NYSE$PFS

Provident Financial Services Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Provident Financial's earnings were impacted by elevated provisions for credit losses due to a new accounting standard and the weak economic forecast caused by the COVID-19 pandemic.

Provident Financial Services, Inc. reported a net income of $14.9 million, or $0.23 per basic and diluted share, for the three months ended March 31, 2020. This is compared to a net income of $30.9 million, or $0.48 per basic and diluted share, for the same period in 2019. The decline was primarily due to elevated provisions for credit losses and costs related to the acquisition of SB One Bancorp.

  • Net income was $14.9 million, or $0.23 per share.
  • Earnings were negatively impacted by provisions for credit losses and acquisition costs.
  • Total assets increased to $10.08 billion.
  • The company secured 820 PPP loans for $377.5 million and provided deferred payment relief to 638 customers with $889.0 million in outstanding loan balances.

Headline financials

Total Revenue

$89M

Previous: $87.2M+2.1%
EPS (adj)

$0.23

Previous: $0.48-52.1%
Efficiency Ratio

59.1%

Previous: 55.5%+6.5%
Net Interest Margin

3.2%

Previous: 3.4%-5.9%
Non-perf. Loans/Loans

0.5%

Previous: 0.3%+41.2%
Non-perf. Assets/Assets

0.4%

Previous: 0.3%+44.4%
Loan Loss Allowance

1.0%

Previous: 0.8%+32.5%
Capital Expenditures

-$1.66M

Previous: -$593K-180.6%
Free Cash Flow

$13.3M

Previous: $30.3M-56.2%
Net Income

$14.9M

Previous: $30.9M-51.7%
Operating Income

$56.7M

Previous: $59.2M-4.2%
Gross Profit

$74.3M

Previous: $87.2M-14.8%
Cash & Equivalents

$371M

Previous: $198M+87.3%
Total Assets

$10.1B

Previous: $9.8B+2.9%

Revenue & EPS history

Provident Financial · Revenue · Quarterly

$89M

Q1 2020+2.1%vs Q1 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Provident Financial · $9.09M total across 3 segments · Q3 2023

  • Fees
    $6.13M
  • BOLI
    $1.82M
  • Other Income
    $1.14M

Forward guidance

The COVID-19 pandemic is having an adverse impact on the Company, its customers and the communities it serves. Given its ongoing and dynamic nature, it is difficult to predict the full impact of the COVID-19 outbreak on our business.

Tailwinds

  • Medical advances
  • Government programs
  • Consumer behavior
  • Employment conditions
  • Company's capital strength

Headwinds

  • The demand for our products and services may decline, making it difficult to grow assets and income
  • Loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income
  • Collateral for loans, especially real estate, may decline in value, which could cause loan losses to increase
  • Our allowance for loan losses may increase if borrowers experience financial difficulties, which will adversely affect our net income
  • Our wealth management revenues may decline with continuing market turmoil

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.1%

Avg return

Earnings day

-0.3%

Avg return

5 days after

+0.6%

Avg return

30 days after

49%

34 / 69 earnings

Positive

+10.8%

Q4 2018

Best reaction

-15.1%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.3%-0.3%-2.2%
Q4 2025+6.8%+9.0%+1.0%
Q3 2025-1.1%-1.5%+3.3%
Q2 2025-2.6%-2.0%+2.9%
Q1 2025-2.0%-3.0%-2.3%
Q4 2024-4.6%-5.0%-4.9%
Q3 2024-1.5%-2.4%+10.4%
Q2 2024+0.4%-0.1%+3.0%
Q1 2024+6.2%+14.0%+18.8%
Q4 2023+1.2%+1.8%-13.2%
Q3 2023+1.6%+1.4%+9.7%
Q2 2023-1.0%-3.7%-15.8%
Q1 2023+1.0%-9.7%-5.5%
Q4 2022+2.5%+5.9%+4.3%
Q3 2022+7.0%+4.7%+8.1%
Q2 2022+1.3%-0.2%-0.0%
Q1 2022-1.0%+3.3%+4.7%
Q4 2021+2.5%+1.0%+0.4%
Q3 2021+2.2%+3.1%-2.4%
Q2 2021-1.3%-1.1%+2.4%
Q1 2021+1.1%+3.0%+5.1%
Q4 2020-3.7%-2.5%+8.1%
Q3 2020+6.0%+1.3%+21.3%
Q2 2020-6.4%-8.0%-8.1%
Q1 2020-15.1%-20.1%-19.0%
Q4 2019-1.7%-0.4%-15.2%
Q3 2019+0.8%+0.6%-3.2%
Q2 2019-3.6%-2.4%-6.4%
Q1 2019+0.6%-2.1%-9.0%
Q4 2018+10.8%+11.3%+11.8%
Q3 2018+8.5%+6.5%+7.9%
Q2 2018-7.1%-7.8%-7.4%
Q1 2018-1.5%-1.0%+5.2%
Q4 2017-3.6%-4.5%-5.8%
Q3 2017-1.3%-2.1%-2.1%
Q2 2017+3.0%+2.4%-3.5%
Q1 2017-2.6%-2.6%-9.4%
Q4 2016-1.5%-1.7%-0.0%
Q3 2016+4.9%+1.7%+25.7%
Q2 2016-0.2%+0.3%+5.3%
Q1 2016-1.5%
Q4 2015+4.2%
Q3 2015-3.5%
Q2 2015+3.7%
Q1 2015-3.3%
Q4 2014+3.4%
Q3 2014+2.2%
Q2 2014-0.5%
Q1 2014-3.3%
Q4 2013-6.7%
Q3 2013+6.2%
Q2 2013+0.5%
Q1 2013+0.5%
Q4 2012-0.2%
Q3 2012-3.7%
Q2 2012+0.9%
Q1 2012+1.3%
Q4 2011-3.4%
Q3 2011-4.2%
Q2 2011-1.7%
Q1 2010+0.3%
Q1 2011+0.4%
Q4 2009-1.1%
Q4 2010-1.1%
Q4 2008-1.1%
Q3 2009+0.7%
Q3 2010+0.7%
Q2 2009+0.7%
Q2 2010+0.7%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro