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Provident Financial Services (PFS)
NYSE:PFS
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Provident Financial Services
(NYSE:PFS)
Select Model
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Rating:74Outperform
Price Target:
$20.50
▲(6.49% Upside)
Provident Financial Services has a strong overall stock score driven by solid financial performance and a positive earnings call. The attractive valuation further supports the score, although technical indicators suggest some caution due to bearish trends. The company's robust profitability, cash flow management, and strategic growth initiatives position it well in the regional banking sector.
Positive Factors
Strong Deposit and Loan Growth
The significant growth in deposits and loans indicates robust customer trust and expanding market presence, supporting long-term revenue stability.
Improvement in Credit Metrics
Improved credit metrics reflect effective risk management and asset quality, enhancing financial stability and reducing future credit risk.
Growth in Noninterest Income
Diversification of income sources through noninterest income growth strengthens revenue streams and reduces reliance on interest rate fluctuations.
Negative Factors
Decline in Revenue Growth
A decline in revenue growth could signal challenges in market expansion or product demand, potentially impacting long-term financial performance.
Elevated Loan Prepayments
Higher loan prepayments can reduce interest income and affect loan portfolio growth, posing a challenge to maintaining revenue levels.
Increased Loan Competition
Rising competition in lending can pressure pricing and margins, potentially affecting profitability and market share in the long term.
Provident Financial Services (PFS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.39B
Dividend Yield4.99%
Average Volume (3M)625.37K
Price to Earnings (P/E)9.3
Beta (1Y)0.99
Revenue Growth38.34%
EPS Growth89.73%
CountryUS
Employees1,753
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.55
Shares Outstanding130,624,150
10 Day Avg. Volume553,311
30 Day Avg. Volume625,368
Financial Highlights & Ratios
PEG Ratio-0.46
Price to Book (P/B)0.80
Price to Sales (P/S)1.81
P/FCF Ratio4.87
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price Target
$22.00Price Target Upside14.29% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Provident Financial Services Business Overview & Revenue Model
Company DescriptionProvident Financial Services (PFS) is a financial institution headquartered in New Jersey, primarily engaged in the banking sector. The company offers a range of financial products and services including commercial and residential mortgage lending, deposit accounts, and various personal and business banking services. PFS operates through its wholly-owned subsidiary, Provident Bank, which serves both individual and commercial clients across its network of branches.
How the Company Makes MoneyProvident Financial Services generates revenue primarily through interest income from loans, which includes residential and commercial mortgages. The company also earns money from service fees associated with deposit accounts and transaction services. Additionally, PFS benefits from investment income and gains from mortgage banking activities, including the sale of loans in the secondary market. Key revenue streams include net interest margin from lending activities, fee income from banking services, and investment returns. Strategic partnerships with real estate agents and developers further enhance their lending business, contributing to overall earnings.
Provident Financial Services Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jan 23, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong performance by Provident Financial Services, with record earnings and revenue, substantial deposit and loan growth, and improved credit metrics. However, challenges such as elevated loan prepayments and increased competition in the lending market were noted. Overall, the positive aspects outweigh the challenges.Q3-2025 Updates
Positive Updates
Record Net Earnings and Revenue
Provident Financial Services reported net earnings of $72 million or $0.55 per share, consistent with the previous quarter. Revenue reached a record $222 million, driven by record net interest income of $194 million.
Strong Deposit and Loan Growth
Deposits increased by $388 million or an annualized rate of 8%. The commercial lending team closed approximately $742 million in new loans, contributing to a commercial portfolio growth at an annualized rate of 5%.
Improvement in Credit Metrics
Nonperforming assets improved 3 basis points to 0.41%. Net charge-offs were only $5.4 million for the quarter.
Growth in Noninterest Income
Noninterest income increased to $27.4 million, with substantial contributions from Provident Protection Plus and Beacon Trust, which saw revenue growth to $7.3 million.
Negative Updates
Elevated Loan Prepayments
Loan prepayments were higher than expected, with $348 million in payoffs during the quarter, affecting loan growth.
