
points to 4.26% for the quarter ended March31, 2014, compared with 4.51% for
the quarter ended March31, 2013.Securities yields improved, however,
resulting in a net decrease in the earning asset yield of 8 basis points, to
3.84%.This decrease in earning asset yield outpaced the reduction in the
weighted average cost of interest bearing liabilities, which declined 3 basis
points to 0.68% for the quarter ended March31, 2014, compared with 0.71% for
the first quarter of 2013.The average cost of interest bearing deposits for
the quarter ended March31, 2014 was 0.35%, compared with 0.44% for the same
period last year.Average non-interest bearing demand deposits totaled $861.9
million for the quarter ended March31, 2014, compared with $819.5 million for
the quarter ended March31, 2013.The average cost of borrowed funds for the
quarter ended March31, 2014 was 1.87%, compared with 2.24% for the same
period last year.

Non-Interest Income

Non-interest income totaled $8.1 million for the quarter ended March31, 2014,
a decrease of $1.8 million, or 18.4%, compared to the same period in 2013.For
the quarter ended March31, 2014, fee income decreased $1.1 million to $6.9
million, from $8.0 million for the three months ended March31, 2013, due to a
decrease in commercial loan prepayment fees, partially offset by increases in
wealth management income and deposit fees.In addition, net gains on
securities transactions declined $861,000, with losses totaling $350,000 for
the three months ended March31, 2014, mainly due to the sale of a previously
impaired non-agency mortgage-backed security, compared to gains totaling
$511,000 for the same period in 2013.

Non-Interest Expense

For the three months ended March31, 2014, non-interest expense increased $1.2
million, to $38.2 million, compared to the three months ended March31,
2013.Compensation and benefits expense increased $550,000 for the quarter
ended March31, 2014, compared to the quarter ended March31, 2013, due to an
increase in stock-based compensation, higher salary expense resulting from
annual merit increases and increased employee medical costs, partially offset
by decreased severance costs and lower retirement benefit costs.Net occupancy
expense increased $883,000 for the quarter ended March31, 2014, compared to
the same period in 2013, principally due to significant increases in seasonal
expenses resulting from the harsh winter weather conditions.In addition,
advertising expense increased $319,000, to $1.1 million for the three months
ended March31, 2014, compared to the same period in 2013, due to the
introduction of the Company's new branding initiative, updated logo and the
related marketing campaigns.Partially offsetting these increases, other
operating expenses decreased $341,000 for the quarter ended March31, 2014,
compared to the quarter ended March31, 2013, largely due to lower costs
associated with foreclosed real estate.FDIC insurance costs declined $114,000
due to a lower assessment rate, and the amortization of intangibles decreased
$228,000 for the three months ended March31, 2014, compared with the same
period in 2013, as a result of scheduled reductions in core deposit intangible
amortization.

The Company's annualized non-interest expense as a percentage of average
assets was 2.07% for the quarter ended March31, 2014, compared with 2.08% for
the same period in 2013.The efficiency ratio (non-interest expense divided by
the sum of net interest income and non-interest income) was 60.32% for the
quarter ended March31, 2014, compared with 57.87% for the same period in
2013.

Asset Quality

The Company's total non-performing loans at March31, 2014 were $64.1 million,
or 1.22% of total loans, compared with $76.7 million, or 1.48% of total loans
at December31, 2013, and $99.1 million, or 2.02% of total loans at March31,
2013.The $12.6 million decrease in non-performing loans at March31, 2014,
compared with the trailing quarter, was due to an $8.4 million decrease in
non-performing construction loans, a $2.9 million decrease in non-performing
commercial loans, a $1.0 million decrease in non-performing residential loans
and a $529,000 decrease in non-performing consumer loans, partially offset by
a $256,000 increase in non-performing commercial mortgage loans.At March31,
2014, impaired loans totaled $94.6 million with related specific reserves of
$7.1 million, compared with impaired loans totaling $106.4 million with
related specific reserves of $10.2 million at December31, 2013.At March31,
2013, impaired loans totaled $112.0 million with related specific reserves of
$6.6 million.

At March31, 2014, the Company's allowance for loan losses was 1.21% of total
loans, a decrease from 1.24% at December31, 2013, and a decrease from 1.43%
of total loans at March31, 2013.The Company recorded provisions for loan
losses of $400,000 for the three months ended March31, 2014, compared with
$1.5 million for the three months ended March31, 2013.For the three months
ended March31, 2014, the Company had net charge-offs of $1.6 million,
compared with net charge-offs of $1.8 million for the same period in 2013.The
allowance for loan losses decreased $1.2 million to $63.4 million at March31,
2014, from $64.7 million at December31, 2013, as the weighted average risk
rating of the loan portfolio improved, certain non-performing asset
resolutions were completed, the allowance coverage of remaining non-performing
loans increased and the reduced pace of new non-performing asset formation
resulted in accelerated net outflows of non-performing assets.

At March31, 2014, the Company held $6.6 million of foreclosed assets,
compared with $5.5 million at December31, 2013.Foreclosed assets at
March31, 2014 consisted primarily of $4.0 million of commercial real estate
and $2.5 million of residential real estate.Total non-performing assets at
March31, 2014 declined $11.6 million, or 14.1%, to $70.6 million, or 0.94% of
total assets, from $82.2 million, or 1.10% of total assets at December31,
2013.

Income Tax Expense

For the three months ended March31, 2014, the Company's income tax expense
was $7.7 million, compared with $7.6 million for the same period in 2013.The
increase in income tax expense was a function of growth in pre-tax income from
taxable sources.The Company's effective tax rate was 31.1% and 29.8% for the
three months ended March31, 2014 and 2013, respectively.

About the Company

Provident Financial Services, Inc. is the financial holding company for The
Provident Bank, a community-oriented bank offering a full range of retail and
commercial loan and deposit products, through its network of full service
branches throughout northern and central New Jersey.

Post Earnings Conference Call

Representatives of the Company will hold a conference call for investors at
10:00 a.m. Eastern Time on Friday,April 25, 2014 regarding highlights of the
Company's first quarter 2014 financial results.The call may be accessed by
dialing 1-888-317-6016 (Domestic), 1-412-317-6016 (International) or
1-855-669-9657 (Canada).Internet access to the call is also available (listen
only) at www.providentnj.com by going to Investor Relations and clicking on
Webcast.

Forward Looking Statements

Certain statements contained herein are "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. 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," "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
related to the economic environment, particularly in the market areas in which
the Company operates, competitive products and pricing, fiscal and monetary
policies of the U.S. Government, changes in government regulations affecting
financial institutions, including regulatory fees and capital requirements,
changes in prevailing interest rates, acquisitions and the integration of
acquired businesses, credit risk management, asset-liability management, the
financial and securities markets and the availability of and costs associated
with sources of liquidity.

The Company cautions readers not to place undue reliance on any such
forward-looking statements which speak only as of the date 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 have
any obligation to update any forward-looking statements to reflect events or
circumstances after the date of this statement.

^(1)(2) Tangible equity, tangible book value per share and return on average
tangible equity are non-GAAP financial measures.Please refer to page 8 of
thisrelease for the reconciliation of GAAP to non-GAAP financial measures and
the associated calculations.

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Financial Condition
March 31, 2014 (Unaudited) and December 31, 2013
(Dollars in Thousands)
                                                           
Assets                                        March 31, 2014 December 31, 2013
                                                           
Cash and due from banks                       $80,273      $100,053
Short-term investments                        1,385          1,171
Total cash and cash equivalents               81,658         101,224
                                                           
Securities available for sale, at fair value  1,130,141      1,157,594
Investment securities held to maturity (fair
value of $362,264 at March 31, 2014           357,602        357,500
(unaudited) and $355,913 at December 31,
2013)
Federal Home Loan Bank Stock                  59,132         58,070
                                                           
Loans                                         5,257,774      5,194,813
Less allowance for loan losses                63,420         64,664
Net loans                                     5,194,354      5,130,149
Foreclosed assets, net                        6,558          5,486
Banking premises and equipment, net           68,513         66,448
Accrued interest receivable                   21,740         22,956
Intangible assets                             356,153        356,432
Bank-owned life insurance                     151,813        150,511
Other assets                                  73,162         80,958
Total assets                                  $7,500,826   $7,487,328
                                                           
Liabilities and Stockholders' Equity                        
                                                           
Deposits:                                                   
Demand deposits                               $3,494,124   $3,473,724
Savings deposits                              928,240        921,993
Certificates of deposit of $100,000 or more   255,165        270,631
Other time deposits                           513,891        536,123
Total deposits                                5,191,420      5,202,471
                                                           
Mortgage escrow deposits                      22,228         20,376
Borrowed funds                                1,220,212      1,203,879
Other liabilities                             45,625         49,849
Total liabilities                             6,479,485      6,476,575
                                                           
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, 83,209,293 shares issued
and 59,857,822 shares outstanding at          832            832
March31, 2014 and 59,917,649 outstanding at
December31, 2013
Additional paid-in capital                    1,023,595      1,026,144
Retained earnings                             435,602        427,763
Accumulated other comprehensive (loss) income (973)          (4,851)
Treasury stock                                (389,674)      (390,380)
Unallocated common stock held by the Employee (48,041)       (48,755)
Stock Ownership Plan
Common Stock acquired by the Directors'       (7,182)        (7,205)
Deferred Fee Plan
Deferred Compensation - Directors' Deferred   7,182          7,205
Fee Plan
Total stockholders' equity                    1,021,341      1,010,753
Total liabilities and stockholders' equity    $7,500,826   $7,487,328
                                                           

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Income
Three Months Ended March 31, 2014 and 2013 (Unaudited)
(Dollars in Thousands, except per share data)
                                                                  
                                                        Three Months Ended
                                                        March 31,
                                                        2014       2013
Interest income:                                                   
Real estate secured loans                                $38,552  $38,335
Commercial loans                                         10,547     9,971
Consumer loans                                           5,662      5,957
Securities available for sale and Federal Home Loan Bank 7,082      6,192
stock
Investment securities held to maturity                   2,670      2,839
Deposits, Federal funds sold and other short-term        10         10
investments
Total interest income                                    64,523     63,304
                                                                  
Interest expense:                                                  
Deposits                                                 3,738      4,956
Borrowed funds                                           5,584      4,453
Total interest expense                                   9,322      9,409
Net interest income                                      55,201     53,895
Provision for loan losses                                400        1,500
Net interest income after provision for loan losses      54,801     52,395
                                                                  
Non-interest income:                                               
Fees                                                     6,855      7,960
Bank-owned life insurance                                1,302      1,210
Net gain on securities transactions                      (350)      511
Other income                                             309        264
Total non-interest income                                8,116      9,945
                                                                  
Non-interest expense:                                              
Compensation and employee benefits                       21,393     20,843
Net occupancy expense                                    6,089      5,206
Data processing expense                                  2,797      2,622
FDIC Insurance                                           1,136      1,250
Advertising and promotion expense                        1,065      746
Amortization of intangibles                              283        511
Other operating expenses                                 5,427      5,768
Total non-interest expenses                              38,190     36,946
Income before income tax expense                         24,727     25,394
Income tax expense                                       7,698      7,566
Net income                                               $17,029  $17,828
                                                                  
Basic earnings per share                                 $0.30    $0.31
Average basic shares outstanding                         57,369,039 57,167,198
                                                                  
