Provident Financial Services Inc 2024年度报告

BUILDING FOR THE FUTURE Provident Financial Services, Inc.is the holding company for Provident Bank. Established in1839, Provident Bank emphasizes “Commitment You Can Count On” in attending to the financialneeds of businesses, individuals, and families throughout New Jersey, eastern Pennsylvania,and Nassau, Orange and Queens Counties in New York. The Bank offers a broad array ofdeposit, loan, and investment products, as well as wealth management, trust, and fiduciaryservices through its wholly owned subsidiary, Beacon Trust Company, and insurance servicesthrough its wholly owned subsidiary, Provident Protection Plus, Inc. Financial Highlights A Message from Christopher MartinandAnthony Labozzetta Dear Fellow Shareholders, Reflecting on 2024, we recognize the challenges that havedefined the year – from persistent inflation and fluctuatinginterest rates to natural disasters and an evolving geopoliticallandscape. Despite these external factors, we made significantstrides, achieving key milestones that have strengthened ourposition as the premier super community banking franchise inthe region. We are proud to share our accomplishments andthe strategic initiatives that have positioned us for long-termsuccess. Our key performance metrics reflect the success of ourstrategic initiatives, operational efficiencies, and disciplinedrisk management. The successful merger with Lakeland hascreated a more robust financial institution with greater earningspotential and enhanced capabilities, setting the stage forfurther growth in the years ahead. STRATEGIC INTEGRATION AND EXPANSION The seamless integration of operating systems, alignment ofcorporate cultures, and dedication to the customer experiencehave been hallmarks of a year defined by our merger. Throughdetailed planning and execution, we ensured that the transitionfor both customers and employees was smooth, with minimaldisruption to service. We could not have accomplished thiswithout the commitment and tireless efforts of our teammembers. The new organization now benefits from a strongerfoundation to drive revenue growth, deepen customerrelationships, and enhance business operations. Our signature achievement of the year was the successfulcompletion of our merger with Lakeland Bancorp. Thistransformative merger was made possible by our teams’resilience and commitment to flawless execution. In addition,the attainment of an investment-grade debt rating from KBRA,followed by the issuance of $225 million in subordinated debt,bolstered our capital position and enabled us to complete thefinal steps of the regulatory approval process. We extend a warm welcome to our new team members,customers, shareholders and board members from Lakeland.The integration of our two institutions has been guided by ashared commitment to excellence, innovation, and communityservice. The combination of our banks has allowed us toenhance our market reach, improve operating scale andefficiency, and reinforce our competitive position in the region. Our larger footprint and expanded team allows us to providea comprehensive offering of products and services, blendingthe personalized customer experience of a community bankwith the expansive capabilities of a larger financial institution.The integration of our business lines leverages the best of bothorganizations to better serve our customers. For instance,one of the key enhancements resulting from the merger isthe expansion of our specialty lending capabilities, which nowinclude Asset Based, Mortgage Warehouse, and HealthcareLending for businesses to obtain much needed financing fromProvident Bank. FINANCIAL HIGHLIGHTS Provident Financial Services delivered strong financialperformance in 2024. Our stable core deposit fundingcontributed to a 3.26% net interest margin that, aided by solidperformance from our wealth management and insuranceoperations, helped drive a pre-tax, pre-provision return onaverage assets adjusted for merger-related expenses of1.46% and an adjusted pre-tax pre-provision return onaverage tangible equity of 18.77% for the year. In 2024, we launched our small business lending platform,addressing a significant opportunity in our product offeringsand meeting the growing needs of small businesses—thebackbone of our communities. This initiative is expected todrive deposit and treasury management growth while openingdoors for expansion in our wealth management and insurancebusiness lines. As part of our strategic expansion in Eastern Pennsylvania,we added six experienced lenders to our commercial lendingteam, strengthening our presence in this critical market. Inaddition, we were pleased to welcome a highly accomplishedChief Lending Officer to lead our commercial banking efforts.Their expertise and vision will support our business strategy togrow our lending portfolios, intensify customer relationships,and broaden our horizons in the markets we serve. LOOKING AHEAD As we move forward, we remain committed to executing ou