Increased Loan Competition
There is increased competition in the lending market, especially in the CRE sector, affecting pricing and potentially impacting future margins.
Company Guidance
In the Provident Financial Services third-quarter earnings call for fiscal year 2025, the company reported continued strong performance with net earnings of approximately $72 million or $0.55 per share, maintaining consistency with the previous quarter. Key financial metrics included an annualized return on average assets of 1.16% and an adjusted return on average tangible equity of 16.01%. Notably, pretax pre-provision revenues hit a record of nearly $109 million, with a pretax pre-provision return on average assets improving to 1.76% from 1.64% in the prior quarter. The company saw a significant increase in deposits, which grew by $388 million or an annualized rate of 8%, driven primarily by core deposits. The commercial loan portfolio expanded at an annualized rate of 5%, with the loan pipeline growing to nearly $2.9 billion. Provident also emphasized its strong credit position, with nonperforming assets improving to 0.41% and net charge-offs only $5.4 million. Noninterest income grew, with significant contributions from Provident Protection Plus and Beacon Trust, and the company continued to invest in its SBA capabilities. The Board approved a quarterly cash dividend of $0.24 per share, reflecting the company's robust capital position and strategic investment initiatives.Provident Financial Services Financial Statement Overview
Summary
Provident Financial Services demonstrates solid financial health with strong profitability and cash flow management. Despite a decline in revenue growth, the company maintains high profit margins and effective cash generation. The balance sheet reflects moderate leverage, supporting a stable financial structure.Income Statement
Provident Financial Services shows a mixed performance in its income statement. The TTM data indicates a decline in revenue growth rate by 4.21%, which is a concern. However, the company maintains a strong net profit margin of 22.38% and an EBITDA margin of 44.91%, indicating efficient cost management and profitability. Despite the revenue decline, the company has managed to sustain profitability, which is a positive sign.72
Positive
Balance Sheet
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.94, which is reasonable for the banking industry. The return on equity (ROE) stands at 9.55%, showing effective use of equity to generate profits. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing. Overall, the balance sheet suggests moderate leverage and satisfactory equity returns.65
Positive
Cash Flow
Cash flow analysis reveals a robust free cash flow growth rate of 6.13% in the TTM period, indicating strong cash generation capabilities. The free cash flow to net income ratio is nearly 1, demonstrating efficient conversion of net income into cash. The operating cash flow to net income ratio is not provided, but the available metrics suggest healthy cash flow management.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.03B | 1.14B | 695.65M | 553.97M | 489.15M | 435.74M |
| Gross Profit | 639.88M | 607.16M | 451.12M | 500.34M | 475.66M | 353.47M |
| EBITDA | 345.66M | 204.20M | 197.97M | 263.81M | 249.85M | 147.59M |
| Net Income | 207.73M | 115.53M | 128.40M | 175.65M | 167.92M | 96.95M |
Balance Sheet | ||||||
| Total Assets | 24.83B | 24.05B | 14.21B | 13.78B | 13.78B | 12.92B |
| Cash, Cash Equivalents and Short-Term Investments | 3.44B | 2.97B | 1.87B | 1.99B | 2.77B | 1.64B |
| Total Debt | 2.61B | 2.42B | 1.53B | 1.35B | 637.06M | 1.20B |
| Total Liabilities | 22.07B | 21.45B | 12.52B | 12.19B | 12.08B | 11.30B |
| Stockholders Equity | 2.77B | 2.60B | 1.69B | 1.60B | 1.70B | 1.62B |
Cash Flow | ||||||
| Free Cash Flow | 607.43M | 425.07M | 165.91M | 190.90M | 143.01M | 90.48M |
| Operating Cash Flow | 612.60M | 426.38M | 173.40M | 200.31M | 156.81M | 103.30M |
| Investing Cash Flow | -1.14B | 507.67M | -469.60M | -647.56M | -716.57M | -504.37M |
| Financing Cash Flow | 583.26M | -908.37M | 289.95M | -78.70M | 739.86M | 746.68M |
Provident Financial Services Technical Analysis
Positive
19.25
Price Trends
18.74
Positive
18.69
Positive
17.57
Positive
Market Momentum
0.09
Negative
59.44
Neutral
79.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PFS, the sentiment is Positive. The current price of 19.25 is above the 20-day moving average (MA) of 18.41, above the 50-day MA of 18.74, and above the 200-day MA of 17.57, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 59.44 is Neutral, neither overbought nor oversold. The STOCH value of 79.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PFS.