Diluted earnings per share                               $0.30    $0.31
Average diluted shares outstanding                       57,528,419 57,337,215
                                                                  

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Financial Highlights
(Dollars in Thousands, except share data) (Unaudited)
                                                                
                                                    At or for the
                                                    Three Months Ended
                                                    March 31,
                                                    2014         2013
STATEMENTS OF INCOME:                                            
Net interest income                                  $55,201    $53,895
Provision for loan losses                            400          1,500
Non-interest income                                  8,116        9,945
Non-interest expense                                 38,190       36,946
Income before income tax expense                     24,727       25,394
Net income                                           17,029       17,828
Diluted earnings per share                           $0.30        $0.31
Interest rate spread                                 3.16%        3.21%
Net interest margin                                  3.28%        3.33%
                                                                
PROFITABILITY:                                                   
Annualized return on average assets                  0.92%        1.00%
Annualized return on average equity                  6.74%        7.32%
Annualized return on average tangible equity ^(2)    10.34%       11.47%
Annualized non-interest expense to average assets    2.07%        2.08%
Efficiency ratio ^ (3)                               60.32%       57.87%
                                                                
ASSET QUALITY:                                                   
Non-accrual loans                                    $64,056    $99,059
90+ and still accruing                               —            —
Non-performing loans                                 64,056       99,059
Foreclosed assets                                    6,558        12,192
Non-performing assets                                70,614       111,251
Non-performing loans to total loans                  1.22%        2.02%
Non-performing assets to total assets                0.94%        1.55%
Allowance for loan losses                            $63,420    $70,034
Allowance for loan losses to total non-performing    99.01%       70.70%
loans
Allowance for loan losses to total loans             1.21%        1.43%
                                                                
AVERAGE BALANCE SHEET DATA:                                      
Assets                                               $7,473,956 $7,220,211
Loans, net                                           5,153,685    4,829,796
Earning assets                                       6,740,086    6,479,902
Core deposits                                        4,390,199    4,434,375
Borrowings                                           1,212,617    804,919
Interest-bearing liabilities                         5,528,390    5,350,792
Stockholders'equity                                 1,024,100    987,984
Average yield on interest-earning assets             3.84%        3.92%
Average cost of interest-bearing liabilities         0.68%        0.71%
                                                                
LOAN DATA:                                                       
Mortgage loans:                                                  
Residential                                          $1,165,196 $1,234,173
Commercial                                           1,404,466    1,349,565
Multi-family                                         939,018      743,356
Construction                                         212,419      135,611
Total mortgage loans                                 3,721,099    3,462,705
Commercial loans                                     966,444      874,880
Consumer loans                                       572,136      573,784
Total gross loans                                    5,259,679    4,911,369
Premium on purchased loans                           4,187        4,683
Unearned discounts                                   (57)         (73)
Net deferred                                         (6,035)      (5,624)
Total loans                                          $5,257,774 $4,910,355
                                                                

Notes - Reconciliation of GAAP to Non-GAAP Financial Measures
(Dollars in Thousands, except share data)
                                                                  
(1) Book and Tangible Book Value per Share
                                                      Three Months Ended
                                                      March 31,
                                                      2014         2013
Total stockholders' equity                             $1,021,341 $990,445
Less: total intangible assets                          356,153      357,477
Total tangible stockholders' equity                    $665,188   $632,968
                                                                  
Shares outstanding at December 31, 2013                59,857,822   59,968,621
                                                                  
Book value per share (total stockholders'              $17.06       $16.52
equity/shares outstanding)
Tangible book value per share (total tangible          $11.11       $10.55
stockholders' equity/shares outstanding)
                                                                  
(2) Return on Average Tangible Equity
                                                      Three Months Ended
                                                      March 31,
                                                      2014         2013
Total average stockholders' equity                     $1,024,100 $987,984
Less: total average intangible assets                  356,333      357,755
Total average tangible stockholders' equity            $667,767   $630,229
                                                                  
