Provident earnings fell in the third quarter of 2026 after a one-time debt-related charge and system conversion costs. Provident Financial Services reported net income of $69.2 million, or $0.53 per diluted share, down from $71.7 million, or $0.55 per share, a year earlier.

Key Takeaways

  • The quarter included a $17.5 million loss on extinguishment of debt and $3.7 million in core conversion costs.
  • Net interest income increased to $208.0 million, while the net interest margin widened to 3.50%.
  • Total deposits rose to $19.81 billion at September 30, with core deposits up $233.7 million from the prior quarter.

Provident earnings and one-time expenses

The Iselin, New Jersey-based bank holding company reported third-quarter net income below the $78.1 million, or $0.60 per diluted share, earned in the second quarter of 2026.

Provident said the latest quarter was affected by a $17.5 million one-time loss on extinguishment of debt, caused by accelerated amortization of purchase accounting adjustments. Results also included $3.7 million in core conversion costs and $465,000 in branch restructuring expenses. The company said it completed its previously announced core system conversion during the quarter.

Excluding those expenses, core net income, a non-GAAP measure, was $84.3 million, or $0.65 per diluted share. For the first nine months of 2026, reported net income rose to $226.7 million from $207.7 million in the same period of 2025.

Interest income and deposits increase

Net interest income rose by $13.7 million from a year earlier to $208.0 million. Provident attributed the increase primarily to growth in earning assets and a wider net interest margin, which rose to 3.50% from 3.43%.

Total deposits increased by $261.7 million during the quarter to $19.81 billion. Core deposits, which the company defines as excluding certificates of deposit and wholesale deposits, reached $15.42 billion. The loan-to-deposit ratio eased to 101.8% from 102.6% at June 30.

Non-performing loans represented 0.69% of total loans at September 30, compared with 0.68% at the end of June. Net charge-offs for the third quarter were $2.4 million.

Management call scheduled

Provident’s conference call announcement scheduled a discussion of the third-quarter results for October 29, 2026, at 10 a.m. Eastern time.

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