Provident Financial Services Risk Analysis
Provident Financial Services disclosed 31 risk factors in its most recent earnings report. Provident Financial Services reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Provident Financial Services Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.39B | 9.31 | 9.51% | 4.99% | 38.34% | 89.73% | |
73 Outperform | $2.21B | 11.79 | 10.28% | 3.04% | 6.98% | 15.08% | |
72 Outperform | $2.47B | 9.29 | 10.16% | 4.12% | 5.15% | 16.42% | |
68 Neutral | $2.15B | 9.30 | 9.90% | 4.06% | -1.76% | 32.44% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $2.36B | 11.39 | 7.49% | 3.35% | -1.58% | 6.34% | |
54 Neutral | $2.70B | ― | -12.42% | 4.68% | -55.53% | -387.04% |
* Financial Sector Average
PFS
Provident Financial Services
19.25
-0.81
-4.04%
BANR
Banner
63.83
-8.50
-11.75%
FFBC
First Financial Bancorp
25.06
-3.41
-11.98%
FRME
First Merchants
37.13
-5.11
-12.10%
SFNC
Simmons 1st Nat'l
18.63
-4.85
-20.66%
WAFD
Washington Federal
32.27
-3.02
-8.56%
Provident Financial Services Corporate Events
Provident Financial Services Reports Record Earnings Amid Market Challenges
Nov 1, 2025
Provident Financial Services Reports Record Earnings Amid Market Challenges
Provident Financial Services Reports Steady Q3 2025 Earnings
Oct 31, 2025
Provident Financial Services, Inc. is a community-oriented bank holding company that provides a wide range of financial products and services through its branches in New Jersey, Pennsylvania, and New York. It also offers fiduciary and wealth management services through its subsidiary, Beacon Trust Company, and insurance services via Provident Protection Plus, Inc.
Dividends
Provident Financial Services Declares Quarterly Dividend
Positive
Oct 30, 2025
On October 30, 2025, Provident Financial Services, Inc. announced that its Board of Directors declared a quarterly cash dividend of $0.24 per common share. This dividend is payable on November 28, 2025, to stockholders of record as of November 14, 2025, reflecting the company’s ongoing commitment to providing shareholder value.
The most recent analyst rating on (PFS) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on Provident Financial Services stock, see the PFS Stock Forecast page.
Business Operations and StrategyFinancial Disclosures
Provident Financial Services Reports Record Q3 2025 Revenue
Positive
Oct 30, 2025
Provident Financial Services reported record revenue for the second consecutive quarter, totaling $221.8 million for Q3 2025, driven by net interest income and non-interest income. The company saw significant growth in its commercial and industrial loan portfolio and improved asset quality, with non-performing assets decreasing to 0.41% of total assets. The tangible book value per share increased, and the company maintained a stable core funding base, reflecting a strong financial position and operational efficiency.
The most recent analyst rating on (PFS) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on Provident Financial Services stock, see the PFS Stock Forecast page.
Financial Disclosures
Provident Financial Services Reports Strong Q3 Earnings
Positive
Oct 30, 2025
On October 29, 2025, Provident Financial Services, Inc. reported its third-quarter earnings, highlighting a net income of $71.7 million for the quarter ended September 30, 2025. The company achieved record revenues for the second consecutive quarter, driven by growth in earning assets and deposits, and improved operational efficiency. The commercial and industrial loan portfolio saw significant growth, and total deposits increased by $387.7 million. Despite a provision for credit losses, the company maintained strong asset quality, with non-performing assets improving to 0.41% of total assets.
The most recent analyst rating on (PFS) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on Provident Financial Services stock, see the PFS Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.