Net income                                             $17,029    $17,828
Annualized return on average tangible equity (net      10.34%       11.47%
income/total average stockholders' equity)
                                                                  
(3) Efficiency Ratio Calculation
                                                      Three Months Ended
                                                      March 31,
                                                      2014         2013
Net interest income                                    55,201       53,895
Non-interest income                                    8,116        9,945
Total income:                                          63,317      63,840
                                                                  
Non-interest expense:                                  38,190      36,946
                                                                  
Expense/income:                                        60.32%       57.87%
                                                                  

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Quarterly Average Balances
(Unaudited) (Dollars in Thousands)
                                                                 
                   March 31, 2014                 December 31, 2013
                   Average               Average Average            Average
                   Balance      Interest  Yield   Balance   Interest  Yield
Interest-Earning                                                  
Assets:
Deposits            $16,589    $10     0.25%   $18,161 $9      0.17%
Federal funds sold
and other           1,189        —         0.03%   1,559     —         0.02%
short-term
investments
Investment          357,852      2,670     2.98%   359,805   2,687     2.99%
securities ^(1)
Securities          1,151,959    6,478     2.25%   1,161,822 6,451     2.22%
available for sale
Federal Home Loan   58,812       604       4.16%   50,533    454       3.57%
Bank stock
Net Loans: ^(2)                                                   
Total mortgage      3,665,286    38,552    4.21%   3,607,080 38,271    4.19%
loans
Total commercial    915,105      10,547    4.64%   864,255   10,310    4.70%
loans
Total consumer      573,294      5,662     4.01%   572,792   5,894     4.08%
loans
Total Net Loans     5,153,685    54,761    4.26%   5,044,127 54,475    4.27%
Total                                              $
Interest-Earning    $6,740,086 $64,523 3.84%   6,636,007 $64,076 3.82%
Assets
                                                                 
Non-Interest                                                      
Earning Assets:
Cash and due from   63,167                       68,745             
banks
Other assets        670,703                      664,810            
Total Assets        $7,473,956                 $                 
                                                   7,369,562
                                                                 
Interest-Bearing                                                  
Liabilities:
Demand deposits     $2,609,846 $1,716  0.27%   $        $1,800  0.27%
                                                   2,629,850
Savings deposits    918,452      211       0.09%   924,935   247       0.11%
Time deposits       787,475      1,811     0.93%   823,195   2,067     1.00%
Total Deposits      4,315,773    3,738     0.35%   4,377,980 4,114     0.37%
                                                                 
Borrowed funds      1,212,617    5,584     1.87%   1,038,257 5,255     2.01%
Total
Interest-Bearing    5,528,390    9,322     0.68%   5,416,237 9,369     0.69%
Liabilities
                                                                 
Non-Interest        921,466                      945,327            
Bearing Liabilities
Total Liabilities   6,449,856                    6,361,564          
Stockholders'       1,024,100                    1,007,998          
equity
Total Liabilities                                  $
and Stockholders'   $7,473,956                 7,369,562          
Equity
                                                                 
Net interest income             $55,201                 $54,707 
                                                                 
Net interest rate                        3.16%                     3.13%
spread
Net                                                $
interest-earning    $1,211,696                 1,219,770          
assets
                                                                 
Net interest margin                      3.28%                     3.26%
^(3)
Ratio of
interest-earning
assets to total     1.22x                        1.23x              
interest-bearing
liabilities

(1) Average outstanding balance amounts shown are amortized cost.
(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.
   

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Average Year to Date Balances
(Unaudited) (Dollars in Thousands)
                                                                 
                March 31, 2014                 March 31, 2013
                Average               Average Average               Average
                Balance      Interest  Yield   Balance      Interest  Yield
Interest-Earning                                                  
Assets:
Deposits         $16,589    $10     0.25%   $16,639    $10     0.25%
Federal funds
sold and other   1,189        —         0.03%   1,424        —         0.01%
short term
investments
Investment       357,852      2,670     2.98%   350,326      2,839     3.24%
securities ^(1)
Securities
available for    1,151,959    6,478     2.25%   1,243,647    5,764     1.85%
sale
Federal Home     58,812       604       4.16%   38,070       428       4.56%
Loan Bank stock
Net Loans: ^(2)                                                   
Total mortgage   3,665,286    38,552    4.21%   3,418,532    38,335    4.49%
loans
Total commercial 915,105      10,547    4.64%   839,389      9,971     4.78%
loans
Total consumer   573,294      5,662     4.01%   571,875      5,957     4.22%
loans
Total Net Loans  5,153,685    54,761    4.26%   4,829,796    54,263    4.51%
Total
Interest-Earning $6,740,086 $64,523 3.84%   $6,479,902 $63,304 3.92%
Assets
                                                                 
Non-Interest                                                      
Earning Assets:
Cash and due     63,167                       75,239                
from banks
Other assets     670,703                      665,070               
Total Assets     $7,473,956                 $7,220,211          
                                                                 
Interest-Bearing                                                  
Liabilities:
Demand deposits  $2,609,846 $1,716  0.27%   $2,696,385 $1,954  0.29%
Savings deposits 918,452      211       0.09%   918,535      267       0.12%
Time deposits    787,475      1,811     0.93%   930,953      2,735     1.19%
Total Deposits   4,315,773    3,738     0.35%   4,545,873    4,956     0.44%
Borrowed funds   1,212,617    5,584     1.87%   804,919      4,453     2.24%
Total
Interest-Bearing $5,528,390 $9,322  0.68%   $5,350,792 $9,409  0.71%
Liabilities
                                                                 
Non-Interest
Bearing          921,466                      881,435               
Liabilities
Total            6,449,856                    6,232,227             
Liabilities
Stockholders'    1,024,100                    987,984               
equity
Total
Liabilities and  $7,473,956                 $7,220,211          
Stockholders'
Equity
                                                                 
Net interest                 55,201                       53,895    
income
                                                                 
Net interest                          3.16%                        3.21%
rate spread
Net
interest-earning $1,211,696                 $1,129,110          
assets
                                                                 
Net interest                          3.28%                        3.33%
margin ^(3)
                                                                 
Ratio of
interest-earning
assets to total  1.22x                        1.21x                 
interest-bearing
liabilities
                                                                 

(1) Average outstanding balance amounts shown are amortized cost.
(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.


The following table summarizes the quarterly net interest margin for the
previous five quarters.
                                                                  
                                3/31/14  12/31/13    9/30/13  6/30/13 3/31/13
                                1st      4th Quarter 3rd      2nd     1st
                                 Quarter              Quarter  Quarter Quarter
Interest-Earning Assets:                                           
Securities                       2.46%    2.41%       2.25%    2.20%   2.19%
Net loans                        4.26%    4.27%       4.33%    4.39%   4.51%
Total interest-earning assets    3.84%    3.82%       3.83%    3.84%   3.92%
                                                                  
Interest-Bearing Liabilities:                                      
Total deposits                   0.35%    0.37%       0.39%    0.41%   0.44%
Total borrowings                 1.87%    2.01%       2.00%    2.03%   2.24%
Total interest-bearing           0.68%    0.69%       0.67%    0.67%   0.71%
liabilities
                                                                  
Interest rate spread             3.16%    3.13%       3.16%    3.17%   3.21%
Net interest margin              3.28%    3.26%       3.28%    3.29%   3.33%
                                                                  
Ratio of interest-earning assets 1.22x    1.23x       1.22x    1.21x   1.21x
to interest-bearing liabilities

CONTACT: Investor Relations, Provident Financial Services, Inc.,
         1-732-590-9300
         Web Site: http://www.providentnj.com

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